Sajdak v. Sajdak

586 N.E.2d 716, 224 Ill. App. 3d 481, 166 Ill. Dec. 758, 1992 Ill. App. LEXIS 9
CourtAppellate Court of Illinois
DecidedJanuary 10, 1992
DocketNos. 1—88—1727, 1—89—3035, 1—90—0725 cons.
StatusPublished
Cited by14 cases

This text of 586 N.E.2d 716 (Sajdak v. Sajdak) 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
Sajdak v. Sajdak, 586 N.E.2d 716, 224 Ill. App. 3d 481, 166 Ill. Dec. 758, 1992 Ill. App. LEXIS 9 (Ill. Ct. App. 1992).

Opinion

PRESIDING JUSTICE EGAN

delivered the opinion of the court:

The defendant, Loretta Sajdak, appeals from an order entered in favor of the plaintiff, her brother, Henry Sajdak, in a suit brought by Henry Sajdak over property left to the parties by their mother, Bernice Sajdak; she appeals from an order granting the plaintiff $10,000 attorney fees as sanctions for untrue pleadings pursuant to section 2 — 611 of the Code of Civil Procedure (Ill. Rev. Stat. 1983, ch. 110, par. 2—611); and she also appeals from an award of attorney fees to her former attorney, Arnold Landis. Landis has filed a cross-appeal maintaining that the award of attorney fees was insufficient.

The complaint alleged that the plaintiff was the owner of a 40% beneficial interest in the property and the defendant was the owner of a 60% beneficial interest. The defendant occupied one of two apartments on the property, and she collected rents for the second apartment. He maintained in count I that he was entitled to an accounting from the defendant for all rents and profits received from the date of his mother’s death. In count II he alleged that approximately three years after his mother’s death he and the defendant entered into a land trust agreement which, he maintained, created a partnership between him and the defendant, the purpose of which was to carry on the business of renting apartments in the property. He asked that the partnership be dissolved and the property sold and that he receive 40% of the proceeds of the sale.

The defendant filed an answer in which she denied that the plaintiff was entitled to an accounting; she maintained affirmatively that the rental income she received had been used for payment of the real estate taxes; gas, electric and water bills; and the upkeep, maintenance and repairs of the property. In response to the complaint for a dissolution of a partnership she alleged that her mother, Bernice Sajdak, was of unsound mind when she executed the amendment to the land trust which granted the plaintiff a 40% interest. She also denied the existence of a partnership. In his reply, the plaintiff denied that Bernice Sajdak was of unsound mind and that she lacked the legal capacity to execute the amendment to the land trust.

The defendant filed a counterclaim in which she alleged that under the terms of the land trust originally created by her mother, the defendant was the sole contingent beneficiary. She was to receive the entire beneficial interest in the land trust from her mother because the defendant had taken care of her mother for a period of years and had used her own resources to maintain and improve the property. She alleged that in reliance on the representations of her mother, she took care of her mother and paid all expenses on the property which exceeded approximately $50,000. She further alleged that the plaintiff “surreptitiously and without knowledge” of the defendant obtained the amendment to the land trust which granted the plaintiff 40% beneficial interest when at the time of the execution of the amendment, her mother was of unsound mind and memory. The counterclaim asked that the amendment be declared invalid and that the court impress a lien against the real estate on behalf of the defendant in the amount of approximately $50,000.

After a trial, the judge held that a partnership existed between the plaintiff and the defendant; he ordered that the partnership be dissolved and the partnership property, consisting of the beneficial interest in the land trust, be sold. The judge also approved an accounting prepared by the plaintiff, requiring the defendant to pay to the plaintiff 40% of the rents from the second-floor apartment, along with 40% of the reasonable rental value of the first-floor apartment which had been occupied by the defendant. He granted the defendant a 10% deduction from the award due the plaintiff. The deduction represented a credit given the defendant for management services. The judge denied the defendant’s counterclaim. A sale of the property was held, and the defendant purchased the property for $190,000; she paid the plaintiff $76,000, his 40% share of the sale price.

The plaintiff filed a motion pursuant to section 2 — 611 of the Code of Civil Procedure for attorney fees and sanctions. (Ill. Rev. Stat. 1983, ch. 110, par. 2—611.) He alleged that the defendant had falsely pleaded that the plaintiff was not the owner of a 40% share of the beneficial interest in the land trust and that the defendant had falsely denied the existence of a partnership between the plaintiff and herself. The procedure followed in the pursuit of the claim for sanctions is involved and confusing. For the sake of brevity, we will discuss the petition for sanctions in more detail later.

Arnold Landis, who had represented the defendant during a portion of the trial until she dismissed him, also filed a fee petition. The judge denied the defendant’s motion to dismiss the petition and ordered the defendant to pay Landis $5,213.15.

We turn now to the facts. In 1959, Bernice Sajdak purchased a lot located at 6146 North Meade in Chicago, and had a two-flat building constructed on the property. Bernice’s two children, the defendant and the plaintiff, lived with her in the first-floor unit of the building, and the second-floor apartment was rented. The defendant contributed almost $8,000 toward the purchase of the building; the plaintiff made no contribution to the purchase price.

In 1963, the plaintiff married and moved out of the building. In 1973, however, the plaintiff, a Chicago firefighter, had the utility bills for the building placed in his name to support his claim that he was a Chicago resident. He did not pay any of the utility bills for the building, nor did he contribute to the payment of real estate taxes or insurance on the property.

On February 10, 1975, Bernice executed a land trust agreement with Chicago Title & Trust Company, naming herself as sole beneficiary and naming the defendant as the sole contingent beneficiary upon Bernice’s death. On April 29, 1980, Bernice amended the land trust, naming both the plaintiff and the defendant as successor beneficiaries. The amendment to the trust agreement indicated that, upon Bernice’s death, the defendant would receive a 60% share of the beneficial interest in the land trust, and the plaintiff would receive a 40% share.

Bernice Sajdak died on February 13, 1982. That same day, the plaintiff and the defendant opened a joint savings account at Norwood Federal Savings & Loan Association; a deposit of $1,500 was made into the account. The record does not indicate whose money was used to make the deposit. The defendant’s attorney stated in oral argument that the original deposit was made by the defendant. Deposits and withdrawals were made from the account until the account was closed by the defendant on January 4, 1983, without notice to the plaintiff. During Bernice’s lifetime, the defendant contributed to the expenses of and improvements to the building. After Bernice’s death, the defendant managed the property and paid $11,139 in capital improvements and expenses for the property.

On March 11, 1982, the plaintiff and the defendant executed an acceptance of transfer of the beneficial interest in the land trust, which gave the defendant a 60% share and the plaintiff a 40% share.

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Cite This Page — Counsel Stack

Bluebook (online)
586 N.E.2d 716, 224 Ill. App. 3d 481, 166 Ill. Dec. 758, 1992 Ill. App. LEXIS 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sajdak-v-sajdak-illappct-1992.