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In re Marriage of Campbell
2017 IL App (2d) 170171
| Ill. App. Ct. | 2018
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Background

  • Pamela (petitioner) obtained a dissolution judgment requiring Donald to pay child support; arrearages accrued and the court found a $15,005.42 past-due child support balance in July 2012.
  • Pamela recorded a statutory lien for unpaid child support and related charges against Donald’s Chicago property (held in an Illinois land trust) in June 2012, claiming $24,530 (and certifying she mailed notice to Donald).
  • Donald died in July 2013; his mother Janet (successor beneficiary/executor) later sought to sell the property and discovered Pamela’s recorded lien, which blocked the sale.
  • Janet moved to release the lien, arguing the lien was not properly attached to a beneficiary’s interest in a land trust (an intangible/personal property interest) and that perfection required a citation to discover assets served on trustee and beneficiary.
  • The trial court granted Janet’s motion, concluding Pamela had not perfected the lien under section 2-1402 and ordering release; the court later escrowed $24,530 pending appeal.
  • The appellate court reversed: it held section 505(d) of the Dissolution Act creates liens by operation of law against both real and personal property of the obligor, so Pamela’s recorded lien was valid; remanded to determine the correct recoverable amount.

Issues

Issue Plaintiff's Argument (Pamela) Defendant's Argument (Janet) Held
Whether Pamela’s recorded lien for past-due child support was valid and required additional "perfecting" steps (citation to discover assets) to attach to Donald’s interest in a land trust Pamela: statutory lien under 750 ILCS 5/505(d) arises by operation of law against all property; recording and notice to Donald was sufficient—no separate citation to trustee required Janet: Donald only held a beneficial (personal property) interest in a land trust; to attach that intangible interest, creditor must serve a citation to discover assets (735 ILCS 5/2-1402(k-10)) on trustee and beneficiary to perfect lien Held: Reversed trial court. Section 505(d) creates a lien against real and personal property by operation of law; no additional citation/third-party service was required here. Pamela’s lien was valid; remand to quantify entitlement.
Effect of Donald’s death and successor beneficiary’s rights (whether lien extinguished or not) Pamela: lien survives; successors take the beneficial interest subject to encumbrances Janet: at oral argument contended Donald’s interest (personal property) extinguished at death so lien not effective against successor beneficiary Held: Court treats this contention as forfeited (not raised on appeal) and notes Probate Act principles indicate successor takes subject to encumbrances; lien remained viable.

Key Cases Cited

  • First Federal Savings & Loan Ass’n of Chicago v. Pogue, 72 Ill. App. 3d 54 (Illinois Appellate Court) (beneficial interest in an Illinois land trust is personal property)
  • IMM Acceptance Corp. v. First Nat’l Bank & Trust Co. of Evanston, 148 Ill. App. 3d 949 (Illinois Appellate Court) (beneficial-interest transfers in land trusts can be subject to statute of frauds principles)
  • People v. Chicago Title & Trust Co., 75 Ill. 2d 479 (Illinois Supreme Court) (beneficiary treated as owner for some purposes, e.g., real estate taxation)
Read the full case

Case Details

Case Name: In re Marriage of Campbell
Court Name: Appellate Court of Illinois
Date Published: Jan 10, 2018
Citation: 2017 IL App (2d) 170171
Docket Number: 2-17-0171
Court Abbreviation: Ill. App. Ct.