In re Marriage of Difiglio
65 N.E.3d 524
| Ill. App. Ct. | 2016Background
- Petitioner filed for dissolution of marriage against respondent; Stanislawa later joined Malmstedt as a third party in the dissolution action.
- Malmstedt, James's brother-in-law and power of attorney, allegedly received over $575,000 from sale of Buchunter Transport, marital property.
- Malmstedt moved to dismiss for lack of personal jurisdiction; trial court denied.
- Malmstedt claimed no Illinois acts and invoked fiduciary shield doctrine; he is a California resident.
- Trial court found a fiduciary relationship due to the power of attorney and control of marital assets; Stanislawa's third-party complaint proceeded.
- Appellate court affirmed denial of dismissal, holding Illinois long-arm statute and due process supported jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Illinois long-arm 2-209(a)(10) support jurisdiction over Malmstedt? | Malmstedt acquired control of assets in Illinois; action arose from that control. | No Illinois acts; fiduciary shield precludes jurisdiction. | Yes; jurisdiction exists under 2-209(a)(10). |
| Is jurisdiction consistent with due process given Malmstedt's contacts with Illinois? | Malmstedt traveled to Illinois, engaged in transactions, and maintained communications with Illinois residents. | Minimal or no connections; acts were not purposeful availment of Illinois. | Yes; minimum contacts exist; due process satisfied. |
Key Cases Cited
- Powers v. Poplar Grove State Bank, 218 Ill. App. 3d 509 (1991) (long-arm jurisdiction liberally construed to include asset-related claims)
- Mandalay Associates Limited Partnership v. Hoffman, 141 Ill. App. 3d 891 (1986) (broad jurisdictional reach allowing dismissal on alternative grounds)
- Hoffman v. City of Carbondale, 141 Ill. App. 3d 889 (1986) (minimum contacts and purposeful availment standard for due process)
- Nesby v. Country Mutual Insurance Co., 346 Ill. App. 3d 564 (2004) (standard of review for denial of jurisdiction is de novo)
- Rollins v. Ellwood, 141 Ill. 2d 244 (1990) (due process and long-arm analysis in Illinois)
- Brown v. Refuel America, Inc., 652 S.E.2d 389 (N.C. Ct. App. 2007) (example of asset-based jurisdiction for nonresidents)
- Norton v. Bridges, 712 F.2d 1156 (7th Cir. 1983) (trustee responsibility and assets located within state)