*1 6—2(d) (West 2004) (postsecondary opportunities encouraged 5/3 — §405.20(a)(1)(D), possible”); “wherever 20 Ill. Adm. as amended Code (eff. 1994) (adult-division Reg. February 14, provisions postsecondary educational shall include education “where possible”).
Courts are not to intervene in matters within the discretion of DOC, including may proctor correspondence- whether a staff member such, ruling plaintiffs’ request course exams. As on allow a staff proctor correspondence-course scope member to exams exceeds the authority. the trial court’s plaintiffs right proctored correspondence-course
Because had no exams, by entering injunction the trial court abused its discretion below, and we reverse.
Reversed. JJ., STEIGMANN, concur.
TURNER and PARIS, BANK OF as Trustee of the La Fern L. CITIZENS NATIONAL Trust; Trust; Blackman as Trustee of the Ettoile Davis as Trustee Trust, Fund; Gladys Ruth Cook Memorial and as Trustee of the Stratton et INC., al., UNITED, Defendant-Appellant. Plaintiffs-Appellees, v. KIDS HOPE Fourth District No. 4—08—0162 Opinion Argued August filed November 2008. 2008. KNECHT, J., dissenting. *2 (argued) II, Nelson,
David C. Nelson and E. of Lee Waite both Dilsaver & Mattoon, appellant. of for Kash, (argued), Kash, Paris, appellees.
Richard M. Jr. of Fruin & for JUSTICE COOK delivered the of the opinion court: 1960s, grantors In the La Fern L. Blackman and Ettoile Davis each Edgar executed a trust that benefitted the County Children’s (the Home). Home The Blackman trust stated that the Home would continue to receive income from the trust until the Home “ceased to operate or exist.” The Davis trust stated that the Home would continue to receive income from the trust until the Home ceased to “present function in its capacity.” In the Home (Hudel- defendants, Hudelson Family Children’s Home and Services son), (Kids United, now named Hope Kids Hope). Inc. In plaintiffs trustee, (the Bank), Citizens National Bank of Paris petition filed a instructions, for seeking a determination gifts that the to the Home lapsed because the Home “ceased to exist” and ceased to function “present in its capacity” following the merger. Hope, Kids the continuing entity following merger, argued that the gifts should not lapse and it should continue to receive income from the trusts. Both the Bank and filed for judgment. The court granted summary Bank, that, to the finding as set forth in (805 (Act) section Corporation Business Act of 1983 5/11.50(a)(2) (West 2006)), ILCS the restrictive conditions that each respective testator placed gift on her came to pass. We reverse and remand.
I. BACKGROUND A. Relevant History the Home and Kids Hope The Home incorporated was in the State of Illinois in 1898. Pursu- ant original charter, to its it was established as an institution for the education of dependent County, Illinois, in Edgar children exercise the custody and maintenance of such children provide and to permanent homes for them in approved private families. In Paris, Il- this on Eads Avenue building purpose
Home erected a linois. Home’s articles of 15, 1980, an amendment August
On changed object providing incorporation welfare[,] health, youth in fields of to children and “services Illinois, including multi-treatment and education in the State of boys and emotionally handicapped programs for and educational centers, day treatment races in residential treatment girls of all related services, family, and such other counseling services to necessary from time to time auxiliary services as are or desirable property, to own or lease establish accomplish purposes; these centers, homes, schools[,] and maintain residential treatment required.” other facilities to become a residential purpose allowing the Home
This was for receive throughout the State and to resource for children placement actually operat- ceased funding. It is unclear whether state operated in a or whether ing orphanage as a traditional mission for some time. akin to the broader manner as the corporation, known not-for-profit created a The Home (the Fund), Fund, Paris, Illinois to hold Home Endowment Children’s property, pieces various and finances. property the Home’s Avenue, into the were transferred property on Eads including Fund. *3 to a 2003, pursuant with Hudelson 1, the Home July
On [the “guaranteed Hudelson agreement, In the merger agreement. the surround- Edgar children in and working mission of Home’s] 2005, the real estate March will be continued.” On ing counties February On to Hudelson. Fund was transferred owned thereafter, Shortly Hope.” to “Kids changed its name Hudelson was sold on June property closed. This facility on Eads Avenue County in the Edgar estate in to own real Hope 2006. Kids continues from estates. farmland it received of two tracts of form approved serve as Edgar County in who has families Hope in abused and to some minors offers services homes. Kids foster in appear who representatives has Edgar County and neglect cases court. County juvenile Edgar Trust and
