In re MARRIAGE OF MICHAEL K. REICHER III, Petitioner and Counterrespondent-Appellee, and LAURA A. REICHER, Respondent and Counterpetitioner-Appellant.
No. 2-20-0454
Appellate Court of Illinois, Second District
June 18, 2021
2021 IL App (2d) 200454
Decision Under Review: Appeal from the Circuit Court of Kane County, No. 15-D-1317; the Hon. William J. Parkhurst, Judge, presiding.
Judgment: Appeal dismissed in part; judgment affirmed in part.
Counsel on Appeal: Robin M. Zandri, of Goostree Law Group, P.C., of St. Charles, for appellant.
Stephen D. Brown, of St. Charles, and Douglas B. Warlick, of Douglas B. Warlick & Associates, of Geneva, for appellee.
Panel: JUSTICE JORGENSEN delivered the judgment of the court, with opinion. Justices McLaren and Schostok concurred in the judgment and opinion.
OPINION
¶ 1 In February 2017, the circuit court entered a judgment dissolving the marriage of petitioner, Michael K. Reicher, and respondent, Laura A. Reicher. The judgment incorporated the parties’ marital settlement agreement (MSA). In December 2019, Laura petitioned the court to compel Michael‘s compliance with the MSA, and, in January 2020, issued subpoenas to Michael‘s employer and a financial institution, Fidelity Brokerage Services, LLC (Fidelity). Michael moved to quash the subpoenas and to dismiss Laura‘s petition. He also sought sanctions under
¶ 2 Laura appeals, arguing that the court erred by quashing her subpoenas and dismissing her petition. We dismiss in part and affirm in part.
¶ 3 I. BACKGROUND
¶ 4 Michael and Laura married in 2011. In October 2015, Michael petitioned to dissolve their marriage and, in February 2016, Laura counterpetitioned to do so.
¶ 5 In December 2016, after a prove-up hearing, the court entered a bifurcated judgment for dissolution of marriage (see
“[P]ursuant to this bifurcated judgment, the effective date for all financial issues, including the marital status for the purpose of filing income tax returns, is December 15, 2016, with the exception that any bonus, stock[,] or similar equity award that was earned in 2016 by either [p]arty which is paid or received any time after December 15, 2016, through December 31, 2017, is deemed to be marital property. Furthermore, any such payment shall be divided in accordance with the percentage or proportion of the remaining marital estate which shall be determined at trial.” (Emphasis added.)
¶ 6 While awaiting trial, the parties settled all the financial issues between them. On February 9, 2017, the court entered a final judgment for dissolution of marriage, which incorporated the MSA. At a hearing to prove up the final judgment and the MSA, Michael testified that “every financial aspect of this case” was set forth in the MSA, he had made a full and complete disclosure of his assets and income prior to signing the MSA, and the MSA contained “forward-looking provisions *** about stock options going on in the future and a bonus in the future,” which would be taken care of “if and when they occur.” Further, he testified he understood some discovery may be required to determine to what Laura was entitled. Laura
¶ 7 Paragraph 3.3 of the MSA stated that the parties had previously separated their joint financial accounts and were entitled to retain the entirety of those personal accounts, except as provided in paragraph 3.4. In addition, it stated that Michael “represents that there are no other undisclosed accounts; moreover, if an undisclosed account is discovered hereafter then it shall be divided as provided hereunder.” Paragraph 3.4 of the MSA provided that the parties’ cash and stock in three identified accounts—Fidelity account ending in 5203, Fidelity account ending in 5256, and Merrill Edge account ending in 2111—be split, with Laura receiving a 70% share and Michael a 30% share.
¶ 8 Paragraph 3.6 of the MSA stated that Laura was entitled to a one-time payment of 30% of Michael‘s net bonus from his 2016 employment, which was payable in 2017. It further provided that, within five days of receiving the bonus, Michael was required to calculate and make the payment and provide supporting documents to Laura. Laura had 30 days to object to his calculation. If the parties could not agree to the correct amount to be paid after her objection, she was permitted to seek relief from the court. It also stated that, if Laura did not file a motion objecting to Michael‘s payment or tender of related information within 60 days of her receipt of it, she was barred from seeking relief from the court.
