{ "id": 3616849, "name": "In re ESTATE OF ELINOR E. LAAS, Deceased (The People ex rel. Neil F. Hartigan, Attorney General of Illinois, Respondent-Appellant, v. Charles L. Martin et al., Petitioners-Appellees)", "name_abbreviation": "People ex rel. Hartigan v. Martin", "decision_date": "1988-06-14", "docket_number": "No. 87-3025", "first_page": "916", "last_page": "923", "citations": [ { "type": "official", "cite": "171 Ill. App. 3d 916" } ], "court": { "name_abbreviation": "Ill. App. Ct.", "id": 8837, "name": "Illinois Appellate Court" }, "jurisdiction": { "id": 29, "name_long": "Illinois", "name": "Ill." }, "cites_to": [ { "cite": "480 N.E.2d 1183", "category": "reporters:state_regional", "reporter": "N.E.2d", "opinion_index": 0 }, { "cite": "134 Ill. App. 3d 504", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 3636088 ], "opinion_index": 0, "case_paths": [ "/ill-app-3d/134/0504-01" ] }, { "cite": "425 N.E.2d 973", "category": "reporters:state_regional", "reporter": "N.E.2d", "opinion_index": 0 }, { "cite": "99 Ill. App. 3d 278", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 3102814 ], "opinion_index": 0, "case_paths": [ "/ill-app-3d/99/0278-01" ] }, { "cite": "474 N.E.2d 1378", "category": "reporters:state_regional", "reporter": "N.E.2d", "year": 1981, "opinion_index": 0 }, { "cite": "130 Ill. App. 3d 1031", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 3493191 ], "year": 1981, "opinion_index": 0, "case_paths": [ "/ill-app-3d/130/1031-01" ] }, { "cite": "493 N.E.2d 121", "category": "reporters:state_regional", "reporter": "N.E.2d", "year": 1985, "opinion_index": 0 }, { "cite": "143 Ill. App. 3d 741", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 5666439 ], "year": 1985, "opinion_index": 0, "case_paths": [ "/ill-app-3d/143/0741-01" ] }, { "cite": "26 U.S.C.A. \u00a76511", "category": "laws:leg_statute", "reporter": "U.S.C.", "year": 1988, "opinion_index": 0 }, { "cite": "430 N.E.2d 139", "category": "reporters:state_regional", "reporter": "N.E.2d", "opinion_index": 0 }, { "cite": "102 Ill. App. 3d 524", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 3075336 ], "pin_cites": [ { "page": "527" } ], "opinion_index": 0, "case_paths": [ "/ill-app-3d/102/0524-01" ] }, { "cite": "463 N.E.2d 1011", "category": "reporters:state_regional", "reporter": "N.E.2d", "year": 1981, "opinion_index": 0 }, { "cite": "124 Ill. App. 3d 56", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 3427370 ], "year": 1981, "pin_cites": [ { "page": "69" } ], "opinion_index": 0, "case_paths": [ "/ill-app-3d/124/0056-01" ] }, { "cite": "6 N.E.2d 131", "category": "reporters:state_regional", "reporter": "N.E.2d", "opinion_index": 0 }, { "cite": "365 Ill. 149", "category": "reporters:state", "reporter": "Ill.", "case_ids": [ 2583221 ], "pin_cites": [ { "page": "153" } ], "opinion_index": 0, "case_paths": [ "/ill/365/0149-01" ] }, { "cite": "125 N.E. 13", "category": "reporters:state_regional", "reporter": "N.E.", "year": 1936, "opinion_index": 0 }, { "cite": "290 Ill. 205", "category": "reporters:state", "reporter": "Ill.", "case_ids": [ 2419961 ], "weight": 2, "year": 1936, "pin_cites": [ { "page": "221" }, { "page": "221" } ], "opinion_index": 0, "case_paths": [ "/ill/290/0205-01" ] }, { "cite": "99 N.E.2d 685", "category": "reporters:state_regional", "reporter": "N.E.2d", "opinion_index": 0 }, { "cite": "343 Ill. App. 622", "category": "reporters:state", "reporter": "Ill. App.", "case_ids": [ 5073131 ], "pin_cites": [ { "page": "627" } ], "opinion_index": 0, "case_paths": [ "/ill-app/343/0622-01" ] }, { "cite": "133 N.E.2d 748", "category": "reporters:state_regional", "reporter": "N.E.2d", "year": 1951, "opinion_index": 0 }, { "cite": "9 Ill. App. 2d 473", "category": "reporters:state", "reporter": "Ill. App. 2d", "case_ids": [ 5152984 ], "year": 1951, "pin_cites": [ { "page": "478" } ], "opinion_index": 0, "case_paths": [ "/ill-app-2d/9/0473-01" ] }, { "cite": "374 N.E.2d 