B. Blackman Will and left a last will 11, 1967. She July died on La Fern L. Blackman part: pertinent 23, 1961. The will states July dated testament may that I farm land any and all bequeath and give, “I devise DAVIS, for sister, my ETTOILE my death to the time of own at only ***. natural life during her my DAVIS, farm sister, all of my ETTOILE After the death PARIS, BANK OF to THE NATIONAL go land is to CITIZENS *** farm Paris, Illinois, From the income of said as trustee ***. (25%) twenty-five cent thereof give per said shall land trustee ***and the remain- EMBARRASS the Trustees of the CEMETERY (75%) given to net income is to be ing seventy-five per cent of said Paris, Illinois, HOME, they the EDGAR COUNTY CHILDREN’S event either they for said home. In the to use the same as deem best cease to or ex- organizations or both should aforesaid ist, portion por- said or then said bank as trustee is to distribute organization organiza- or tions of said net income to such charitable added.) worthy money.” (Emphasis it said tions as deems Davis and Trust C. Will will, dated April Ettoile Davis died on 1971. She also left a part: in pertinent December 1968. The will states devise, may give, any “I and all farm land that I bequeath *** *** own, my death, at the time of Bank as trustee ***. disposed The net income from the above mentioned land is to be of as follows: (25%) Twenty-five cent OF THE EMBAR- per to the TRUSTEES *** seventy-five
RASS cent remaining per CEMETERY ***. (75%) given of said net income is to be to THE EDGAR COUNTY HOME, Paris, Corporation, CHILDREN’S an Illinois Illinois. In the organizations event either shall cease to aforesaid function present capacity, part then the of the trust fund which would gone organization equally have to this shall be divided between FIRST METHODIST CHURCH OF PARIS MEMORIALFOUNDA- INC., TION, THE EDGAR OF THE AMERI- COUNTY CHAPTER SOCIETY, CAN CANCER and THE EDGAR COUNTY HEART added.) (Emphasis ASSOCIATION.” History
D. Procedural On December in its status as trustee of the La Fern L. Trust, Trust, Blackman the Ettoile Davis and several other trusts not party to appeal, petition this the Bank filed a for instructions. I, trust, count concerning Blackman the Bank stated it believed the Home court “ceased to exist.” The Bank asked the trial exist, so, determine if sought whether not the Home ceased to “pursuant instruction doctrine” as to where to distribute ‘cy-pres’ Black- 75% of the annual net income of the Blackman which *4 bequeathed man to the Home. II,
In stated it concerning again count the Davis the Bank believed the Home had ceased to exist. The Bank asked the trial court exist, so, if to determine whether or not the Home had ceased to sought approval authority to distribute 75% of the annual net
income of the Davis trust to the First Methodist Church of Paris Foundation, Inc.; Edgar County Chapter Memorial the of the American Society; Edgar County equally. Cancer and the Heart Association 5, 2007, April Hope response On Kids filed its to the for petition denying purposes instructions the Home ceased to exist for of receiv- ing 9, 2007, the trust July incomes from the trusts. On the Bank filed 10, 2007, summary judgment. July Hope a motion for On Kids filed a summary judgment, parties agreed motion for and the filed an state- arguments ment of facts. The trial court held no oral on either motion summary judgment. 13, 2007, August On the trial court sent a the set- parties letter to In ting against Hope. forth its decision favor of the Bank and Kids will, relation to the court had Blackman found “ceased (now merger Hope). to exist” as a result of its with Hudelson Kids Act, The court cited section which states: “(2) separate corporations parties plan existence of all consolidation, except surviving corpora- or new 5/11.50(a)(2)(West2006). tion, shall cease.” 805 ILCS found, will, The court further in relation to the Davis the Home ceased to function as it did at the time of the testators’ death when it building on Eads Avenue closed. The Hope with Kids and when trusts, Bank, and Davis court ordered the as trustee of the Blackman beneficiary provisions the successor proceed accordance with trusts, Distribution under the other three not a respective their wills. party appeal, cypres to this would be in accord with the doctrine. 29, 2007, filed an order based on the
On October the trial court found, order, Supreme “pursuant court’s letter. In the the court (210 304), just delaying Rule 304 Ill. 2d R. there is no reason for Court involving I appeal” regard either enforcement or to “count involving II the ET L. TRUST and count [sic] LAFERN BLACKMAN TOILE DAVIS TRUST.” filed a motion after Hope
On November Kids motion, for a Hope In Kids asked the trial court nonjury in a case. summary judgment and to vacate rehearing on the Bank’s motion for hearing held a on this mo- summary judgment. its order of The court February order dated February tion on 2008. an continue to receive Hope was not entitled to again court found Kids the Home had or Davis trust because income from the Blackman This followed. appeal ceased to exist.
