Estate of Bass ex rel. Bass v. Katten
| Citation | 871 N.E.2d 914 |
| Decision Date | 29 June 2007 |
| Docket Number | No. 1-05-3044.,No. 1-05-3051.,No. 1-05-3043.,No. 1-05-3068.,No. 1-05-3053.,1-05-3043.,1-05-3044.,1-05-3051.,1-05-3053.,1-05-3068. |
| Parties | The ESTATE OF William BASS, Deceased, and by and through its Independent Coexecutor Edward BASS; Edward Bass, Individually; Lyle B. Streicher; and Northwestern Medical Faculty Foundation, Inc., Plaintiffs-Appellees and Cross-Appellants, v. Melvin L. KATTEN; Katten Muchin Zavis Rosenman, a Professional Corporation; Lizabeth N. Horn, Linda L. Miller; Harvey M. Silets; David M. Kushnir; Deloitte Touche, L.L.P.; Paul Anglin; James Jacobson, Griffith & Jacobson; Marc H. Schwartz; Laser Pokorny Schwartz Friedman & Economos; Vedder, Price, Kaufman & Kammholz; Igor Potym; Vincent A.F. Sergi, P.C.; Kristin J. Achterhof; James Craig Anderson; Nicole Nehama Auerbach; Steven F. Banghart; Sheldon I. Banoff, P.C.; Steven L. Bashwiner, P.C.; Jonathan K. Baum; Alan M. Berry, P.C.; Victor H. Bezman, P.C.; Craig C. Bradley; Robert J. Brantman; James M. Broeking; Edwin E. Brooks, Mathew S. Brown; David J. Bryant; James A. Burns, Jr.; Michael R. Callahan; Dawn M. Canty; Jane J. Choi; David W. Clough; Stevie D. Conlon; Tanya L. Curtis; Theresa L. Davis; W. Kenneth Davis, Jr.; David R. Dlugie; Leah J. Domitrovic; William M. Doyle, Jr.; David M. Dunbar, Jeffrey L. Elegant; Jonathan S. Feld; Leonard A. Ferber; Kurt W. Florian, Jr.; Gary J. Fox; Renee M. Friedman; Ferdinand J. Gallo, III; James M. Gecker; Scott Michael Gettleson; Rene Ghandimi; Richard E. Ginsberg; Basil V. Godellas; Susan L. Goldenberg; Julie L. Gottshall; Stuart E. Grass; Bryan J. Green; Lewis Greenbaum; Russell E. Greenblatt, P.C.; Arthur W. Hahn; Patricia M. Hanson; Megan Hardiman; Charles Harris; Michael O. Hartz; Robin Heiss; Ted S. Helwig; Mary Ellen Hennessy; Amy A. Hijjawi; Janet Goelz Hoffman; Linda Lemel Hoseman; Kenneth M. Jacobson; Tara Goff Kamradt; Melvin L. Katten, P.C.; David H. Kistenbroker; Adam R. Klein; Marla J. Kreindler; Stewart T. Kusper; Howard S. Lanznar; Lawrence D. Levin; Kevin S. MacKinnon; Seth R. Madorsky; Reid A. Mandel; Floyd A. Mandell, P.C.; Laura Keidan Martin; Nina B. Matis, P.C.; William E. Mattingly, P.C.; Thomas J. McFadden; Adam M. Meek; Kenneth. W. Miller, Patrick J. Morris; Alan J. Muchin, P.C.; Kathleen M. Murphy; Steven V. Napolitano; Kyle E. Nenninger; Terry E. Newman, P.C.; Wesley G. Nissen; J. Phillip O'Brien; Steven R. Olson; John S. Paniaguas; Keith D. Pascus; Timothy J. Patenode; Jeffrey R. Patt; Melvin E. Pearl, P.C.; Gerald M. Penner, P.C.; Daniel J. Pearlman; Michael M. Philip; Gregory P.L. Pierce; Nancy J. Rich; Howard M. Richard, P.C.; Brian F. Richards; Saul E. Rudo; Suzanne M. Russell; Barnett P. Ruttenberg, P.C.; James L. Sawyer; Richard M. Seligman, P.C.; Russell B. Selman; Steven A. Shapiro, P.C.; David R. Shevitz, P.C.; Orrin S. Shifrin; Stuart P. Shulruff; Ross O. Silverman; Mark C. Simon; Ann Marie Sink; Nina Momtazee Sitzer; Andrew D. Small; Pamela G. Smith; Gil M. Soffer; Bonita L. Stone; Marcia W. Sullivan, P.C.; Ira J. Swidler; Ernest W. Torain, Jr.; James D. Van De Graaff; Timothy J. Vezeau; Zachary D. Wagman; Milton S. Wakschlag; Herbert S. Wander, P.C.; Maryann A. Waryjas; Elizabeth Fleming Weber; Walter S. Weinberg; Mark S. Weisberg; John Robert Weiss; Linda Jeffries Wight; Bruce G. Wilson; Mark D. Wood; Sheldon T. Zenner; Mark S. Zolino; and John Doe Nos. 1 through 600, Defendant-Appellants and Cross-Appellees. |