756", "category": "reporters:state_regional", "reporter": "N.E.2d", "year": 1956, "opinion_index": 0 }, { "cite": "58 Ill. App. 3d 408", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 5625427 ], "year": 1956, "pin_cites": [ { "page": "413" } ], "opinion_index": 0, "case_paths": [ "/ill-app-3d/58/0408-01" ] }, { "cite": "464 N.E.2d 690", "category": "reporters:state_regional", "reporter": "N.E.2d", "year": 1978, "opinion_index": 0 }, { "cite": "124 Ill. App. 3d 269", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 3428528 ], "year": 1978, "pin_cites": [ { "page": "276" } ], "opinion_index": 0, "case_paths": [ "/ill-app-3d/124/0269-01" ] }, { "cite": "154 N.E. 120", "category": "reporters:state_regional", "reporter": "N.E.", "year": 1984, "opinion_index": 0 }, { "cite": "323 Ill. 309", "category": "reporters:state", "reporter": "Ill.", "case_ids": [ 5175256 ], "year": 1984, "pin_cites": [ { "page": "321" } ], "opinion_index": 0, "case_paths": [ "/ill/323/0309-01" ] }, { "cite": "106 Ill. 584", "category": "reporters:state", "reporter": "Ill.", "case_ids": [ 2780796 ], "weight": 3, "year": 1926, "pin_cites": [ { "page": "595" }, { "page": "595" }, { "page": "596" } ], "opinion_index": 0, "case_paths": [ "/ill/106/0584-01" ] }, { "cite": "396 N.E.2d 298", "category": "reporters:state_regional", "reporter": "N.E.2d", "opinion_index": 0 }, { "cite": "77 Ill. App. 3d 641", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 3290665 ], "weight": 2, "pin_cites": [ { "page": "654-55" }, { "page": "654-55" } ], "opinion_index": 0, "case_paths": [ "/ill-app-3d/77/0641-01" ] }, { "cite": "469 N.E.2d 378", "category": "reporters:state_regional", "reporter": "N.E.2d", "opinion_index": 0 }, { "cite": "127 Ill. App. 3d 1031", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 3563217 ], "pin_cites": [ { "page": "1035" } ], "opinion_index": 0, "case_paths": [ "/ill-app-3d/127/1031-01" ] }, { "cite": "512 N.E.2d 1276", "category": "reporters:state_regional", "reporter": "N.E.2d", "year": 1984, "opinion_index": 0 }, { "cite": "159 Ill. App. 3d 818", "category": "reporters:state", "reporter": "Ill. App. 3d", "case_ids": [ 3612642 ], "year": 1984, "pin_cites": [ { "page": "831" } ], "opinion_index": 0, "case_paths": [ "/ill-app-3d/159/0818-01" ] } ], "analysis": { "cardinality": 810, "char_count": 15321, "ocr_confidence": 0.779, "pagerank": { "raw": 6.058463484087321e-08, "percentile": 0.3746199102727611 }, "sha256": "2a62065e619332d7b2e3b23367579271a55d4a2c5865c4e5ce2f6476d2139c52", "simhash": "1:0b9d25da7fa983d1", "word_count": 2410 }, "last_updated": "2023-07-14T21:35:27.168167+00:00", "provenance": { "date_added": "2019-08-29", "source": "Harvard", "batch": "2018" }, "casebody": { "judges": [], "parties": [ "In re ESTATE OF ELINOR E. LAAS, Deceased (The People ex rel. Neil F. Hartigan, Attorney General of Illinois, Respondent-Appellant, v. Charles L. Martin et al., Petitioners-Appellees)." ], "opinions": [ { "text": "PRESIDING JUSTICE HARTMAN\ndelivered the opinion of the court:\nThis is the second appeal involving the Elinor E. Laas estate in this court. Respondent, the Illinois Attorney General (Attorney General), appeals from an order granting petitions for executor\u2019s and attorney fees and expenses payable from decedent\u2019s estate. The issue raised in this appeal is whether the circuit court erred in granting the fee petitions without conducting an evidentiary hearing, sought by the State, to determine the reasonableness of the amounts requested.\nThe facts and circumstances are set forth in greater detail in our earlier opinion. It is sufficient to note for purposes of this appeal that on May 6, 1975, decedent Elinor Laas executed a will, later modified by the execution of a codicil on November 5, 1975. Decedent was adjudicated incompetent on January 28, 1976. She died June 16, 1983.