II. ARGUMENT granting court erred in contends the trial and Davis’s gift both Blackman’s regard the Bank in judgment to
1089
gift. “Summary judgment
proper
pleadings, depositions,
is
where the
admissions,
file,
to
light
and affidavits on
viewed in the
most favorable
nonmoving party,
genuine
any
the
reveal there is no
issue as to
mate
moving party
judgment
rial fact and the
is entitled to
as a matter of
law.”
Farm Mutual Automobile Insurance Co. v. Illinois Farmers
State
(2007).
1096,
Co.,
Insurance
Ill. 2d
1099
226
875 N.E.2d
entry
Whether the
of
is a matter
appropriate
was
Farm,
400,
appeal.
reviewed de novo on
A. Blackman’s Trust: Summary Judgment Proper Was on the
Ground That the Home “Ceased To Exist”? 1. General Rule: Not Cause Merger Lapse Does To Gift In regard to whether Kids continue to income Hope should receive trust, from Blackman’s Kids contends that the trial court should (805 general rule, have relied on the in set forth both statute ILCS 5/11.50(a)(4) (West 2006)) (In Fuller, in and common law re Estate of App. 460, 464-65, (1973)), 10 Ill. 3d 294 N.E.2d 316 that merger of two charities typically bequest does not cause a to either of original lapse. charities to (a)(1) Act, (a)(4),
Section 11.50 of provide subsections and pertinent part: *** “(1) The several corporations parties plan merger of *** single corporation, shall be a corporation which[ ] is that
designated in the plan merger surviving corporation of as the ***. is$ :¡í ^
(4)
surviving
corporation
Such
thereupon
new
shall
and
immunities,
possess
rights, privileges,
all the
thereafter
***
***
franchises,
merging
corporations;
each
and all
***
real,
property,
mixed,
personal,
every
and all and
other
interest,
belonging
of or
corporations
to or due to each of the
so
***
merged
shall be taken and deemed to be
to
transferred
vested in
single corporation
such
without further act or deed ***.”
added.)
(a)(4) (West2006).
5/11.50(a)(l),
(Emphases
805 ILCS
The
bequest
not-for-profit corpora
Fuller court held that a
to a
tion running
hospital
lapse
corporation merged
a
did not
when that
into a
corporation
operate
hospital
similar
that continued to
together
Fuller,
hospital.
with another
3d at
294
App.
316;
Trimmer,
N.E.2d
at
see also In re Estate
29
3d
App.
Ill.
(1975) (not
330
finding
legacy
N.E.2d
a failure of
where
will).
no
language appeared
resrictive
in the
The Fuller court’s
rationale was that
managerial changes
structural and
that oc
original corporation merged
corpora-
curred when the
new
corporation
determining
whether the new
important
tion were not
Fuller, 10 Ill.
carry
purposes
bequest.
be able to
out the
would
App. 3d at
2. What merger’s bequest a effect on a set general regarding rule if does not control forth in section of the Act and Fuller in the trust to otherwise grantor places a restrictive condition 212-13, Trimmer, 29 Ill. 3d at gift lapse. App. cause the See passed church would have (gift original legatee N.E.2d at 243-44 prohibiting change in trust church if restrictive condition that the trial court pass). Hope argues affiliation had not come to in the Blackman finding erred in that the restrictive condition *6 organizations should event either or both of the aforesaid “[i]n [the] said exist, bank as trustee is to distribute operate cease to or then said *** *** worthy,” organization^] as deems portion to such charitable Hudelson, now merged with in 2003 when the Home pass came to added.) of the Again, section Hope. (Emphasis named Kids Act states: “(2) parties plan to the separate corporations existenceof all *** corporation, or new shall except surviving merger[,] of 2004). 5/11.50(a)(2)(West added.) 805 (Emphases
cease.”
