Scarpelli v. McDermott Will & Emery LLP

2018 IL App (1st) 170874, 117 N.E.3d 238, 426 Ill. Dec. 821
CourtAppellate Court of Illinois
DecidedJune 27, 2018
Docket1-17-08741-17-1011 cons.
StatusUnpublished
Cited by11 cases

This text of 2018 IL App (1st) 170874 (Scarpelli v. McDermott Will & Emery LLP) 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
Scarpelli v. McDermott Will & Emery LLP, 2018 IL App (1st) 170874, 117 N.E.3d 238, 426 Ill. Dec. 821 (Ill. Ct. App. 2018).

Opinion

JUSTICE FITZGERALD SMITH delivered the judgment of the court, with opinion.

*824 ¶ 1 Following the filing of individual and amended complaints by plaintiffs-appellants Frank J. Scarpelli Jr. and Margaret Scarpelli (plaintiffs or as named), defendant-appellee McDermott Will & Emery LLP (McDermott) filed a motion to dismiss them both pursuant to section 2-615 of the Code of Civil Procedure (Code) ( 735 ILCS 5/2-615 (West 2016) ). The trial court granted defendant's motion with prejudice, based on the attorney litigation privilege. Plaintiffs appeal, contending that the trial court should not have applied the attorney litigation privilege to this cause as it does not cover prelitigation conduct, does not apply to the type of conduct they allege occurred, and leaves them with no recourse. 1 They ask that we reverse the trial court's dismissal of their claims with prejudice and for other relief this court deems fair and just. For the following reasons, we affirm.

¶ 2 BACKGROUND

¶ 3 This cause involves multiple underlying cases principally involving Frank, his wife Margaret, Anne-Marie Poincelet, and McDermott, Anne-Marie's attorney. However, the focus of the instant appeal revolves around intrusion upon seclusion claims brought separately by Frank and Margaret against McDermott and consolidated *242 *825 by our court. Anne-Marie is not a party to this appeal.

¶ 4 Frank and Anne-Marie are cousins. Their extended family developed several businesses, including many property companies and apartment complexes, with their principal place of business in Carpentersville, Illinois (Kane County). Frank worked for these family businesses. In 1994, Frank began helping Anne-Marie's mother, his aunt Pamela Poincelet, with the management of her personal properties and financial affairs. Eventually, Pamela formed two trusts. She named Frank as trustee of both of them, and she named Anne-Marie as her beneficiary. In subsequent years, Pamela named Frank as her agent and gave him power of attorney over her health care as well as her property. Pamela died in 2011, leaving Anne-Marie as her heir. Frank became the executor of Pamela's estate and, after her death, continued to act as trustee of her two trusts.

¶ 5 In early 2015, Anne-Marie confronted Frank and Margaret about missing funds in Pamela's accounts and trusts. Anne-Marie believed Frank and Margaret had misappropriated millions of dollars from them and used the proceeds for their personal benefit. The day after this confrontation, Frank was terminated from his employment at the family businesses. The locks in the offices were changed and Frank was not permitted to enter his office or the businesses' premises, where he kept various documents regarding Margaret and their personal affairs. Anne-Marie hired McDermott to represent her in investigating and potentially pursuing litigation concerning Frank and Margaret's alleged misappropriation. Frank hired attorney James Tunick to represent him. 2

¶ 6 In March 2015, McDermott contacted Tunick to set up a meeting between Frank, Margaret, and Anne-Marie to discuss the missing money and attempt to settle the matter. A meeting was arranged for March 19, 2015, at McDermott's office. On that day, Frank and Margaret, along with Tunick, arrived at McDermott's building. According to Frank and Margaret's complaints, they were met by a man and escorted to a small room, where they met another man who was introduced to them as an "ex-FBI agent." While in this room with the door closed, the "ex-FBI agent" frisked Frank by patting him down and, with Margaret's permission, searched her purse. The men then escorted Frank, Margaret, and Tunick into a large conference room, where several McDermott attorneys were waiting for them. On the conference room table were stacks of documents, including drafts of deeds with legal descriptions of every property and home Frank and Margaret owned, trust papers, letters of direction, and assignments listing Frank and Margaret's banking institutions and bank account numbers.

¶ 7 During the meeting, Frank and Margaret were presented with a document drafted by McDermott, titled "Tolling & Asset Management Agreement" (Asset Agreement). This document stated that Frank and Margaret had the benefit of counsel of their choice and had been offered the opportunity to review the agreement with him, that Anne-Marie had certain potential legal claims against them for diversion or dilution of funds, that Frank and Margaret met with forensic accountants and admitted wrongdoing, and that the parties were exploring the possibility of settling these potential claims following a full accounting. The Asset Agreement prescribed that Frank and Margaret *243 *826 agreed not to "distribute, expend, or transfer any real or personal property" until all such claims were resolved to Anne-Marie's satisfaction. To effectuate this, the Asset Agreement provided that Frank and Margaret would put many of their assets, cash, and real property into two trusts: the Frank Scarpelli 2015 Special Trust, with Frank and Tunick as cotrustees, and the Margaret Scarpelli 2015 Special Trust, with Margaret and Tunick as cotrustees. It further provided that Anne-Marie would exercise certain supervisory controls over these trusts, including the power to veto any sale, exchange, or distribution of any trust asset; the power to appoint trustees; and the power to remove trustees without cause at any time. Finally, the Asset Agreement stated that Frank and Margaret agreed to pay all of Anne-Marie's costs in the matter, including attorney fees, investigative fees, and forensic accountant fees. Frank and Margaret were also given a copy of a document, titled "Verified Complaint," and told that someone from McDermott was waiting at the courthouse with instructions to file it if they did not immediately sign the documents in the conference room. With Tunick present, both Frank and Margaret signed all the documents presented to them that day, including the Asset Agreement.

¶ 8 Several months later, in October 2015, Anne-Marie, individually and as beneficiary and trustee of Pamela's trusts, filed a cause of action in the circuit court of Cook County against Frank and Margaret for breach of the Asset Agreement and for theft. McDermott represented Anne-Marie in the cause.

¶ 9 In response, in November 2015, Margaret filed a separate cause of action in the circuit court of Kane County against Anne-Marie and McDermott. In December 2015, Frank did the same, filing a substantially similar (but separate) cause of action in that same court against Anne-Marie and McDermott. Count I of their complaints was asserted against Anne-Marie only and sought declaratory judgment that the documents from the March 19 meeting were invalid and unenforceable because Frank and Margaret signed them under duress.

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Scarpelli v. McDermott Will & Emery LLP
2018 IL App (1st) 170874 (Appellate Court of Illinois, 2019)

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Bluebook (online)
2018 IL App (1st) 170874, 117 N.E.3d 238, 426 Ill. Dec. 821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scarpelli-v-mcdermott-will-emery-llp-illappct-2018.