Trzop v. Hudson
43 N.E.3d 178
Ill. App. Ct.2015Background
- 2015 IL App (1st) 150419; Halicki Family Trust created with Zygmunt and Jadwiga as co-trustors and beneficiaries, with 11 successors including four plaintiffs.
- 2007 Declaration named Zygmunt and Jadwiga as initial beneficiaries and trustees, with Anna Hudson and Marian Halicki as successor trustees.
- 2014 Amendment/Restatement reduced beneficiaries to Anna Hudson and Marian Halicki, with Zygmunt as sole surviving trustor and trustee.
- Plaintiffs sued Hudson asserting undue influence, tortious interference with inheritance, fiduciary fraud, and a constructive trust; they sought voiding the amendment and other relief.
- Trial court dismissed for lack of standing; on appeal, court reverses and remands, focusing on standing and procedural posture.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiffs have standing to challenge the trust amendment | Michalak supports standing under original trust | Henry supports lack of standing upon amendment | Plaintiffs have standing; remand for merits |
| Timeliness of intervenor Zygmunt Halicki's 2-619 dismissal motion | Intervenor timely under 2-619(a)(9) | Motion timely and proper | 2-619 motion not timely; dismissal reversed on standing grounds |
| Whether intervenor had standing to dismiss tort counts against Hudson | Intervenor may challenge all trust-related issues | Standing limited to trust interests; cannot dismiss tort claims | Intervenor lacked standing to dismiss tort counts |
| Whether plaintiffs had standing after the amendment removed them as beneficiaries | Amendment invalidates their interest; Michalak controls | Amendment divests plaintiffs; no vested interest | Remand to determine merits; standing remains under Michalak |
Key Cases Cited
- In re Estate of Michalak, 404 Ill. App. 3d 75 (2010) (trust beneficiaries have standing to challenge amendments to inter vivos trusts)
- In re Estate of Richard V. Henry, 396 Ill. App. 3d 88 (2009) (caretaker/executor lacked standing to challenge will disposition; relevance to standing)
- Glisson v. City of Marion, 188 Ill. 2d 211 (1999) (lack of standing as affirmative matter under 2-619(a)(9))
- Reynolds v. Jimmy John's Enterprises, LLC, 2013 IL App (4th) 120139 (2013) (lack of standing proper 2-619(a)(9) defense)
- River Plaza Homeowners' Ass'n v. Healey, 389 Ill. App. 3d 268 (2009) (standing/affect of trust disposition on appeals)
- Poulet v. H.F.O., L.L.C., 353 Ill. App. 3d 82 (2004) (standing; affirmative matter under 2-619(a)(9))