Singer v. Brookman

578 N.E.2d 1, 217 Ill. App. 3d 870, 160 Ill. Dec. 822, 1991 Ill. App. LEXIS 1237
CourtAppellate Court of Illinois
DecidedJuly 19, 1991
Docket1-89-1808, 1-89-2530 cons.
StatusPublished
Cited by59 cases

This text of 578 N.E.2d 1 (Singer v. Brookman) 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
Singer v. Brookman, 578 N.E.2d 1, 217 Ill. App. 3d 870, 160 Ill. Dec. 822, 1991 Ill. App. LEXIS 1237 (Ill. Ct. App. 1991).

Opinion

JUSTICE McNULTY

delivered the opinion of the court:

This appeal results from the dismissal with prejudice of plaintiffs’ two-count complaint against their mother for an accounting and breach of fiduciary duty. The trial judge in the chancery proceeding dismissed the complaint under sections 2 — 615 and 2— 619(a)(4) of the Code of Civil Procedure on the grounds of res judicata and insufficiency of the complaint to state a cause of action. (Ill. Rev. Stat. 1983, ch. 110, pars. 2 — 615, 2 — 619(a)(4).) He also entered sanctions in the amount of $9,174.30 against plaintiff David Singer and his attorneys pursuant to Supreme Court Rule 137 (134 Ill. 2d R. 137). Both plaintiffs appeal the dismissal of their complaint, and David Singer and his attorneys appeal the subsequent award of sanctions.

On April 6, 1987, Larry Singer (plaintiffs’ father), filed a petition in the domestic relations division requesting the issuance of a rule to show cause against Maureen Singer (plaintiffs’ mother), based' on Ms. Singer’s alleged failure to supply him with David and Jonathan’s checking account information on a regular basis as required by the supplemental judgment to the dissolution of marriage. The petition also sought a “full and regular accounting” of the plaintiffs’ earnings since the entry of the judgment for dissolution. Although it was argued that such accounting was justified by virtue of the Uniform Transfers to Minors Act (the UTMA) (Ill. Rev. Stat. 1985, ch. HQNz, par. 270), at no time were pleadings introduced specifically alleging a violation of the UTMA.

The trial court determined that Ms. Singer had a duty to account for the children’s income and expenditures beginning at the time of the initial judgment for dissolution of marriage (May 1, 1984), but that the obligation not to use the earnings for nonbusiness purposes began with the supplemental judgment and imposed “a new and higher responsibility with regard to the expenditures.” After an evidentiary hearing and a complete accounting of all income received, the rule to show cause was denied, as the court found that Ms. Singer had furnished all necessary documentation. However, it was determined that Ms. Singer had allowed some use of the plaintiffs’ funds for their non-business-related expenses.

Based on this accounting, the trial judge calculated the amount of the funds which had been used for nonbusiness expenses and ordered that these funds be paid back to the children, and set up a payment plan for that purpose. No appeal was taken from this order of March 23, 1988.

On October 19, 1988, plaintiffs Jonathan and David Singer, by and through the same attorneys who had represented their father in the post-decree proceedings, filed a two-count complaint in chancery seeking an accounting from 1983 forward, and alleging that their mother had used their funds in various checking, saving and investment accounts (opened under the UTMA) for improper purposes. Count I of the complaint sought an accounting of all monies earned and all expenditures made from the custodian accounts since 1983 pursuant to section 20 of the UTMA. (Ill. Rev. Stat. 1985, ch. 1101/2, par. 270.) Count II alleged a breach of fiduciary duty on the part of the mother by intentionally depleting the custodial accounts, and sought damages in an unspecified amount and punitive damages in the amount of $25,000.

On June 9, 1989, the trial judge in the chancery proceeding granted defendant’s motions to dismiss plaintiffs’ complaint under section 2 — 619 based upon res judicata and collateral estoppel. He also granted defendant’s motions to strike and dismiss under section 2 — 615 based on technical defects in plaintiffs’ complaint. He further granted defendant’s request for sanctions under section 2— 611 in the amount of $9,174.30, as he found the action was objectively unreasonable by every standard, “unsound both legally and factually, frivolous and vexatious, mean spirited and vindictive.”

The doctrine of res judicata (section 2 — 619(a)(4) of the Illinois Code of Civil Procedure (Ill. Rev. Stat. 1983, ch. 110, par. 2— 619(a)(4))) requires a dismissal with prejudice where an action is barred by a prior judgment. In order for this doctrine of preclusion by prior judgment to apply, there must be an identity of parties or their privies, identity of the cause of action and subject matter, and a final judgment on the merits in the earlier suit. Best Coin-Op, Inc. v. Paul F. Ilg Supply Co. (1989), 189 Ill. App. 3d 638, 545 N.E.2d 481.

The first element to be established for a finding of res judicata, is identity of parties. Either the parties in the first action must be identical to the parties in the second action, or they must be in privity with each other, that is, have the same legal rights or interests. In the case at hand, the parties are not identical. The first action involved Larry Singer and Maureen Singer. The second action concerned Jonathan and David Singer and Maureen Brookman (formerly Maureen Singer). However, Larry Singer’s legal rights and interest in the first action are the same as plaintiffs’ rights and interests in the action at hand. In his post-decree petition, Mr. Singer sought and received an accounting of his children’s income and earnings from May 1984 to the present. While Mr. Singer’s rights to such an accounting did accrue pursuant to the dissolution of marriage and the supplemental judgment, his only legal interest in these funds is the same as that of his children, the plaintiffs in the present lawsuit. Mr. Singer had no personal stake in the income of the children, and his sole interest in determining how the monies were in fact used was to protect the interest of his children in those monies. Since the plaintiffs’ interests in the present action are in the use of their income and earnings by their mother, the defendant in both actions, they are indeed the exact same interests as those of Mr. Singer in the prior action, necessitating a determination of privity between Mr. Singer and his children, Jonathan and David.

Plaintiffs argue that the chancery court’s finding of privity is improper based upon the Illinois Supreme Court’s decision in Simcox v. Simcox (1989), 131 Ill. 2d 491, 546 N.E.2d 609. In Simcox, the supreme court considered the issue of whether a subsequent paternity suit brought by a child was barred by a determination of paternity in the dissolution proceeding between her parents. The court held that children are not privies of their parents in dissolution proceedings and, as such, are not bound by findings of paternity in 'such proceedings unless they are parties to the proceedings. (Simcox, 131 Ill. 2d at 497.) The court reasoned that a child’s interests were not properly represented in the dissolution proceeding, and therefore, the court’s decision could not be binding on the child. This case is distinguishable from Simcox, as it does not seek to establish privity with a parent with respect to an issue central to the dissolution itself (such as paternity), in which parent and child may have conflicting interests, but only as to an agreement (the accounting provisions of the supplemental judgment) which was set up solely to benefit the children themselves, and which provided for enforcement by the parent.

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Cite This Page — Counsel Stack

Bluebook (online)
578 N.E.2d 1, 217 Ill. App. 3d 870, 160 Ill. Dec. 822, 1991 Ill. App. LEXIS 1237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/singer-v-brookman-illappct-1991.