Schlosser v. Schlosser

578 N.E.2d 1203, 218 Ill. App. 3d 943, 161 Ill. Dec. 557, 1991 Ill. App. LEXIS 1465
CourtAppellate Court of Illinois
DecidedAugust 30, 1991
Docket1-90-0606
StatusPublished
Cited by12 cases

This text of 578 N.E.2d 1203 (Schlosser v. Schlosser) 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
Schlosser v. Schlosser, 578 N.E.2d 1203, 218 Ill. App. 3d 943, 161 Ill. Dec. 557, 1991 Ill. App. LEXIS 1465 (Ill. Ct. App. 1991).

Opinion

JUSTICE EGAN

delivered the opinion of the court:

The plaintiffs, John K. Schlosser and David P. Schlosser, are the sons of Frank Schlosser and the grandchildren of Mildred Schlosser, who died in 1985. She had created an inter vivos trust in 1981 naming her son, Rudolph 0. Schlosser, Jr., as trustee. The beneficiaries of the trust are Rudolph’s children. The plaintiffs brought suit to set aside the trust alleging that in 1976 Mildred Schlosser had executed a will which divided her estate into equal shares for her two sons, Frank and Rudolph, and their decedents. The suit also alleged that Mildred lacked the mental capacity to know and understand the nature and effect of the trust instrument and that the trust instrument was executed through the undue influence of Rudolph Schlosser. The caption of the complaint did not specify that Rudolph Schlosser was being sued as trustee. The trust beneficiaries were not named as defendants.

The defendant was served by abode service on January 20, 1987. He failed to appear or answer within 30 days of service, and a default order was entered on March 12, 1987. Judging from the absence of any motion in the record, we conclude that the default was entered without notice to the defendant. On the same day another order provided for a “prove-up” on April 24,1987.

On April 10, 1987, attorney Manfred Walke filed a motion to dismiss the complaint on behalf of the defendant. A hearing was set for May 28 on the motion to dismiss; the order setting the hearing date also provided for a briefing schedule. Again judging from the absence of any motion in the record and the absence of the plaintiffs’ attorney in court, we conclude that that order was entered without notice to the plaintiffs’ attorney. On April 24, the plaintiffs’ attorney asked for a continuance on the “prove-up” hearing until May 28. Neither the defendant nor Walke was present on that date. The record does not show whether any notice of the prove up date had been given them.

On May 28, 1987, neither Walke nor the defendant was present in court. The judge ruled that because there had been no appearance filed by the defendant, the motion had been “improperly filed” and would not be considered. He also heard evidence and entered an order setting aside the trust and ordering the trustee to account for all of the assets of the deceased which had come into his possession. The judge also added language under Supreme Court Rule 304(a) (107 Ill. 2d R. 304(a)) stating, “There is no just reason to delay the enforcement of this order or an appeal therefrom.”

On April 14, 1988, the plaintiffs’ complaint was dismissed for want of prosecution. The plaintiffs filed a motion to vacate the order of dismissal, but the motion was not served upon the defendant because, as the plaintiffs maintained, Circuit Court Rule 2.1 does not require service upon a party in default. On April 28, 1988, the judge vacated the order of dismissal.

On July 20, 1988, Manfred Walke was disbarred by the Illinois Supreme Court. Walke did not notify the defendant of his disbarment.

On April 13, 1989, the case was again dismissed for want of prosecution; however, the dismissal was again vacated without notice to the defendant, and the lawsuit was reinstated on May 3, 1989. On May 31, 1989, the plaintiffs’ attorney sent a letter to Albert I. Zemel of the firm of Zemel & Shapiro, who had apparently written to the plaintiffs’ attorney on May 25, 1989. The plaintiffs’ attorney explained that a default judgment had been entered in May 1987.

On October 25, 1989, Zemel & Shapiro filed a petition for leave to intervene on behalf of the beneficiaries of the trust and a petition on behalf of the defendant and the beneficiaries to vacate the default judgment entered on May 28, 1987.

On January 30, 1990, the judge granted the plaintiffs’ motion to strike and dismiss the defendant’s petition to intervene and petition to vacate. The judge found that the petition had been filed more than two years after the default order and, therefore, the defendant could not attack the judgment pursuant to section 2 — 1401 of the Illinois Code of Civil Procedure. (Ill. Rev. Stat. 1989, ch. 110, par. 2 — 1401.) On February 26, 1990, the judge denied the intervening petitioners’ motion to reconsider the January 30, 1990, order.

The petitioners advance several grounds for reversal of the judgment: The beneficiaries of the trust were necessary parties and, therefore, failure to name them as parties renders the judgment void; the plaintiffs lacked standing to sue; the trial judge abused his discretion in ruling that their claim was time barred; the two-year limitation does not apply to a void judgment; and the two-year limitation period was tolled because one of the beneficiaries was a minor and because the plaintiffs fraudulently concealed the judgment. The petitioners have also argued that the judgment is not a bar to the defense by the trustee because the caption of the complaint did not identify the defendant as a trustee, but rather it named him as an individual.

We hold without extensive discussion that the failure to name the defendant as a trustee in the caption is not material. The body of the complaint makes it clear that the action is brought against the defendant as a trustee. (See Tarpoff v. Karandjeff (1959), 17 Ill. 2d 462, 162 N.E.2d 1; Novak v. Thies (1980), 89 Ill. App. 3d 991, 412 N.E.2d 666.) In like manner, we reject the petitioners’ claim that the plaintiffs fraudulently concealed the judgment. The petitioners did not properly raise the argument in the trial court. We have examined the specific parts of the record to which the petitioners have directed us and conclude that they do not allege a claim for fraudulent concealment.

The principal issue is whether the beneficiaries were necessary parties. The plaintiffs agree that, if they were, the judgment is void. If the judgment is void, the two-year limitation of section 2— 1401(c) of the Code of Civil Procedure does not bar relief. Village of Franklin Park v. Ogilvie (1982), 106 Ill. App. 3d 301, 435 N.E.2d 1177.

The plaintiffs argued in the trial court and in this court that a beneficiary of a trust is never a necessary party. That argument is at odds with pronouncements of our supreme court in Illinois National Bank v. Gwinn (1945), 390 Ill. 345, 61 N.E.2d 249, and Village of Lansing v. Sundstrom (1942), 379 Ill. 121, 39 N.E.2d 987. In both cases the court held that beneficiaries of a trust are necessary parties to an action to foreclose their interest. However, as noted in Village of Lansing, beneficiaries are not necessary parties if their interests are represented by others so that they receive actual and efficient representation, or the beneficiaries are so numerous that the delay and expense of naming them are oppressive and burdensome. Neither exception is applicable in this case.

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Bluebook (online)
578 N.E.2d 1203, 218 Ill. App. 3d 943, 161 Ill. Dec. 557, 1991 Ill. App. LEXIS 1465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schlosser-v-schlosser-illappct-1991.