\nCharles L. Martin, who served as conservator of decedent\u2019s incompetent estate and was appointed executor of the estate upon decedent\u2019s death, on January 4, 1984, filed a complaint in the circuit court seeking construction of the will in order to establish a valid charitable remainder unitrust as prescribed by the will. The complaint named as defendants the beneficiaries under the will and codicil. The residuary legatee charities set forth in their answer a counterclaim against Martin as executor, Robert Laas, decedent\u2019s son and residuary lifetime income legatee, and the remaining legatees. The counterclaim requested construction of certain ambiguities in the will and further alleged that, if Martin\u2019s construction prevailed, the residuary gift to the charities set forth in the will would be lost. Martin and Laas successfully moved the court to dismiss the counterclaim and the charities appealed. This court affirmed the circuit court\u2019s order in In re Estate of Laas (1985), 134 Ill. App. 3d at 512.\nPursuant to the supplemental proceedings described above, Martin retained the services of the law firm of Schuyler, Roche and Zwirner (Schuyler) in February 1984, to act as cocounsel to attorney Walter Baron (Baron) during the course of the litigation. Baron had worked as Martin\u2019s attorney \u201csince the inception of the estate.\u201d\nThe law firm of Mayer, Brown and Platt (Mayer) acted as counsel for the charities during the supplemental proceedings. Robert Laas, in turn, hired attorney James Teborek (Teborek) to represent his interests in the probate of decedent\u2019s estate, including the supplemental proceedings.\nTeborek filed with the court, on January 9, 1987, a petition and time sheets itemizing expenses and fees generated by the supplemental proceedings and other tasks associated with the probate of the estate from January 1984 through December 1986. The amount sought from the estate totalled $30,362.50.\nAlso on January 9, 1987, the charities filed a petition requesting from the estate $30,609 for fees and expenses incurred by Mayer in representing the charities from August 1983 through December 1986. Time sheets and the affidavit of Charles Newlin, a partner at Mayer, accompanied the petition.\nOn the same day, Martin, Schuyler and Baron similarly filed petitions and affidavits with the court, requesting: \u201cat least\u201d $125,000 in executor\u2019s fees for Martin; $165,632.27 in fees and expenses for Baron; fees of $170,000 for Schuyler; and an additional $2,629.95 for expenses. Baron and Schuyler also submitted itemized time and expense sheets.\nThe charities filed responses to the petitions of Teborek, Martin, Baron and Schuyler on January 16, 1987, asserting that the payments requested were excessive and the result of duplicative, wasteful and unnecessary work. The charities asked the court to deny the petitions and conduct an evidentiary hearing to determine the appropriate compensation for each petitioner.\nThe Attorney General also filed responses on January 16, 1987, and January 21, 1987, contesting the fee and expenses petitions submitted by the charities, Martin, Schuyler, Baron and Teborek. Challenging compensation requested by Martin as excessive, the Attorney General suggested payment for Martin not to exceed $50,000. The Attorney General further found the executor\u2019s attorneys\u2019 time sheets indicated wasteful, duplicative and unjustifiable charges, and recommended a ceiling of $164,000 for fees and expenses for all attorneys representing Martin\u2019s interests. As to Teborek, the Attorney General maintained the attorney\u2019s total services should be valued at no more than $15,000 and that much of the work billed was duplicative; certain tasks for which Teborek sought compensation were not chargeable to the estate by a legatee attorney; and time expended on certain services and the charges for those services were excessive. The charities\u2019 fee petition, in turn, was attacked by the Attorney General for inadequate itemization of work performed and seeking payment for services not compensable by the estate.