¶ 9 Paragraph 3.7 of the MSA provided Laura was entitled to 40% of the net shares of Michael‘s equity awards that were granted in 2014 and 2015 and vested and payable in 2017 and 2018. It required Michael to transfer to Laura 40% of his net shares, after selling and retaining shares to cover his tax liability, no later than three days after he received the equity award. Paragraph 3.7, as well as the remainder of the MSA, stated nothing concerning equity awards earned by Michael in 2016.
¶ 10 In February 2018, Laura petitioned the court to hold Michael in indirect civil contempt, alleging Michael had failed to comply with paragraph 3.7 of the MSA by failing to transfer 40% of the net shares awarded to him in his 2014 equity awards, which became vested and payable in 2017. She also alleged that Michael failed to notify her “of all the equity awards which he was awarded in 2014 and that became vested in 2017” and that she discovered his failure only after receiving subpoenaed documents from his Merrill Edge account.
¶ 11 In November 2018, the court entered an agreed order resolving Laura‘s petition, requiring Michael to transfer to her 40% of the net shares awarded to him in his 2014 and 2015 equity awards. In addition, the order required him to provide to Laura‘s accountant documents, including his 2017 and 2018 income-tax returns, year-end pay stubs, and summary statements relating to the equity awards.
¶ 12 On December 26, 2019, Laura petitioned the court to compel Michael‘s compliance with the MSA. First, she asserted that she “[wa]s informed and believe[d]” that Michael opened one or more undisclosed Fidelity accounts in his name before the final judgment was entered and she was entitled to 70% of those accounts under paragraphs 3.3 and 3.4 of the MSA. She also alleged that Michael failed to comply with paragraph 3.6 of the MSA because he had not provided her with documents that would allow her to verify Michael‘s calculation of her share of his 2016 employment bonus. Finally, she asserted that the bifurcated judgment provided
¶ 13 In response, Michael moved to quash the subpoenas, to dismiss Laura‘s petition, and to receive sanctions. In his motion to quash, Michael asserted he had fully complied with all financial obligations required of him under the MSA, any issue with respect to his equity awards had been resolved by the November 2018 agreed order, and no outstanding issues remained. He further asserted that the Fidelity subpoena would not lead to relevant information to the extent it sought documents relating to accounts held before the judgment and he “should not be forced to re-litigate issues determined nearly three years ago at the time of the parties’ divorce and against [sic] more than two years ago when the parties litigated issues pertaining to the equity awards.”
¶ 14 Michael sought dismissal under sections 2-615 and 2-619(a)(4) of the Code of Civil Procedure (Code) (
¶ 15 Under section 2-619(a)(4), Michael argued that the final dissolution judgment, which incorporated the MSA, was a final adjudication of the respective rights of both parties as to the bonus he earned in 2016 and was paid in 2017. According to Michael, Laura was barred from
¶ 16 On May 28, 2020, the court held a hearing on Michael‘s motion to quash, and the court granted it “for the reasons set forth in [the motion].” The record on appeal does not contain a verbatim transcript, an agreed statement of facts, or a bystander‘s report showing what transpired at the hearing. Laura moved to reconsider the court‘s order granting the motion to quash. The court denied her motion.
¶ 17 On July 28, 2020, after a hearing, the court entered an order granting Michael‘s motion to dismiss.1 The order stated, “Motion to Dismiss Motion [sic] to Compel Compliance with Judgment for Dissolution of Marriage and For Sanctions is granted.” It further stated (1) count II of the motion, which sought, under section 2-619(a)(4) of the Code, dismissal of Laura‘s claim related to Michael‘s 2016 employment bonus, was granted and (2) count I of the motion, which sought dismissal, under section 2-615 of the Code, of Laura‘s claim related to the undisclosed marital brokerage accounts and the 2016 equity award, was granted because “no further compliance [wa]s required [of Michael].” (Laura does not raise any issue with the court‘s dismissal of the claim related to Michael‘s 2016 employment bonus.) The order was silent as to count III of Michael‘s motion, which asserted the claim for sanctions under
¶ 18 On August 14, 2020, Laura filed a notice of appeal, identifying the following two orders from which the appeal was taken: (1) the July 22, 2020, order denying her motion to reconsider the order quashing the subpoenas and (2) the July 27, 2020, order dismissing her petition to compel compliance.
¶ 19 II. ANALYSIS
¶ 20 On appeal, Laura argues that the circuit court erred by granting Michael‘s motion to quash the subpoenas and his motion to dismiss her petition to compel compliance with the paragraphs of the MSA relating to the 2016 equity awards and the previously undisclosed financial accounts.
