Peacock v. Scranton

2023 IL App (4th) 230249-U
Appellate Court of Illinois·Decided October 18, 2023·No. 4-23-0249·Unpublished

Opinion

NOTICE 2023 IL App (4th) 230249-U This Order was filed under FILED

Supreme Court Rule 23 and is NO. 4-23-0249 October 18, 2023 not precedent except in the Carla Bender limited circumstances allowed 4th District Appellate under Rule 23(e)(1). IN THE APPELLATE COURT Court, IL

OF ILLINOIS

FOURTH DISTRICT

ROBERT PEACOCK, as Executor of the Estate of ) Appeal from the Ruth Maxine Peacock, ) Circuit Court of Plaintiff-Appellant, ) Brown County v. ) No. 17P4 MARGARET SCRANTON, )

Defendant-Appellee. ) Honorable ) Robert K. Adrian,

) Judge Presiding.

JUSTICE TURNER delivered the judgment of the court.

Justices Zenoff and Doherty concurred in the judgment.

ORDER

¶1 Held: (1) The trial court’s determination that (a) checks written to cash by the agent under a power of attorney and (b) checks signed by the principal to the agent and her family as gifts were not fraudulent was not against the manifest weight of the evidence and (2) the court did not abuse its discretion in awarding attorney fees based on a contingency-fee agreement instead of the attorney’s hourly rate.

¶2 In November 2010, decedent, Ruth Maxine Peacock, executed a power of attorney, naming her niece, defendant Margaret Scranton, as her agent. Plaintiff, Robert Peacock, Ruth’s son and executor of her estate, was present. Between that time and Ruth’s death in May 2015, Ruth signed checks as gifts to Scranton and her family totaling $52,000. Scranton signed checks as gifts to herself and her family totaling $38,000. Scranton also signed checks made out to cash totaling $22,000.

¶3 In January 2017, Robert filed a petition seeking to recover assets, which was later amended several times. Ultimately, in an amended complaint, Robert alleged Scranton breached

her fiduciary duty by writing fraudulent checks to benefit her own interests, and he sought to recover the value of those assets on behalf of the estate.

¶4 After a lengthy period of litigation followed by a bench trial, the trial court found Scranton liable for the checks she signed consisting of gifts to herself and her family. However, as to the other checks, the court found them not fraudulent, observing Ruth was competent to write the checks she personally signed, and the checks written to cash were for Ruth’s use for everyday financial transactions and to pay a caregiver. Robert sought attorney fees and costs in the amount of $97,639.25 based on his attorney’s hourly rate. However, the court, noting the existence of a contingency-fee arrangement, awarded $19,842.33 in fees, representing one-third of the total award to the estate, and $828.50 in costs.

¶5 On appeal, Robert contends the trial court erred in determining the checks signed by Ruth and the checks written to cash were proper and in failing to award fees based on his attorney’s hourly rate. We affirm.

¶6 I. BACKGROUND

¶7 In November 2010, Ruth executed a power of attorney naming Scranton as her agent. Ruth died on May 31, 2015. Her will named Robert as executor of her estate and divided the estate equally between Robert and Scranton.

¶8 On November 2, 2017, Robert filed an amended complaint seeking to recover assets he alleged Scranton fraudulently obtained using the power of attorney, including checks signed by Ruth as gifts to Scranton and her family, checks signed by Scranton as gifts to herself and her family, and checks signed by Scranton for cash. Judge Amy C. Lannerd initially presided over the proceedings. However, Judge Robert K. Adrian presided over the bench trial and the attorney fee proceedings.

¶9 In September 2018, Robert moved for summary judgment, arguing the checks were written for Scranton’s benefit and were presumed fraudulent. Scranton responded with evidence Ruth routinely provided gifts to family members and was competent to do so. She also provided evidence Ruth routinely paid cash for daily expenses and to pay a caregiver. The trial court denied the motion, finding a presumption of fraud arose, but Scranton presented evidence rebutting the presumption. Thus, the court found there was a genuine dispute as to material facts.

¶ 10 In July 2022, a bench trial was held. Evidence at trial showed, when the power of attorney was arranged, Ruth, Robert, and Scranton were all named as signatories on Ruth’s checking account. Scranton assisted Ruth with her finances and arranged for her personal care. The power of attorney granted Scranton the power to make financial transactions. It did not authorize Scranton to make gifts, and a section that would have allowed for additions to her powers, including the power to make gifts, stated there were no additions.