ILCS
the intention of
is to ascertain
“The cardinal rule of construction
it,
unless the
give
a whole and to
effect
the testator from the will as
Fuller,
3d at
App.
10 Ill.
contrary
public policy.”
to law or
intention is
must
intent, a court
464,
determine a testator’s
of which was to
divided
between two
Drake
equally
be
Penn
annual
University
College,
purpose
providing
Will,
scholarships.
234 Iowa at
at 639. The
Hagan’s
N.W2d
“
University
trust contained a clause that stated:
‘Should either Drake
exist,
College
or Penn
cease to
the income from said trust fund shall be
”
turned over
surviving
(Emphasis
original
institution.’
omitted.)
Will,
Hagan’s
234 Iowa at
at 639. In
N.W.2d
pressures
due to the economic
Depression,
College
of the Great
Penn
sought
organize
corporation,
College.
as a new
Penn
Ha-
William
Will,
gan’s
234 Iowa at
at 640. In
trustees of a
N.W.2d
mortgage
by Penn College
mortgage,
owed
foreclosed on the
and Wil-
liam Penn College subsequently
mortgaged
obtained deeds to the
property following
College paid
a foreclosure
Penn
sale. William
*7
Will,
1005-06,
mortgage debt.
In
Edward’s
the testator was born in Britain but
King
moved
young
to the United States as a
man. The testator executed a
charities,
the income of which was to be distributed to several
including
Hospital,
in
1 Ill.
hospitals
King
several
Britain.
Edward’s
342-44,
2d
App.
years
at
App. 2d at
she meant for the did not use the corporate entity. Blackman “separate” to exist” as a corporate to denote the Home’s operate “cease to or exist” phrase the Home “ceased such, finding erred in status. As the trial court merger. the 2003 or exist” as a result of on the Ground Judgment Proper Trust: Summary B. Davis’s Was present capacity”? to function That the Home “cease[d] gift on her above, placed Davis a restriction As noted *8 if it longer in that the Home would no receive income from the trust The trial court present capacity.” “cease[d] to function in its acknowledged findings agreed in its written that “the statement of the time exactly [the Home] facts does not indicate how functioned at death.” the trust was executed or at the time of the testator’s Nevertheless, in its the court found that the Home ceased to “function (1) present Hope when the Home with Kids in 2003 capacity” (2) building closed the on Eads Avenue that served subsequently original orphanage. as the contends the court erred in granting summary judgment genuine because a issue of material fact Hope, surviving corporation, still remained as to whether Kids as the still capacity functioned in the same as the Home functioned at the time of the trust’s execution in 1968.
Summary judgment in favor of the Bank is not proper based on theory that the Home ceased to function in its “present capacity” when merger. it entered the 2003 Nothing agreed set forth statement of facts demonstrates the functioning charity that of the changed at the time charity’s mission, in terms of the served, the type of children or the manner in which the Home served these contrary, children. To the merger agreement stated that the entity “guaranteed new [the that working Home’s] mission of children in Edgar and the surrounding [would] counties continue[ ].” The Bank’s argument that the present Home ceased to function in its capacity fails, because “ceased to exist” following merger also discussed in the first analysis. section of our
Likewise, we not are convinced that the 2006 flag- closure of the ship building on Eads Avenue in and of itself means that the Home ceased to “present capacity.” function The information contained agreed in the statement of facts is insufficient to secure ground. on this building At what date did the on Eads stop serving Avenue orphanage? Surely, as a traditional it was not as recent as 2006 building when the agreed closed. The statement of facts stopped indicates that the Home functioning as a traditional orphanage long before corporations merged the charitable or the house on closed, Eads Avenue perhaps began the transition during Regardless, Davis’s lifetime. say we cannot as a matter of law that the closure of building the Eads would mean that the Home ceased to function in its “present capacity.” The phrase “present capacity” is ambiguous in literally that it is not clear how Davis intended the phrase to be taken. If the corporation new charitable continued to provide placement and dependent educational services for the children Edgar County counties, yet and the surrounding was based in a dif- structure, ferent charity would the still in the capacity? same old, it seems years over 100 building on Eads Avenue was the maintenance of a bequest Davis’s on improper to condition building charity the mission of building rather than particular *9 211-12, at Trimmer, 3d at 330 N.E.2d App. housed. See 29 Ill. once (where church of passed merged church to bequest original 242-43 to affiliation, had a new name though even the church the same location). and met in a new (1995), 1011 Beck, App. 272 Ill. 3d 649 N.E.2d
