Peacock v. Scranton

2023 IL App (4th) 230249-U
CourtAppellate Court of Illinois
DecidedOctober 18, 2023
Docket4-23-0249
StatusUnpublished

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

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.

-2- ¶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.

-3- ¶ 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.

¶ 14 One of Ruth’s caregivers, Linda Hill, testified she worked as a certified nursing

assistant for Ruth from 2010 until Ruth’s death. Linda said Ruth confided in her and once or

twice a month would be upset about something.

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2023 IL App (4th) 230249-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peacock-v-scranton-illappct-2023.