Miller v. Terando

2020 IL App (4th) 180416-U
CourtAppellate Court of Illinois
DecidedApril 22, 2020
Docket4-18-0416
StatusUnpublished

This text of 2020 IL App (4th) 180416-U (Miller v. Terando) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Terando, 2020 IL App (4th) 180416-U (Ill. Ct. App. 2020).

Opinion

NOTICE 2020 IL App (4th) 180416-U FILED This order was filed under Supreme April 22, 2020 Court Rule 23 and may not be cited Carla Bender as precedent by any party except in NO. 4-18-0416 the limited circumstances allowed 4th District Appellate under Rule 23(e)(1). Court, IL IN THE APPELLATE COURT

OF ILLINOIS

FOURTH DISTRICT

GALEN E. MILLER, ) Appeal from the Plaintiff-Appellee, ) Circuit Court of v. ) Piatt County DIANE TERANDO, ) No. 11MR14 Defendant-Appellant. ) ) Honorable ) Wm. Hugh Finson, ) Judge Presiding. ______________________________________________________________________________

JUSTICE HARRIS delivered the judgment of the court. Presiding Justice Steigmann and Justice Knecht concurred in the judgment.

ORDER

¶1 Held: (1) Defendant forfeited any challenge to the trial court’s imposition of a surcharge against her by failing to comply with Illinois Supreme Court Rule 341 (eff. May 25, 2018), as to the form and content of her appellant’s brief.

(2) The trial court did not abuse its discretion in denying defendant’s motion to reopen proofs where defendant could have presented the additional evidence during earlier proceedings.

¶2 Plaintiff, Galen E. Miller, filed a complaint for a declaratory judgment against de-

fendant, Diane Terando, alleging he was the beneficiary of a trust in which she was the trustee and

asking the trial court to order defendant to provide him with an inventory and accounting of her

trust-related activities. The court granted summary judgment in favor of plaintiff and ordered de-

fendant to file an inventory and accounting. Defendant filed an “Accounting” to which plaintiff

objected on the basis that it was not sufficiently detailed. Following an evidentiary hearing on plaintiff’s objections, the court granted plaintiff’s request to assess a surcharge against defendant

for unsupported trust expenditures of $392,519.46. Defendant appeals, challenging the court’s sur-

charge assessment and its denial of a motion she filed to reopen proofs to present the testimony of

an accountant. We affirm.

¶3 I. BACKGROUND

¶4 Plaintiff and defendant are the children of Wanda M. Miller (deceased January 14,

2010) and Paul B. Miller (deceased March 3, 1994). Over the course of their lives, Wanda and

Paul jointly and individually executed multiple trusts, including a trust dated August 15, 1985,

which defendant signed as trustee. The trust provided that the income of the trust would be distrib-

uted by the trustee to Wanda and, upon Wanda’s death to Paul. Upon the deaths of both Wanda

and Paul, the trust principal was to be distributed in equal shares to plaintiff and defendant.

¶5 On April 27, 2011, plaintiff filed a complaint for declaratory judgment against de-

fendant, alleging he was a beneficiary of a trust in which defendant had been appointed “as Suc-

cessor Trustee.” Plaintiff alleged that as beneficiary he was entitled to information regarding the

trust, including an inventory of trust assets and their estimated values, and an accounting of the

trust balance from the date of Wanda’s death “until present.” Plaintiff further asserted that although

he had requested trust-related documents from defendant, she had failed to provide any documents

to him.

¶6 On June 17, 2015, plaintiff filed an amended complaint for declaratory judgment,

alleging he was a beneficiary of additional trusts established by the parties’ parents, including the

August 1985 trust. He also alleged that defendant “acted as [t]rustee of at least one of the [t]rusts,”

asserting she filed fiduciary income tax returns in 2005, opened bank accounts and signed checks

-2- in the capacity of a trustee, “recorded an Appointment of Successor Trustee” for one of the trusts,

and acted as trustee of one of the trusts in the sale of her parents’ personal residence. Again, plain-

tiff asserted that he requested information regarding the trusts from defendant but that she had

failed to provide the information to him.

¶7 Defendant filed an answer to plaintiff’s complaint, denying that she failed to pro-

vide plaintiff with documents in satisfaction of his request. As an affirmative defense, she asserted

that an actual controversy did not exist because she had provided plaintiff with all necessary in-

formation.

¶8 On July 27, 2015, plaintiff filed a motion for summary judgment, alleging there

was no dispute as to the material facts in the case and he was entitled to judgment as a matter of

law. On September 18, 2015, the trial court granted plaintiff’s motion and ordered defendant to

file, within 60 days, “an inventory and an accounting of all monies received and disbursed by her

as trustee.”

¶9 On December 4, 2015, plaintiff filed a petition for adjudication of indirect civil

contempt. He alleged defendant had not filed an inventory or accounting as ordered by the trial

court and that her failure to comply with the court’s September 2015 order was willful and without

just cause. Plaintiff asked that the court require defendant to purge herself of contempt by com-

plying with the court’s order.

¶ 10 On December 30, 2015, counsel for both parties appeared before the trial court.

Defendant’s counsel represented that defendant would comply with the court’s September 2015

order within 21 days. The court’s docket entry shows that it gave defendant until February 17,

2016, to provide “the ordered materials” and that if they were not filed, she would be “arraigned

-3- on the contempt petition.”

¶ 11 On January 20, 2016, defendant filed a document titled “ACCOUNTING,” which

contained a list of 15 bank accounts from three different banks. She also provided documents

showing the deposits, withdrawals, and balances for those accounts. Defendant’s filings indicated

the bank accounts were associated with the “Wanda MILLER TRUST.”

¶ 12 On February 16, 2016, plaintiff filed an objection to defendant’s accounting and

supplement to his December 2015 petition for adjudication of indirect civil contempt, alleging

defendant “did not include a proper Inventory” in her filing. Specifically, he asserted defendant

failed to set forth the date she became trustee; identify the assets in the trust at the time she became

trustee; explain the origin of trust property; explain how trust money was spent from accounts that

had “final withdrawal” entries; identify the purpose of various expenditures, including expendi-

tures to her husband and children; provide “source documents,” such as bank statements, cancelled

checks, paid receipts, invoices, and bills; explain activities she undertook with respect to Wanda’s

residence; and account for insurance policies or annuities funded by the “Wanda Miller Trust.”

¶ 13 Plaintiff asked the trial court to hold defendant in indirect civil contempt until she

provided a proper accounting and inventory of assets. Alternatively, in the event defendant asserted

she could not provide further documentary details, he asked the court to enter a surcharge order in

the amount of $481,744.37, “representing the aggregate unsupported expenditures in the Account-

ing without proper identification and documentation.” On April 20, 2016, plaintiff amended his

objection, requesting that the trial court award him half of a 6.3-acre parcel of land that defendant

represented “was covered by the [t]rust or [t]rusts” at issue.

¶ 14 On June 1, 2016, the trial court conducted a hearing on plaintiff’s objections to

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2020 IL App (4th) 180416-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-terando-illappct-2020.