In re Estate of relies, distinguishable. Beck involved which the Bank is upon the case original legatee never circumstances where the an unusual set of trust, the trial court charity and the that existed as named the that closed legatee orphanage was an be the intended determined to Beck, App. trust. 272 Ill. the testator executed the eight years before benefit seeking to corporation at 1015. The new 3d at 649 N.E.2d merged with the charity, children’s never general from the a the as rather, merely acquired legatee; corporation the new intended Beck, 649 N.E.2d at App. 272 Ill. 3d at legatee. of the intended sets App. 296 Ill. 3d 1016; Gray College, v. Mundelein see also (1998) merges with another (corporation 1388 that 695 N.E.2d liabilities, rights and original corporation’s takes on the typically of another the assets corporation merely purchases a whereas not). care, adop services such as foster charity provided The new does Beck, infants. families, care for at-risk tion, and medical counseling that the 1015. The court stated 649 N.E.2d at App. 272 Ill. 3d at *** function” to that purpose “similar charity did not have a new Beck, App. in the will. required as original orphanage, However, finding in Beck does not N.E.2d at 1015. 3d at from the fact Aside judgment in the instant case. mandate of what Fifth District’s determination by not bound that we are differ of Beck are function,” circumstances “similar constitutes a organization from one involve a clear demarcation they ent in that another, whereas the functioning to one mode of and from another entity gradual and a continuing charitable involves a instant case provided. the charitable services evolution of the Bank that made address the intimations Finally, we facts, the fact that agreed an statement submission of parties’ at entitle should somehow summary judgment, parties filed for both First, note that a we summary judgment. parties least one of are the facts only not where fact exists issue of material genuine infer different minds could draw reasonable but also where disputed Ciesiolkiewicz, See, In re Estate e.g., facts. undisputed from ences (1993). Second, we 1278, 1282 506, 510, 611 N.E.2d App. Ill. 3d not simply does of facts agreed statement that the possibility note the a mat- as to entitle either side grounds set forth sufficient ter of law.
III. CONCLUSION trial reasons, and remand the we reverse For the aforementioned summary judgment. grant court’s remanded
Reversed and
STEIGMANN, J., concurs. KNECHT, dissenting:
JUSTICE surviving corpora- was the I would affirm the trial court. Hudelson The Home ceased to exist tion after the and not the Home. Hudelson, surviving corporation, may have merger. after the acquired rights responsibilities of the Home after certain will, in the merger, trump but this cannot Blackman’s which stated exist, event the should then the Bank as cease to worthy trustee was to distribute the trust’s income to other charitable *10 organizations. (805 Act provisions
Under the of section ILCS 5/11.50(a)(2) (West 2006)), ques- ceased to exist. It is not a ownership rights property tion of of assets or of the Home but of apparent the existence of the Home. It is also the Home ceased to operate. longer operates, the Home the alternate Because no exists apply, distribution should as Blackman intended. will, the Home
As to the Davis the trial court found ceased upon to exist its dis- present capacity function in its when it ceased housing Edgar County building solution and and when the provided children since 1900 was closed and sold. The Davis will for an in the the Home ceased to function in alternate distribution event present capacity. not of a “present capacity”
Hudelson could function entity by closing selling nonexistent nor could it do so the build- ing previously Edgar County where the Home functioned as a home for children. summary judgment.
Both the Bank and Kids filed for Both agreed opportunity submitted an statement of facts. Both had input and of those facts. Both asserted to the trial court approval Once the Bank questions there were no material of fact at issue. It there are more prevailed, Hope changed course. now claims present. facts to record, necessary. are On this the trial court
No additional facts clear, correctly concluded both Blackman and Davis made their intent and their intent should be honored. longer Home no functioned as it did when Davis made her
gift, longer and it no or existed it did operated as when Blackman her gift. may made While reasonable minds sometimes draw different facts, undisputed permit inferences from we should not our reasonable minds to alter the testators’ intent. al., Co-Special
WILBERN F. HURLBERT et Adm’rs of the Estate of Helen Hurlbert, Deceased, BREWER, Plaintiffs-Appellees, I. v. SCOT E. C-U d/b/a (National Service, al., Company Denture et Defendants Union Fire Insurance Pittsburgh, Pennsylvania, Defendant-Appellant).
Fourth District No. 4—08—0225 Opinion filed December 2008.