¶ 11 Robert testified he approved of the use of a power of attorney for Scranton to assist Ruth with her finances. Robert stated Scranton handled everything with the finances because he did not have time due to his work. Between the date of the execution of the power of attorney and Ruth’s death, Robert usually called Ruth once per week and often visited on Sundays. They did not discuss her finances. After Ruth’s death, Robert discovered he was no longer named on Ruth’s checking account and could not gain access to it. When he inquired with Scranton, she said Ruth wanted him removed from the account. She also said Ruth did not have much money. After Robert filed suit, he discovered Ruth had investment accounts of which he had not been aware.

¶ 12 Robert also discovered checks made out to Scranton and members of her family while Scranton was the named power of attorney. While various numbers appear in the record, on appeal, the parties do not dispute that checks totaling $52,000 were signed by Ruth and given to Scranton and her family members as gifts. However, it appeared Scranton prepared the information on the checks. That total also included a check made out to the Brown County Historical Society, an organization Robert testified Scranton was very involved with. Checks totaling $38,000 written as gifts were signed by Scranton. Robert also found checks totaling $22,000 signed by Scranton made out to cash. Robert identified three checks written in 2010 and 2011 totaling $425 as Christmas gifts to him and his family. Ruth also gifted him $30,000 in 1999 for three special needs children he and his wife adopted. She also wrote a check to Robert for $3000 on another occasion, but he could not recall why.

¶ 13 Robert testified about an incident in 2010, shortly after the power of attorney was executed, during which Scranton asked him what they should do about Christmas gifts because Ruth did not have much money. Robert told her his family did not need gifts. He also recounted an incident after Ruth’s death during which Scranton suggested leaving the grandchildren out of Ruth’s obituary because Ruth did not have much money. The record indicates the grandchildren were included in the obituary but not individually named. On cross-examination, Robert admitted he did not discuss finances with Ruth and was not aware of the charities to which Ruth gave donations. He also admitted he did not perform tasks for Ruth or assist with her personal care during the time Scranton was Ruth’s agent under the power of attorney.

Free access — add to your briefcase to read the full text and ask questions with AI

Peacock v. Scranton, 2023 IL App (4th) 230249-U (Ill. Ct. App. 2023).

2023 IL App (4th) 230249-U (Peacock v. Scranton) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

In Re Marriage of Magnuson
510 N.E.2d 437 (Appellate Court of Illinois, 1987)
Myers v. Popp Enterprises, Inc.
576 N.E.2d 452 (Appellate Court of Illinois, 1991)
Berlak v. Villa Scalabrini Home for the Aged, Inc.
671 N.E.2d 768 (Appellate Court of Illinois, 1996)
Foutch v. O'BRYANT
459 N.E.2d 958 (Illinois Supreme Court, 1984)
Blankenship v. Dialist International Corp.
568 N.E.2d 503 (Appellate Court of Illinois, 1991)
Collins v. Hurst
736 N.E.2d 600 (Appellate Court of Illinois, 2000)
LaHood v. Couri
603 N.E.2d 1165 (Appellate Court of Illinois, 1992)
Seymour v. Collins
2015 IL 118432 (Illinois Supreme Court, 2015)
Spring Valley Nursing Center v. Allen
2012 IL App (3d) 110915 (Appellate Court of Illinois, 2012)
Seymour v. Collins
2015 IL 118432 (Illinois Supreme Court, 2015)
Clark v. Clark
76 N.E.2d 446 (Illinois Supreme Court, 1947)
In re Guardianship of Spinnie
2016 IL App (5th) 150564 (Appellate Court of Illinois, 2016)
Alford v. Shelton (In Re Estate of Shelton)
2017 IL 121199 (Illinois Supreme Court, 2017)
In re Estate of Shelton
2017 IL 121199 (Illinois Supreme Court, 2018)
Collins v. Noltensmeier
2018 IL App (4th) 170443 (Appellate Court of Illinois, 2018)
Collins v. Noltensmeier
2018 IL App (4th) 170443 (Appellate Court of Illinois, 2018)