| Court | United States Appellate Court of Illinois |
William Bass, now deceased, executed conflicting estate plans in 2000 and 2002. The 2002 estate plan was admitted to probate, and one of the beneficiaries of the 2002 plan filed suit in that court to challenge the validity of the 2000 trust and recover for the estate all assets allegedly transferred to the 2000 trust. While that case was pending on appeal, the estate, William Bass's brother, Edward Bass, and his sister, Lyle Streicher1 (plaintiffs), beneficiaries of the estate, brought an amended consolidated complaint against attorneys involved with the preparation of the trusts. The trial court dismissed the malpractice complaint without prejudice on the basis that plaintiffs' claims were premature, since the probate appeal involved the same core issues. Upon plaintiffs' motion for reconsideration, the trial court affirmed its finding of prematurity but vacated the dismissal to avoid potentially foreclosing plaintiffs' cause of action and stayed the case until the appellate and supreme courts resolved the probate proceedings.
On appeal, defendants contend that the trial court abused its discretion by staying proceedings, despite its finding of prematurity, in order to avoid application of the limitations and repose periods. Plaintiffs cross-appeal the trial court's finding of prematurity.
Plaintiffs' consolidated complaint alleges the following. William Bass, who accrued substantial assets during his lifetime, created estate plans in both 2000 and 2002. The 2000 estate plan was drafted by James Jacobson, an attorney from the law firm Griffith and Jacobson, LLC, and were revocable at Bass's discretion. Under this estate plan, Edward Bass and Lyle Streicher would receive certain gifts held in trust and the remainder, a significant portion of the estate, would pass to the Bill Bass Foundation. The 2000 estate plan named Jacobson and Schwartz and coexecutors and successor cotrustees.
In late 2001, Bass retained Katten, Muchin Zavis Rosenman (KMZR) to prepare a replacement estate plan. On January 8, 2002, he executed a will and revocable trust naming Melvin Katten, a partner at KMZR, and Paul Anglin, an accountant, as coexecutors and cotrustees. Under the 2002 estate plan, after certain specific distributions, the remainder passed in equal shares to Northwestern Medical Faculty Foundation, Inc. (Northwestern), Edward Bass in trust, and Lyle Streicher in trust.
It also alleged that when William Bass informed Jacobson that he executed the 2002 estate plan, Jacobson did not inform KMZR of the 2000 trust and instead tried to persuade Bass to revoke the 2002 estate plan. In addition, Igor Potym and Vedder Price failed to disclose to William Bass that there was a potential conflict among the 2000 plan, the 2002 plan, and Jacobson's new estate documents.
