Trust Co. of Ill. v. Kenny
| Decision Date | 23 January 2019 |
| Docket Number | No. 1-17-2913,1-17-2913 |
| Parties | TRUST COMPANY OF ILLINOIS, as Successor Trustee of the Alice J. Ruzicka 2010 Trust Dated June 20, 2010, as Amended, and Marquette Bank, as Trustee of Trust No. 81-9-5, Plaintiffs, v. Dennis G. KENNY, as Successor Trustee of the James Ruzicka 2010 Trust Dated June 30, 2010; Fifth Third Bank, as Trustee of Trust No. 5076, Edward Stachnik; Unknown Heirs of Edward Stachnik; Rose Mary Stachnik, f/k/a Rose Mary Ludvik; Unknown Heirs of Rose Mary Stachnik, f/k/a Rose Mary Ludvik; Edward Wilkowski III; Albert Wilkowski; Lisa McCrory; James Ruzicka III; Alec Wilkowski; Benjamin Wilkowski; Ella Wilkowski; Robin Wilkowski; Margaret Wilkowski; and Thomas Wilkowski, Defendants (Trust Company of Illinois, Plaintiff-Appellee; Dennis G. Kenny, Defendant-Appellant; Edward Wilkowski III, Alec Wilkowski, Benjamin Wilkowski, and Ella Wilkowski, Defendants-Appellees). |
| Court | United States Appellate Court of Illinois |
Thomas D. Bransfield, of Bransfield & Bransfield, P.C., of Chicago, for appellant.
Joseph G. Phelps, of Rinella and Rinella, Ltd., of Chicago, for appellees Edward Wilkowski III, Alec Wilkowski, Benjamin Wilkowski, and Ella Wilkowski.
No brief filed for other appellee.
¶ 1 Defendant-Appellant, Dennis G. Kenny, appeals the judgment of the circuit court denying his motion for summary judgment in a quiet title action filed by the plaintiffs, Trust Company of Illinois and Marquette Bank. Cross-motions for partial summary judgment were filed by Kenny, as trustee of the James Ruzicka 2010 Trust and defendant-appellees, Edward Wilkowski III, Alec Wilkowski, Benjamin Wilkowski, and Ella Wilkowski (Wilkowskis) on counts I and II of plaintiffs' complaint. The circuit court denied Kenny's motion for summary judgment, granted summary judgment in favor of the Wilkowskis, and entered judgment for plaintiffs on count I and II of their complaint. On October 19, 2017, the circuit court denied Kenny's motion to reconsider.
¶ 2 On appeal, Kenny argues that the circuit court (1) erroneously applied the after-acquired-title doctrine to 1981 deed when the deed does not reflect a "sale and conveyance to another" and (2) violated all sense of equity and fairness by ignoring 2010 estate plan. For the reasons that follow, we affirm the judgment of the circuit court.
¶ 4 The cause of action stems from a dispute between the parties over ownership of a single-family residence located at 370 Uvedale Road, Riverside, Illinois (the Property). The dispute developed after a number of conveyances were made by individuals with unclear title. Therefore, the timeline of the conveyances is pertinent to the disposition of this case and is set forth below.1
¶ 6 Prior to 1976, Rose Mary Stachnik and her husband Edward Stachnik owned title to the Property. On August 28, 1976, the Stachniks, executed and recorded a deed in trust (the 1976 Deed). The 1976 Deed purported to convey all legal and equitable title in the Property to First National Bank of Cicero (Cicero Bank), trust No. 5076 (Stachnik Land Trust).
¶ 7 In 1977, after the conveyance to Cicero Bank, the Stachniks conveyed the Property again. On or about April 28, 1977, the Stachniks executed and recorded a warranty deed (the 1977 Deed), selling the Property to James Ruzicka and his wife Alice Ruzicka as joint tenants in exchange for approximately $130,000.
¶ 9 After receiving the 1977 Deed, the Ruzickas took possession of the Property, paid all real estate taxes, and continuously lived on the Property for over 30 years—from 1977 until their respective deaths in 2010 and 2014. During that time, the Ruzickas made several conveyances.
¶ 11 On or about September 18, 1981, the Ruzickas executed and recorded a deed in trust (the 1981 Deed) to Garfield Ridge Trust & Savings Bank (Garfield Bank) as trustee of land trust number 81-9-5 (Ruzickas Land Trust).2 The Ruzicka Land Trust agreement designated the Ruzickas as holding the beneficial interest and power of direction as joint tenants. On or about September 17, 2001, the Ruzickas executed an amendment to the Ruzicka Land Trust that extended the agreement for an additional 20 years.
¶ 12 On June 30, 2010, the Ruzickas established two individual trusts: the James Ruzicka 2010 Trust (James Trust) and Alice J. Ruzicka Trust (Alice Trust). On or about August 16, 2010, the Ruzickas, in their individual capacities, executed and recorded a deed in trust (the 2010 Deed). The 2010 Deed conveyed to the Ruzickas their individual interests in the Property as trustees of their respective trusts.
