Pavela v. Malone

556 N.E.2d 678, 198 Ill. App. 3d 960, 145 Ill. Dec. 60, 1990 Ill. App. LEXIS 672
CourtAppellate Court of Illinois
DecidedMay 14, 1990
DocketNo. 1—88—3522
StatusPublished
Cited by13 cases

This text of 556 N.E.2d 678 (Pavela v. Malone) 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
Pavela v. Malone, 556 N.E.2d 678, 198 Ill. App. 3d 960, 145 Ill. Dec. 60, 1990 Ill. App. LEXIS 672 (Ill. Ct. App. 1990).

Opinion

JUSTICE CAMPBELL

delivered the opinion of the court:

Petitioner, James A. Pavela, appeals from an order entered by the circuit court granting summary judgment in favor of respondent Florence M. Malone, executor of the estate of Martin J. Malone, and dismissing petitioner’s cause of action with prejudice. Petitioner had sought: (1) a declaratory judgment that sections 18—3 and 18—12 of the Probate Act of 1975 (the Act) (Ill. Rev. Stat. 1987, ch. 110½, pars. 18—3, 18—12) violated the due process clause of the Federal and Illinois constitutions, and (2) leave to file his motion to suggest the death of Martin J. Malone and to substitute the independent executor of Malone’s estate as a defendant in a pending shareholders’ derivative action. On appeal, petitioner contends that: (1) he has standing to challenge the constitutionality of sections 18—3 and 18—12 of the Act, and (2) sections 18—3 and 18—12 of the Act violate his constitutional right to due process.

The record indicates that prior to his death, Martin J. Malone was president, director and majority shareholder of Creative Office Interiors, Inc. (Creative). Petitioner was a shareholder of Creative. On March 8, 1985, petitioner filed a stockholders’ derivative action on Creative’s behalf, alleging that Martin J. Malone and others had breached their fiduciary duty to Creative. On December 21, 1986, during the pendency of the derivative action, Malone died testate. Malone’s will named his wife, Florence (respondent), as independent executor and bequeathed Florence his entire estate.

Pursuant to section 18—3 of the Act, respondent published notice of Malone’s death on January 15, 22 and 29, 1987, in the Chicago Daily Law Bulletin. The notice indicated that letters of office had been issued on January 12, 1987, and that any claim against the estate had to be filed within six months of that date.

Thereafter, on March 12, 1987, Creative’s annual shareholders’ meeting was held. Present at the meeting were respondent, petitioner, their respective attorneys, and James Flynn, secretary of Creative. At the meeting, Flynn confirmed that respondent had been named independent executor of Malone’s estate, that Malone’s 1,500 shares of Creative stock had been transferred to respondent pursuant to Malone’s will and that the shares would be probated with his estate. Respondent, petitioner and two other individuals were then elected directors of Creative. Additional business was discussed which is not of record.

On August 26, 1987, petitioner filed his motion to suggest the death of Martin Malone and to substitute respondent, the independent executor of Malone’s estate, as a defendant in the shareholders’ derivative action. On November 4, 1987, petitioner’s motion was denied on the ground that the six-month statutory claim period set forth in section 18 — 12 of the Act had expired. Malone was then dismissed as a party defendant to the shareholders’ derivative action.

Thereafter, petitioner filed a motion for reconsideration, predicated on Tulsa Professional Collection Services, Inc. v. Pope (1988), 485 U.S. 478, 99 L. Ed. 2d 565, 108 S. Ct. 1340, which held that due process required that reasonably ascertainable creditors of an estate “be given ‘[njotice by mail or other means as certain to ensure actual notice.’ ” (485 U.S. at 491, 99 L. Ed. 2d at 579, 108 S. Ct. at 1348, quoting Mennonite Board of Missions v. Adams (1983), 462 U.S. 791, 800, 77 L. Ed. 2d 180, 188, 103 S. Ct. 2706, 2712.) Petitioner argued that because he was a known claimant of Malone’s estate who had been given only publication notice, he had been denied due process and his original motion to substitute the independent executor should have been granted. In an order dated July 27, 1988, the trial court continued petitioner’s motion for reconsideration to enable petitioner to present the question regarding the constitutionality of sections 18—3 and 18—12 of the Act to the probate court.

On August 4, 1988, petitioner filed in the probate court a “verified petition for a declaratory judgment that sections 18—3 and 18—12 of the Probate Act violate the due process clause and for leave to file a claim herein.” In his petition, petitioner alleged the chronology of events up to that time, including an allegation that he had first learned of the statutory claim date in August 1987 when respondent responded to his motion to substitute. Petitioner further alleged that pursuant to Tulsa, sections 18—3 and 18—12 of the Act violate the due process provisions of the Federal and Illinois constitutions. Petitioner requested a declaration that sections 18—3 and 18—12 of the Act were unconstitutional and further requested leave to file a claim regarding the shareholders’ action. The probate court granted petitioner leave to file his petition. Respondent then moved for summary judgment, which was granted. In entering summary judgment, the trial court declined to rule on the issue of constitutionality and predicated its determination on the fact that petitioner and his attorney had had actual notice of Malone’s death within the six-month claim period and, therefore, lacked standing to bring a claim alleging the unconstitutionality of sections 18—3 and 18—12 of the Act. Petitioner appealed.

The purpose of summary judgment is to render expeditious judgment on questions of law after first deciding that no genuine issue as to any material fact exists between the parties. (Kusiciel v. La Salle National Bank (1982), 106 Ill. App. 3d 333, 435 N.E.2d 1217.) In the present case, there is no dispute as to the facts underlying the cause of action. Rather, the sole issue before this court is whether, as a matter of law, petitioner had received actual notice of the claim period, thereby denying him standing to allege that the publication notice provisions of sections 18—3 and 18—12 of the Act are unconstitutional.

In Mennonite Board of Missions v. Adams (1983), 462 U.S. 791, 800, 77 L. Ed. 2d 180, 188, 103 S. Ct. 2706, 2712, the Supreme Court held that, “Notice by mail or other means as certain to ensure actual notice is a minimum constitutional precondition to a proceeding which will adversely affect the liberty or property interests of any party, whether unlettered or well versed in commercial practice, if its name and address are reasonably ascertainable.” In determining whether notice given in a particular circumstance is sufficient to “ensure actual notice,” the Supreme Court has looked at four factors (actual notice factors): (1) whether the form of notice relies on mere chance to reach the attention of the other party (Mullane v. Central Hanover Bank & Trust Co. (1950), 339 U.S. 306, 94 L. Ed. 2d 865, 70 S. Ct. 652); (2) whether the form of notice is designed to attract the attention of the other party (Mennonite Board of Missions, 462 U.S. 791, 77 L. Ed. 2d 180, 103 S. Ct. 2706); (3) whether the actual means of providing notice is reliable (Greene v.

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Cite This Page — Counsel Stack

Bluebook (online)
556 N.E.2d 678, 198 Ill. App. 3d 960, 145 Ill. Dec. 60, 1990 Ill. App. LEXIS 672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pavela-v-malone-illappct-1990.