Stallard v. U.S. National Bank Ass'n

2025 IL App (3d) 240585-U
CourtAppellate Court of Illinois
DecidedAugust 12, 2025
Docket3-24-0585
StatusUnpublished

This text of 2025 IL App (3d) 240585-U (Stallard v. U.S. National Bank Ass'n) 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.

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Stallard v. U.S. National Bank Ass'n, 2025 IL App (3d) 240585-U (Ill. Ct. App. 2025).

Opinion

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

2025 IL App (3d) 240585-U

Order filed August 12, 2025 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

KATHRYN STALLARD and BARBARA ) Appeal from the Circuit Court ARONSON, derivatively and on behalf of the ) of the 18th Judicial Circuit, Family Trust created under the Restatement of ) Du Page County, Illinois, the Lewis Leonard Stallard Declaration of Trust ) Created May 24, 1986, ) ) Petitioners-Appellants, ) ) v. ) Appeal No. 3-24-0585 ) Circuit No. 23-CH-232 U.S. BANK NATIONAL ASSOCIATION, ) d/b/a U.S. Bank Private Wealth Management, ) as Trustee for the Restatement of the Lewis ) Leonard Stallard Declaration of Trust Created ) May 24, 1986, ) Honorable ) Bryan S. Chapman, Respondent-Appellee. ) Judge, Presiding. ____________________________________________________________________________

PRESIDING JUSTICE BRENNAN delivered the judgment of the court. Justices Peterson and Davenport concurred in the judgment. ____________________________________________________________________________

ORDER

¶1 Held: The trial court did not err in dismissing petitioners’ second amended petition for accounting and breach of fiduciary duty. Affirmed. ¶2 Petitioners, Kathryn Stallard and Barbara Aronson, derivatively and on behalf of the family

trust, appeal the trial court’s dismissal of their two-count petition for accounting and breach of

fiduciary duty against the respondent trustee of the family and marital trusts, U.S. Bank. For the

reasons set forth below, we affirm.

¶3 I. BACKGROUND

¶4 The following facts are derived from the pleadings. Lewis and Betty Stallard were married

in 1978, at which time Lewis had three adult children from a prior relationship (including Kathryn

Stallard and Barbara Aronson), and Betty had four adult children from a prior relationship.

¶5 On January 27, 1993, Lewis executed the Restatement of the Lewis Leonard Stallard

Declaration of Trust Created May 24, 1986 (restatement). According to the restatement, upon

Lewis’s death and in the event Betty survived him, two sub-trusts were to be created: a family trust

and a marital trust.

¶6 The family trust was to be administered as follows. First, 20% of the family trust was to be

immediately distributed to Lewis’s children. Second, 20% of the family trust was to be held in

trust for five years, during which time Betty was to receive the income therefrom, and after which

the remaining principal was to be distributed to Lewis’s children. Third, the remaining 60% of the

family trust was to be held with the income therefrom paid to Betty and the principal being

available to her for her reasonable support and health only after the principal of the marital trust

was exhausted. The family trust was to terminate upon Betty’s death, with the principal and

accrued or undistributed net income thereof to be equally divided amongst Lewis’s children.

¶7 From the marital trust, the trustee was to pay Betty “all the net income” and “as much

principal thereof” as requested by Betty in writing. Upon Betty’s death, if occurring at least three

2 months after Lewis’s death, the remaining principal and accrued or undistributed income not

effectively appointed by Betty’s will was to be added to the family trust.

¶8 Lewis died on January 5, 1994. The family trust was funded with $600,000, and the marital

trust was funded with $93,734. Following Lewis’s death, U.S. Bank (f/k/a Firstar Trust Company

of Illinois), served as the successor trustee of both the family trust and the marital trust.

¶9 On February 22, 1994, Edward Bozett, who served as the original trust officer, sent a letter

to Kathryn enclosing, inter alia, a list of the assets held prior to funding the sub-trusts. Fred Moore

subsequently replaced Bozett as the trust officer, and, on April 12, 1994, Kathryn sent Moore a

letter requesting that each beneficiary of the sub-trusts receive periodic notifications for the status

of the trusts, which she later defined as “transactions, changes in value of the trust, changes in fee

structure, changes in trust officers assigned to manage the trust, etc.” On May 15, 1994, Kathryn

sent another letter to Moore wherein she expressed her disappointment that she had not received a

response until the day prior with an accounting statement for the marital trust. Kathryn expressed

further concern that she had not received an accounting for the family trust, and again requested

the same and “any explanation that is appropriate to explain any transactions, changes, etc. in the

trust ***.”

¶ 10 On June 1, 1994, Timothy Kadlec, a trust investment officer, sent Kathryn a letter

informing her that Moore was no longer the trust officer and that Gary Martin would be responsible

for the trust administration until a suitable replacement was found. Kadlec enclosed accounting

statements for the family trust, noting that Kathryn was a primary beneficiary. On June 8, 1994,

Steve Davidson, Kathryn’s husband, sent a letter to Kadlec outlining his concern that the family

and marital trusts were underfunded and certain monies were unaccounted for. On November 1,

1994, Betty sent a letter to Kathryn stating, inter alia, “It is scary to see what is happening with

3 our trusts and I, like you, hope they get someone else in the trust dept. I wish they would get Ed

Bozett back but I doubt that he would come back even if they offered the job.”

¶ 11 A letter dated August 1995 from Kathryn to Laura Dudley, then-vice president, thanked

Dudley for an updated trust report and letter of introduction. Kathryn expressed that she was

“pleased that the trust seem[ed] to be in order.” She requested, inter alia, that copies of tax filings

be sent along with the quarterly reports. On August 9, 1995, Dudley responded that they were

unable to provide a copy of tax information to each beneficiary or remainderman unless there was

a specific reason to do so, explaining that their tax department prepared taxes for over 5,000 trust

accounts.

¶ 12 Betty died on March 10, 2023, without appointing any remaining balance of the marital

trust in her will. Shortly thereafter, Kathryn e-mailed the then-trust officer, Ann Hucek Burress,

requesting information about the marital trust. Burress responded that it would “take some

digging,” considering it had been 28 years. She stated, “I wish you had questioned the account at

any time during the past several years after you stopped receiving statements for that account.”

Burress continued,

“The only thing we can do [i]s to hope that the fiduciary tax area still has files from that

long ago, as our records drop off of our trust accounting system much sooner than that.

Especially if an account was closed twenty-some years ago, files may no longer be in

existence. However, I did contact the fiduciary tax division and will be curious to hear what

information they may have. I will certainly let you know what I learn.”

Kathryn replied that they never received any reports for the marital trust and that they assumed the

“technical legal structure” limited its reporting to Betty. On May 4, 2023, Burress wrote,

4 “There is no Marital Trust. We have checked tax records, and bank records, and there is no

Marital Trust.

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