The complaint alleged that although Anglin knew that William Bass intended to revoke the 2000 trust, he failed to ensure clear title to certain disputed assets and to inform Katten or KMZR of the existence of the 2000 trust. Furthermore, Katten and KMZR failed to inquire about, investigate, or discover the existence of the 2000 estate plan and the manner in which Bass's assets were titled. Specifically, in the summer of 2003, Katten discovered that Bass's account with the Vanguard Group, consisting of stock valued at $30 million, was titled in the name of the 2000 trust. The complaint alleges that Katten and KMZR also knew that title to Bass's residence had been transferred to the 2000 trust, but they failed to retrieve the property or contact Jacobson about the 2000 trust.
Bass died on December 31, 2003, and the 2002 will was admitted to probate on January 28, 2004. The complaint alleges that after Bass's death, the executor of the estate attempted to claim certain property of Bass's, but Schwartz and Jacobson maintained that as successor trustees, they were entitled to the assets. They liquidated shares in privately held corporations contrary to the intent of the estate, and soon thereafter, the market price of the shares rose substantially.
In February 2004, Northwestern, a beneficiary of the 2002 trust, challenged the validity of the 2000 trust and sought to recover for the estate all assets allegedly transferred to the 2000 trust. The probate court dismissed the citation petition with prejudice. Northwestern, Edward Bass, and Lyle Streicher appealed the dismissal to this court under docket number 1-04-3240.
In November 2004, the estate and beneficiaries filed the consolidated complaint, asserting claims for malpractice, breach of fiduciary duties, and intentional misconduct. It sought the following relief: (1) imposition of a constructive trust or resulting trust on all property and assets held in the 2000 trust, (2) a declaration that the 2000 trust is invalid, (3) compensatory and punitive damages, and (4) attorney fees and costs.
Defendants moved to dismiss the complaint on the basis that it was premature given the pendency of the probate litigation. On July 15, 2005, in a memorandum opinion, the trial court noted that a claim for legal malpractice does not mature until the plaintiff has suffered an adverse judgment, settlement, or dismissal of an underlying action due to the attorney's negligence. The court found that the same core issue, i.e., whether the 2000 or 2002 will and trust governed the disposition of Bass's property, existed in both the malpractice case and the probate appeal. Each cause of action in the malpractice case, regardless of the theory of recovery, rested on this core issue, and "if the appeal determines that Plaintiffs will retain the benefits of the 2002 Trust and Will they will not have been damaged by the actions of the various Defendants." The court also rejected plaintiffs' argument that...
To continue reading
Request your trial
-
Sentry Ins. v. Cont'l Cas. Co.
...Ill.App.3d 366, 375, 329 Ill.Dec. 423, 906 N.E.2d 621 (2009) (quoting Estate of Bass v. Katten , 375 Ill.App.3d 62, 68, 313 Ill.Dec. 187, 871 N.E.2d 914 (2007) ).¶ 47 C. Care, Custody, or Control Exclusion ¶ 48 Continental's insurance policy contained a "care, custody, or control" exclusion......
-
Evanston Ins. Co. v. Riseborough
...¶ 32 The cases relied on by Evanston are distinguishable. In Estate of Bass v. Katten, 375 Ill.App.3d 62, 65–66, 313 Ill.Dec. 187, 871 N.E.2d 914 (2007), an action filed by the plaintiffs against their attorneys for legal malpractice, breach of fiduciary duties, and intentional misconduct w......
-
Certain Underwriters at Lloyd's v. Boeing
......See Estate of Bass v. Katten, 375 Ill. App.3d 62, 67, 313 Ill.Dec. ...508, 524 N.E.2d 538; People ex rel. Baylor v. Highway Insurance Co., 57 Ill.2d 590, 594-95, ......
-
Preferred Pers. Serv. V. Meltzer, Purtill
......359, 502 N.E.2d at 859. See also Estate of Bass v. Katten, 375 Ill.App.3d 62, 313 Ill. Dec. 187, ......