Stevens v. Lyne

District Court, N.D. Illinois·Decided September 3, 2025·No. 1:24-cv-13278·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION PAISLEY LYNE STEVENS,

Plaintiff, No. 24-cv-13278

v. Judge Thomas M. Durkin

EVANS DANIEL LYNE, as Trustee and Beneficiary, AND DEIRDRE LYNE CHURCHILL, as Beneficiary,

Defendants.

MEMORANDUM OPINION AND ORDER This case arises out of Plaintiff’s attempt to invalidate a trust, of which she is a beneficiary. She brings this suit against her siblings Evans Daniel Lyne, as trustee and beneficiary, and Deirdre Lyne Churchill, as beneficiary (collectively “Defendants”). Defendants move to dismiss under Federal Rule of Civil Procedure 12(b)(6). R. 10. For the following reasons, that motion is granted. Background I. Factual Background The following facts are alleged in Plaintiff’s pleading in this case. On April 4, 2012, Dr. Everett Lyne and Dorothy Evans Lyne, the parties’ parents, executed their wills and conveyed a Gull Lake, Michigan property (“the Property”) into a revocable trust (“2012 Trust”), for which Dorothy was the Trustee. R. 1 (“Compl.”) ¶¶ 7, 12–14. The 2012 Trust provided that the Property would be kept and shared by the family or sold with equal division of the proceeds between the siblings. Id. ¶¶ 16–17. Defendant Evans Daniel Lyne (“Daniel”) was named as Dorothy’s agent pursuant to a Power of Attorney (“POA”) and Successor Trustee of the 2012 Trust, and as Dorothy’s Alzheimer’s disease progressed, he began managing her finances and took

a series of actions related to the Property for his own benefit. Id. ¶¶ 21, 26, 33. Daniel conveyed the Property from the 2012 Trust to the Everett Dennis Lyne Revocable Trust in October 2016, and then, acting under POA, to Dorothy individually in April 2020. Id. ¶¶ 22, 24. In July 2020, Daniel conveyed the Property to Dorothy and himself with a right of survivorship and mortgaged the Property. Id. ¶¶ 26, 28. In October 2020, Daniel conveyed his interest in the Property back to Dorothy

individually and then from Dorothy to the Dorothy Lyne 2020 Family Trust (“2020 Trust”), which he had created in April 2020, through defective warranty deeds. Id. ¶¶ 29–31. The 2020 Trust dilutes the interest of any beneficiary who cannot contribute approximately $30,000 per year. Id. ¶¶ 34, 35. It also permits the Trustee to compel payment of required expenses for the Property and provides for further dilution if payment is not made. Id. The 2020 Trust names Daniel as the Trustee, and his

attorney, Lauren Wolven, as Trust Protector. Id. ¶ 36. As Trustee, Daniel has refused to lease the Property; demanded that each of the siblings contribute $30,000 in May 2021 and $35,000 in April 2024 with the threat of dilution; and failed to provide a proper accounting of the assets and liabilities of Dorothy and the 2020 Trust. Id. ¶¶ 43–45, 49–51. Daniel has also used the Property for his own benefit and barred Plaintiff from using the Property except in the winter months. Id. ¶¶ 39–41, 49. II. Procedural History Plaintiff filed a number of actions in the United States District Court for the Northern District of Illinois, the Circuit Court of the Eighteenth Judicial Circuit,

DuPage County, Illinois (“DuPage County Court”), and the Michigan Probate Court between 2022 and 2024 related to the 2020 Trust and/or the Property. A. 2022 Federal Case On November 11, 2022, Plaintiff filed a federal suit alleging that Daniel and Wolven breached various duties in connection with the 2020 Trust. See Paisley Stevens v. Evans Daniel Lyne, et al., No. 22-cv-06308 (N.D. Ill. 2022). She described

how her parents purchased the Property in the 1990s with an intent to keep it in the family for future generations to enjoy, how Dorothy’s Alzheimer’s disease progressed, and how Daniel was given POA. R. 11 at pp. 92–93 ¶¶ 17–27. She alleged that Daniel, with POA, created and signed the 2020 Trust, which was drafted by Wolven as Trust Protector, and deeded the Property into it. Id. at p. 91 ¶¶ 2, 4, 6, pp. 93–94 ¶¶ 28–38. She further asserted that Daniel refused to lease the Property, excluded Plaintiff from using it, and made demands that Plaintiff and the other beneficiaries pay to

