In re Marriage of Campbell
2017 IL App (2d) 170171
| Ill. App. Ct. | 2017Background
- Pamela (petitioner) and Donald Campbell divorced; Donald was ordered to pay child support and provide life insurance; arrearages accrued and court found $15,005.42 past-due support as of July 2012 and set monthly support at $1,012.
- Pamela recorded a lien on property held in a Chicago land trust (Donald as beneficiary) for $24,530 (increasing monthly) for unpaid child support/medical premiums and mailed notice to Donald.
- Donald died in July 2013; his mother Janet (executor and subsequent beneficiary) attempted to sell the property and discovered Pamela’s recorded lien, which impeded sale.
- Janet moved to release the lien, arguing (1) Pamela had no court order authorizing recording of the claimed $24,530 amount, (2) Donald held only a beneficial (personal property) interest in the land trust so the lien was improperly recorded without a citation to discover assets, and (3) the Du Page clerk’s account showed no arrearage.
- The trial court granted Janet’s motion, concluding Pamela had not perfected the lien (requiring a citation under section 2‑1402), then later required Janet to escrow $24,530 pending appeal; Pamela appealed.
Issues
| Issue | Plaintiff's Argument (Pamela) | Defendant's Argument (Janet) | Held |
|---|---|---|---|
| Whether a statutory child‑support lien under 750 ILCS 5/505(d) was properly imposed on property held in a land trust | 750 ILCS 5/505(d) creates a lien by operation of law against all real and personal property of the obligor; recording the lien and notifying Donald was sufficient | Beneficial interest in a land trust is personal property; to attach that interest one must perfect via a citation to discover assets under 735 ILCS 5/2‑1402(k‑10) and serve trustee | Reversed trial court: section 505(d) creates a lien against all property “notwithstanding any other law,” so Pamela’s recorded lien was valid without a separate citation to the trustee in these circumstances |
| Whether the nature of Donald’s interest (beneficial interest vs. real property) defeats Pamela’s lien | Beneficiary retains all attributes of ownership except title; lien under section 505(d) applies regardless of characterization | Beneficial interest is intangible personal property and requires different perfection steps | Court: nature of interest is irrelevant to existence of lien under section 505(d); lien attached to Donald’s property despite land‑trust structure |
| Whether Pamela needed to serve a citation to discover assets on trustee to perfect her lien | No—section 505(d) creates the lien by operation of law and displaces contrary state law requiring citation/service | Yes—section 2‑1402 normally required to create lien on beneficial interest; mere recording was insufficient | Court: citation would be redundant here; recording provided constructive notice and section 505(d) preempts additional steps |
| Whether the trial court properly released the lien and whether the lien amount must be adjudicated | Pamela contends the lien was valid and amount requires determination; recording and notice suffice | Janet contends lien improper and/or extinguished on Donald’s death | Court reversed release and remanded to determine correct amount Pamela may recover under the valid lien |
Key Cases Cited
- First Federal Savings & Loan Ass’n of Chicago v. Pogue, 72 Ill. App. 3d 54 (beneficial interest in Illinois land trust is personal property)
- IMM Acceptance Corp. v. First Nat’l Bank & Trust Co. of Evanston, 148 Ill. App. 3d 949 (beneficiary treated as owner of res for some purposes)
- People v. Chicago Title & Trust Co., 75 Ill. 2d 479 (beneficiary is “owner” of real estate for taxation purposes)
- Schak v. Blom, 334 Ill. App. 3d 129 (citation to discover assets creates lien on debtor’s interest in land trust when properly served)
- Skidmore, Owings & Merrill v. Pathway Financial, 173 Ill. App. 3d 512 (recording gives constructive notice and affects lien priority)
- Bennett v. Chicago Title & Trust Co., 404 Ill. App. 3d 1088 (limitations on treating beneficiary interest as real property in certain contexts)
- In re Estate of Crooks, 266 Ill. App. 3d 715 (constraints on conveying beneficial interests by quitclaim deed)