¶ 21 A. Jurisdiction
¶ 22 We first address our jurisdiction to consider Laura‘s appeal. See Almgren v. Rush-Presbyterian-St. Luke‘s Medical Center, 162 Ill. 2d 205, 210 (1994) (appellate court has independent duty to consider its jurisdiction before proceeding to the merits of the case). Laura asserts this court has jurisdiction under
¶ 23 Laura petitioned the court to compel Michael to comply with various provisions of the MSA and issued to two entities subpoenas seeking documents relating to her petition. Michael, in turn, moved to quash the subpoenas and dismiss Laura‘s petition to compel. In his motion to dismiss, Michael also asserted a claim for sanctions under
¶ 24
“If multiple parties or multiple claims for relief are involved in an action, an appeal may be taken from a final judgment as to one or more but fewer than all of the parties or claims only if the trial court has made an express written finding that there is no just reason for delaying either enforcement or appeal or both. *** The time for filing a notice of appeal shall be as provided in
Rule 303 . *** In the absence of such a finding, any judgment that adjudicates fewer than all the claims or the rights and liabilities of fewer than all parties is not enforceable or appealable and is subject to revision at any time before the entry of a judgment adjudicating all the claims, rights, and liabilities of all the parties.” (Emphasis added.)Ill. S. Ct. R. 304(a) (eff. Mar. 8, 2016).
Accordingly, to appeal from the orders entered in this case, the record must show that the circuit court made the special finding required under
¶ 25 As noted, Laura appeals from two separate orders: (1) the order denying her motion to reconsider the order quashing the subpoenas and (2) the order dismissing her petition to compel Michael‘s compliance with the MSA. We turn first to the order denying her motion to reconsider the order quashing the subpoenas.
¶ 26 Laura‘s notice of appeal specified the order denying her motion to reconsider but not the order quashing the subpoenas. However, “[t]ypically, the designation of a judgment resolving a motion to reconsider is held to confer jurisdiction also of the judgment of which reconsideration was sought.” In re Marriage of Ruvola, 2017 IL App (2d) 160737, ¶ 51. Yet neither the order quashing the subpoenas nor the order denying the motion to reconsider contain a
¶ 27 Turning to the order dismissing Laura‘s petition, we conclude we have jurisdiction under
¶ 28 B. Laura‘s Compliance With
¶ 29 In his brief, Michael contends that Laura‘s brief fails to comply with
¶ 30 The supreme court rules governing the form and content of appellate briefs are not mere suggestions but, rather, are mandatory and have the force of law. Hall v. Naper Gold Hospitality LLC, 2012 IL App (2d) 111151, ¶ 7. The failure to comply with the rules is not an inconsequential matter and may justify striking the brief and dismissing the appeal. Id. ¶¶ 7, 15. The purpose of the rules is to require parties to present clear and orderly arguments so the reviewing court can properly ascertain and dispose of the issues involved. Id. ¶ 7. The striking of a party‘s brief and dismissal of the appeal, however, is a harsh sanction, which is ordinarily reserved for the most egregious failures to comply with the rules and those that hinder our review. Id. ¶ 15.
¶ 31 We conclude such a sanction is not appropriate in this case. First, we note Laura‘s brief does, in fact, contain lengthy single-spaced block quotations from the judgment, MSA, parties’ pleadings, and report of proceedings. Under
¶ 32 Second, we disagree with Michael‘s contention that Laura‘s statement of facts is argumentative or misleading. We see no deliberate effort on Laura‘s part to infuse comment or argument into her statement of facts or mislead this court as to the pertinent facts of this case. Rather, Laura‘s brief fairly and accurately sets forth most of the pertinent facts of the case, without comment and argument and with appropriate references to the pages of the record on appeal. Even where her recitation of the facts omitted some of the bases of his pleadings, we were nevertheless able to find them in the record on appeal. It is true, as Michael asserts, that Laura failed to include a report of proceedings of the hearing on his motion to quash, but we fail to see how that is misleading where her statement of facts adequately informs us that a hearing, in fact, took place.
