Mentgen v. Dowell

2021 IL App (2d) 200017-U
Appellate Court of Illinois·Decided March 10, 2022·No. 2-20-0017·Unpublished

Opinion

No. 2-20-0017

Order filed March 10, 2022

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

SUSAN BEESON MENTGEN, as Trustee ) Appeal from the Circuit Court of the May H. Beeson Trust, dated May ) of McHenry County. 19, 1992, )

)

Plaintiff-Appellant, )

)

v. ) No. 17-LA-402 )

CHARLES F. DOWELL, ROXANN ) DOWELL, PAT BETLINSKI, BERKSHIRE ) HATHAWAY HOME SERVICES STARCK ) REAL ESTATE, an Illinois corporation, ) CODY BOOK, LISA HADERLEIN, and THE ) LAND CONSERVANCY OF MCHENRY ) COUNTY, an Illinois not-for-profit corporation,)

)

Defendants )

)

(Charles F. Dowell, Roxann Dowell, ) Pat Betlinski, Berkshire Hathaway Home ) Services Starck Real Estate, an Illinois ) Honorable corporation, and Cody Book, Defendants- ) Thomas Meyer, Appellees). ) Judge, Presiding.

JUSTICE McLAREN delivered the judgment of the court.

Justices Jorgensen and Brennan concurred in the judgment.

ORDER

¶1 Held: (1) Plaintiff failed to properly preserve for appeal the issues of whether the trial court erred in dismissing counts I, II, V, and VII of her Amended Complaint;

plaintiff filed a Second Amended Complaint that changed the allegations of those counts instead of one that realleges, incorporates by reference, or refers to the dismissed counts; (2) the trial court erred in dismissing counts alleging unjust enrichment and breach of fiduciary duty; (3) trial court affirmed in part, reversed in part, and the cause remanded for further proceedings.

¶2 Plaintiff, Susan Beeson Mentgen, as Trustee of the May H. Beeson Trust dated May 9, 1992 (Trust), appeals from (1) the trial court’s dismissal of various counts of her amended and second-amended complaints and (2) the trial court’s denial of her motion to reconsider and motion for leave to file a second-amended complaint against certain defendants. We reverse and remand.

¶3 I. BACKGROUND

¶4 The facts herein are drawn from the factual allegations contained in Mentgen’s Second Amended Complaint. The Trust is the former owner of a 120-acre parcel of property in Harvard, Illinois. More than 60 acres of the property had been used as a nursery and for land conservation purposes. In 2009, the Trust conveyed a conservation easement on the property to defendant, The Land Conservancy of McHenry County (TLC), a nonprofit land trust whose purpose includes the conservation of farmland. The reason for the grant of the easement was two-fold: (1) to preserve the property in its current condition; and (2) an income tax deduction. An appraisal of the property done for income tax purposes revealed a value of $1,200,000 before the implementation of the easement and a value of $600,000 after implementation. This appraisal was accepted by the Internal Revenue Service for tax deduction purposes.

¶5 The easement provided in relevant part that 75 acres of the property was utilized for nursery, 40 acres remained native forest, woodland, and savanna in predominantly natural condition, and 5 acres contained all the buildings. The property possessed “natural and scenic values (collectively ‘Conservation Values’)” that were “of great importance to Grantors, the people

of McHenry County and the people of the State of Illinois.” The “Conservation Purpose” of the easement included the preservation of the conservation values by continuing the land use patterns existing at the time of the grant. The easement expressly prohibited “any activity on or use of the Property inconsistent with the purpose of this Easement.” Amongst other things, it specifically prohibited any alteration of the surface topography and hydrology of the land, any use or activity that causes or is likely to cause significant soil degradation or erosion, and “row cropping of corn, soybeans or other commodity grains”. TLC was to manage the property according to the attached Management Plan, which could be amended or modified. However, no amendment or modification could “materially and adversely affect the conservation purpose” of the Easement. Any modification was required to be in a written instrument signed by the Grantors and Grantees and recorded.

¶6 Following the death of May Beeson, the property was the subject of a lawsuit involving the Beeson siblings, including Mentgen. The suit resulted in a judgment that the easement remain in effect and that the property be listed for sale to the general public. Both the listing and sales prices were to be set and approved by the court, and any sales contract was subject to the court’s acceptance. In April 2015, the court selected defendants Pat Betlinski and Berkshire Hathaway Home Services Starck Real Estate (Berkshire) to list and sell the property and approved a listing price of $724,900.

¶7 Over a year later, in July 2016, Betlinski filed an updated market analysis stating that marketing activity on the property was limited due to the easement’s restrictions on row cropping of corn, soybeans or other commodity grains. According to the opinions of two appraisers, the easement decreased the value of the property by 50 % of current farmland prices, indicating a

current value of $465,000. The court decreased the price to $649,900, and later that year to $599,000.

¶8 In December 2016, Mentgen signed a Disclosure and Consent to Dual Agency, which notified her that Betlinski would be representing defendants Charles F. Dowell and Roxann Dowell as their real estate agent. In 2015, Betlinski had learned that the Dowells were interested in purchasing the property in order to lease it to their son-in-law, defendant Cody Book, to farm row crops, including corn. However, the Dowells were put off by the easement’s prohibition of such farming.

¶9 Later that month, defendant Lisa Haderlein, executive director of TLC met with Book and the Dowells to discuss an Amended Management Plan that would allow Book to row crop the property. Haderlein verbally approved an amended plan that would allow the removal of all the trees in the nursery area, the leveling of the terraces, a buffer around the nursery area to allow the use of large motorized farm equipment, and a cyclical farming plan that allowed row crops if soil erosion was kept within tolerable erosion levels.

¶ 10 The Dowells submitted an offer of $300,000 for the property; negotiations eventually led, on February 2, 2017, to an agreed-upon purchase price of $470,000, subject to the easement and court approval. The easement, including the original Management Plan, was attached to the contract, and the parties initialed every page thereof. Mentgen had no information regarding the approval of the Amended Management Plan and alleged that she would not have agreed to the real estate contract at the sale price had she known of it. Betlinski knew of the amended agreement but never told Mentgen of it. The court approved the real estate contract on February 22. The sale closed on April 5, 2017; the trustee’s deed specifically made the conveyance subject to the easement.

¶ 11 On April 8, Book brought in earth moving equipment and leveled, plowed and tilled the nursery area and planted row corn. On May 1, the TLC board confirmed Haderlein’s approval of the amended management plan.

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