support it or else face dilution of their interest, in violation of the terms of the Trust. Id. at pp. 94–98 ¶¶ 39–42, 51, 53, 56–60. She added that 2020 Trust mortgaged the Property, which generated proceeds that were used by Daniel for his personal benefit. Id. at pp. 98–99 ¶¶ 62–65, p. 104 ¶¶ 89–90. Plaintiff concluded with allegations about Dorothy’s incapacitation due to dementia and Daniel’s use of her assets for his own benefit rather than her care. Id. at pp. 104–105 ¶¶ 85–95. Plaintiff sought an accounting of the 2020 Trust, removal and replacement of Daniel and Wolven as Trustee and Trust Protector, the return of any compensation paid to Daniel and Wolven, a refund of amounts paid by beneficiaries to the 2020 Trust, the appointment

of a guardian for Dorothy, termination of Daniel’s POA, and damages. In December 2022, Plaintiff voluntarily dismissed the case. B. 2023 DuPage County Case On September 21, 2023, Plaintiff filed a petition in the DuPage County Court requesting the appointment of a guardian for Dorothy, an accounting of the 2020 Trust, and an inventory of Dorothy’s estate. See In re Estate of Dorothy Evans Lyne,

No. 2023 GR 000364 (Cir. Ct. DuPage County). In that petition, she alleged facts about Dorothy’s incapacitation from dementia. R. 11 at pp. 149–150 ¶¶ 3–4, p. 152 ¶ 30. She also alleged how Daniel created the 2020 Trust and deeded the Property into it; refused to lease or sell the Property to raise funds for Dorothy’s continued care; refused to provide information about Dorothy’s assets and accounts; directed loan proceeds from the 2020 Trust into an account for his benefit; and used the POA to enrich himself and deplete Dorothy’s estate. Id. at 150–52 ¶¶ 8–12, 19–22, 25–28.

After Dorothy passed away on January 28, 2024, the case was dismissed with prejudice. Id. at p. 156. C. 2024 Michigan Case On May 20, 2024, Plaintiff filed a Petition for Instruction Regarding Trust and Removal of Trustee in the Barry County, Michigan Probate Court. See In re: Dorothy Evans Lyne Revocable Trust U/A/D April 4, 2012, No. 2024-29805-TV (“2024 Michigan Case”). Plaintiff alleged, in relevant part: - Everett and Dorothy purchased the Property in the 1990s and expressed a desire to keep the Property in the family for their children and future generations to enjoy. R. 11 at pp. 159–60 ¶¶ 9, 11. - Everett and Dorothy created the 2012 Trust, which provided that the Property was to stay in the family if possible, or be sold or otherwise distributed with each of the siblings receiving a one-third share, and deeded the Property to the trust. Id. at pp. 160–62 ¶¶ 12–17, 19. - Dorothy’s Alzheimer’s disease progressed, and Daniel, with POA and as Successor Trustee, took over her finances. Id. at p. 162 ¶¶ 21–22. - Daniel has used the Property as his own, taken control of Dorothy’s property, and taken out loans in her name or the Trust’s and refused to explain their nature or use. Id. at pp. 162–63 ¶¶ 24–25, 28. - Daniel has refused to let Plaintiff visit the Property or only given her the option of visiting during the winter months. Id. at p. 162 ¶ 27, pp. 166–67 ¶¶ 43, 46, p. 169 ¶ 54. - On April 8, 2020, Daniel, as POA, created and signed the 2020 Trust, which named him as Trustee and Wolven as Trust Protector, and later deeded the Property to the 2020 Trust. Id. at pp. 163–64 ¶¶ 29– 31, p. 165 ¶ 34. - The 2020 Trust eviscerates Dorothy’s intention, as expressed in the 2012 Trust, to keep the Property in the family and distribute sale proceeds equally between the siblings by diluting the interest of beneficiaries who do not contribute to Property-related expenses. Id. at p. 164 ¶¶ 32–33, p. 166 ¶ 41, p.

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