¶ 33 We are troubled, however, by the dearth of authority cited by Laura in her brief. Laura‘s brief cites a total of four cases, two of which set forth the applicable standards of review, while the other two set forth boilerplate law concerning the scope of discovery and the standards applicable to section 2-615 motions. She has otherwise failed to cite any authority to support her contentions. She does not cite even a single case setting forth what a viable claim would allege, which is a necessary part of our analysis as to whether the court erred by dismissing her petition under section 2-615. (We also note Laura failed to cite any authority in her reply brief, after Michael called her failure to her attention.) Simply put, a written argument in this court requires more than what Laura has placed before us. This court is not a repository into which a party may dump the burden of argument and research. See v. Illinois Gaming Board, 2020 IL App (1st) 192200, ¶ 24; Hall, 2012 IL App (2d) 111151, ¶ 13. To be clear, Laura presents some argument on the issues raised in this appeal, unlike the cursory arguments raised by the appellants in See and Hall. The problem, however, is her failure to cite pertinent authority to support her arguments. This plainly violates
¶ 34 C. The Order Dismissing Laura‘s Petition
¶ 35 Laura challenges only the portion of the court‘s order dismissing, under section 2-615 of the Code, the portions of her petition based on the provisions of the MSA that (1) identified and distributed the parties’ marital brokerage accounts and (2) governed the distribution of Michael‘s 2014 and 2015 equity awards, which were to become vested and payable in 2017 and 2018, respectively.
¶ 36 A motion filed under section 2-615 of the Code challenges the legal sufficiency of the complaint. Reynolds v. Jimmy John‘s Enterprises, LLC, 2013 IL App (4th) 120139, ¶ 25. Such a motion essentially states, “So what? The facts the plaintiff has pleaded do not state a cause of action against me.” (Internal quotation marks omitted.) Id. When deciding such a motion, the court must consider whether the facts alleged in the complaint, viewed in the light most favorable to the plaintiff and taking all well-pleaded facts and all reasonable inferences that
¶ 37 A court must not dismiss a complaint under section 2-615 unless it is clearly apparent that no set of facts can be proved that would entitle the plaintiff to recovery. Reynolds, 2013 IL App (4th) 120139, ¶ 25. In ruling on such a motion, the court considers only (1) the facts apparent from the face of the pleadings, (2) matters that are subject to judicial notice, and (3) judicial admissions contained in the record. Id. We review de novo the dismissal of a complaint under section 2-615. Id.
¶ 38 Regarding the allegedly undisclosed Fidelity accounts, Laura argues that the MSA placed no limitation on the timeframe in which she could seek to enforce the provision to receive her 70% share of an account discovered after the date of the MSA. She asserts her allegation that she “[wa]s informed and believe[d]” that Michael had opened one or more Fidelity accounts in his individual name prior to entry of the final judgment was sufficient to state a claim that Michael failed to comply with the MSA.
¶ 39 To state a claim for breach of a settlement agreement, the plaintiff must plead facts establishing (1) the existence of the settlement agreement, (2) the performance of his or her own obligations under the agreement, (3) failure by the defendant to perform his or her obligations, and (4) a resulting injury. See Wilkonson v. Yovetich, 249 Ill. App. 3d 439, 449 (1993).
¶ 40 Initially, we take note of the relief sought by Laura in her petition to compel compliance. Her petition sought an order requiring Michael to provide her documentation relating to, among other things, (1) purportedly previously undisclosed Fidelity accounts and (2) any equity award granted to or exercised by Michael in 2016. Essentially, then, Laura‘s petition sought discovery, not affirmative relief under the terms of the MSA. In other words, her petition sought to obtain evidence that could have supported a petition to compel Michael to provide her monies to which she was entitled under the MSA. With this context in mind, we turn to the allegations of Laura‘s petition.
¶ 41 In her petition, other than a recitation of the terms of the MSA, Laura‘s sole allegation was that she was “informed and believe[d]” that Michael opened one or more accounts with Fidelity in his individual name prior to the final judgment, which he failed to disclose to her. We conclude that this allegation was not sufficient to state a claim upon which relief could be granted.