¶ 14 On September 3, 2010, James Ruzicka passed away. Upon his death, Alice Ruzicka became a successor trustee of the James Trust and James's estate was disposed of through the terms and provisions of his trust. The terms of the James Trust provided that the trustee distribute one-half of the residue of James's trust to his heirs and one-half to Alice's heirs. The distribution of the residue of James's trust was directed as follows: of the half designated for James's heirs, half to his sister, Mary Pizzo and one-sixth to each of his nephews, James Ruzicka, Thomas Ruzicka, and Robert Ruzicka, whereas the half designated for Alice's heirs was one-fourth to her grandnephew, Edward Wilkowski III, one-fourth to her grandniece, Lisa McCrory, and one-half to her nephew, Albert Wilkowski Jr.
¶ 15 On December 2, 2011, Alice, in her capacity as trustee of the James Trust, executed and recorded a trustee's deed (the 2011 Deed), which transferred an undivided one-half interest from the James Trust to the Alice Trust. On December 14, 2012, Alice executed a survivorship amendment to the Ruzicka Land Trust. The survivorship amendment not only stated that Alice survived James but also named the Alice Trust as the sole beneficiary upon her death.
¶ 16 After Alice's death on July 13, 2014, Kenny became successor trustee of the James Trust and plaintiff-appellee, Trust Company of Illinois, became successor trustee of the Alice Trust. Alice's estate was disposed of through the terms and provisions of her trust that provided for a final distribution of all assets held in the trust. Particularly, the terms provided that the trustee distribute title to the Property to Alice's grandnephew, defendant-appellee, Edward Wilkowski III.
¶ 18 Plaintiffs, Trust Company of Illinois and Marquette Bank, filed suit to quiet title in the circuit court of Cook County. In count I of the complaint, plaintiffs alleged that Marquette Bank, as trustee of the Ruzicka Land Trust and successor of Garfield Bank, currently holds all legal and equitable title to the Property. Moreover, plaintiffs asserted that the 1976 Deed is null and void and should be set aside because there is no evidence to show that the Stachnik Land Trust was created. In count II, plaintiffs alleged that even if the court found the 1976 Deed to be a valid conveyance of the Property, the Ruzickas still acquired title to the Property through adverse possession. Therefore, the Ruzickas' subsequent 1981 Deed to Garfield Bank and successor Marquette Bank was valid. In count III, Trust Company of Illinois sought guidance from the court regarding whether it should pursue a claim to invalidate the 2011 Deed.
¶ 19 Kenny and the Wilkowskis both moved for partial summary judgment on only counts I and II of plaintiff's complaint by filing cross-motions. The suit to quiet title turned on the current status of the Property's ownership. Thus, the issues before the circuit court were (1) whether the 1976 Deed should be set aside due to the lack of evidence showing its existence, (2) whether the 1981 Deed conveying the Property from the Ruzickas to the Ruzicka Land Trust was valid, and (3) whether any of the conveyances by the Ruzickas subsequent to the 1981 Deed were valid.
¶ 21 The circuit court denied Kenny's motion for summary judgment, granted summary judgment in favor of the Wilkowskis, and entered judgment for the plaintiffs on count I and II of their complaint. The circuit court, on its own motion, dismissed count III as being moot in light of its findings.
¶ 22 The circuit court found that an issue of material fact remains as to the 1976 Deed given that there is no evidence to establish the existence of the Stachnik Land Trust, aside from the 1976 Deed itself. The court held that the existence of the 1976 Deed created a genuine issue of material fact. Therefore, the circuit court found that the "issue of whether the 1976 Deed should be set aside cannot be resolved at this stage of the proceedings." Accordingly, the circuit court noted that whether the Ruzickas subsequently acquired title to the Property through the 1977 Deed was unclear. Notwithstanding this issue of material fact, the circuit court held that the Ruzickas acquired title to the Property by adverse possession under color of title in 1984, upon expiration of the seven-year statute of limitation.
¶ 23 The circuit court further held that 1981 Deed conveying the Property from the Ruzickas to the Ruzicka Land Trust was a valid conveyance by applying the after-acquired-title doctrine. 765 ILCS 5/7 (West 2016). Additionally, the circuit court found that all attempts by the Ruzickas to convey the Property subsequent to the 1981 Deed were made without legal authority. The circuit court also noted that the Ruzickas held a beneficial interest in the Property as joint tenants, thereby James's interest passed to Alice upon his death and Alice's interest remains assigned to her trust. As such, Marquette Bank is the current holder of all legal and equitable title to the Property and the beneficial ownership of the Property belongs to the Alice Trust in its entirety.
¶ 24 On ...
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