¶ 42 Allegations made on information and belief are not the equivalent of allegations of relevant fact. Patrick Engineering, Inc. v. City of Naperville, 2012 IL 113148, ¶ 40 (citing Whitley v. Frazier, 21 Ill. 2d 292, 294 (1961)). “In some cases, certain relevant facts of a cause of action will not be known to the plaintiff.” In re Estate of DiMatteo, 2013 IL App (1st) 122948, ¶ 83. A plaintiff may sometimes be forced to present allegations that are based on information and belief, particularly when the necessary facts are within the defendant‘s sole knowledge. Id. In such circumstances, “a complaint which is as complete as the nature of the case allows is
¶ 43 Simply put, Laura‘s unsupported allegation, based on information and belief, that Michael opened and failed to disclose one or more brokerage accounts prior to the final judgment was not sufficient to state a claim. Laura failed to plead any facts that set forth how she formed her belief that Michael had established these accounts prior to the dissolution of the marriage. Without such facts, we cannot determine whether her allegation was anything other than mere speculation, and it cannot survive a section 2-615 motion. See Calloway, 2020 IL App (1st) 191603, ¶ 21. In essence, Laura‘s petition was a fishing expedition, based on an unsubstantiated allegation, in which she sought to obtain evidence that could support a claim for breach of the MSA. This conclusion is made clear by her prayer for relief, which sought an order compelling Michael to provide her with documents, not an order compelling Michael to pay her certain monies to which she was entitled.
¶ 44 We turn next to Laura‘s claim based on her purported entitlement to a portion of Michael‘s 2016 equity bonus. Laura argues that, under the terms of the bifurcated judgment, which “stands alone and is separate and independent” from the final judgment incorporating the MSA, any equity awards granted to Michael in 2016 were marital property subject to division between the parties. She asserts, “[w]hile the [MSA] do[es] not specifically reference equity awards that were granted to Michael in 2016, this does not bar Laura from obtaining her share of those equity awards as the [b]ifurcated [j]udgment specifically identifies them as marital property.” She also argues that the equity awards “could also qualify as undisclosed assets,” which would be subject to paragraph 3.4 of the MSA.
¶ 45 Michael responds that he fully complied with the agreement and no compliance could be compelled. Therefore, he argues, the petition failed to state a cause of action. In other words, Michael argues that the MSA did not impose upon him a duty to disclose to Laura information related to his 2016 equity award and pay her a portion thereof. We agree with Michael.
¶ 46 On December 15, 2016, the circuit court entered a bifurcated judgment for dissolution of marriage, which dissolved the parties’ marriage but reserved all financial issues for trial. The bifurcated judgment stated any equity award earned in 2016 and paid between December 15, 2016, and December 31, 2017, was marital property, which would be divided as determined at trial. On February 9, 2017, the court entered a final judgment, which incorporated the MSA. The final judgment noted that the bifurcated judgment had reserved the financial issues and found the parties had “subsequently resolved all of those financial issues” and ”all of those terms and provisions” were set forth in the MSA. (Emphases added.) Paragraph 3.7 of the MSA provided that Laura was entitled to a share of the equity awards Michael had earned in 2014 and 2015 and set forth the procedure under which the amount of Laura‘s share was to be determined when those awards were ultimately paid in 2017 and 2018. It was silent, however, as to any equity award Michael earned in 2016.
¶ 47 We conclude that the MSA‘s silence concerning any equity award Michael would have earned in 2016 evidences the parties’ intent not to include such an award in the property division. The parties entered into the MSA on February 9, 2017, after Michael would have earned any 2016 equity award. If the parties had intended to include a division of any equity award earned by Michael in 2016, they would have included it in the MSA, particularly when they included his 2014 and 2015 equity awards that were yet to be paid. The language of the
¶ 48 The language in the bifurcated judgment on which Laura focuses—stating the effective date for all financial issues was December 15, 2016 (the date the bifurcated judgment was entered), with the exception of any bonus, stock, or similar equity award earned in 2016 and paid on or before December 31, 2017—does not change our conclusion. That language merely set forth that the effective date for all financial issues was December 15, 2016, except that any equity award Michael earned in 2016 would also be included in the marital estate and be subject to division at trial. Two months later, when the parties settled the issue of the division of marital property, they did not include any equity award Michael may have earned in 2016. Accordingly, we conclude, pursuant to the terms of the MSA, that Laura was not entitled to a share of any equity award Michael may have earned in 2016, and, therefore, Laura could not prove any set of facts that would entitle her to relief. See Reynolds, 2013 IL App (4th) 120139, ¶ 25.
¶ 49 As a final matter, we briefly address and reject Laura‘s argument that any 2016 equity awards could be classified as undisclosed assets under paragraph 3.4 of the MSA. Her one-sentence argument, unsupported by citation to authority, fails to comply with
¶ 50 III. CONCLUSION
¶ 51 For the reasons stated, we dismiss the appeal in part and otherwise affirm the judgment of the circuit court of Kane County.
¶ 52 Appeal dismissed in part; judgment affirmed in part.