\nMartin\u2019s responses to the charities\u2019 and Teborek\u2019s petitions were filed on January 20, 1987; questioned whether certain duties performed by each of the petitioners were properly compensable by decedent\u2019s estate; and asked that the court determine correct and adequate remuneration for Teborek and Mayer. On February 10, 1987, Teborek filed his response to Martin\u2019s, the charities\u2019 and Attorney General\u2019s responses, rebutting their arguments, and justifying the fees and expenses requested in his petition.\nThe parties appeared before the court on January 29, 1987, and July 15, 1987, in a continuing effort to resolve disputes concerning the fee petitions and other matters concerning estate administration and subsequently met for status calls. A proposed settlement agreement was drawn. On August 26, 1987, the Attorney General asserted that the interests of the people of Illinois and the contingent remaindermen under the will were inadequately protected by the agreement and sought a hearing to determine the reasonableness of the agreed fees and expenses.\nThe charities responded that the possibility of the vesting of the contingent interests, or charities which would receive trust property should one of the existing charitable remaindermen cease to exist before Robert died, was \u201cvery remote.\u201d The circuit court agreed, conceding that, \u201cif the [Attorney General] had a direct interest in [the proceedings], I would most assuredly give [him] a *** hearing\u201d; however, the court found the Attorney General\u2019s interest \u201cextremely limited\u201d and \u201creally non-existent.\u201d The court further cited its obligation to \u201cterminate and resolve litigation\u201d and avoid incurring additional \u201ctime and expense\u201d in the proceedings. Finally, it expressed concern as to what might happen if the Internal Revenue Service statute of limitations were exceeded.\nThe court entered orders approving the settlement agreement and the specific fee and expense requests contained therein. The Attorney General filed a notice of appeal on September 25, 1987, requesting reversal of the August 26, 1987, order granting Martin\u2019s, Schuyler\u2019s and Baron\u2019s fees and remandment of the cause with instructions that the court conduct a trial on the merits of those payments.\nI\nThe Attorney General contends the circuit court erred in approving the fees without first conducting an evidentiary hearing to probe the reasonableness of the amounts requested.\nThe circuit court has broad discretionary powers in awarding executor and attorney fees (In re Estate of Halas (1987), 159 Ill. App. 3d 818, 831, 512 N.E.2d 1276; In re Estate of Hall (1984), 127 Ill. App. 3d 1031, 1035, 469 N.E.2d 378); nonetheless, interested parties to a probate proceeding must be given a \u201cmeaningful opportunity\u201d to challenge the validity of fees requested for services to decedent\u2019s estate, including examination of and an ability to test the reasonableness of the fees. (In re Estates of Rice (1979), 77 Ill. App. 3d 641, 654-55, 396 N.E.2d 298.) Under the Illinois Probate Act of 1975 (111. Rev. Stat. 1985, ch. llO1^, par. 1 \u2014 1 et seq.) an \u201cinterested party\u201d in relation to any probate proceeding includes one who has or represents a financial interest, property right or fiduciary status at the time of reference which may be affected by the proceedings. 111. Rev. Stat. 1985, ch. lKWa, par. 1 \u2014 2.11.\nThe Attorney General has been recognized judicially as the proper representative of the State, which is itself regarded as the ultimate cestui que trust to any charitable bequest, in all actions concerning the enforcement or administration of a charitable trust. (Newberry v. Blatchford (1882), 106 Ill. 584, 595; Stowell v. Prentiss (1926), 323 Ill. 309, 321, 154 N.E. 120; People ex rel. Hartigan v. National Anti-Drug Coalition (1984), 124 Ill. App. 3d 269, 276, 464 N.E.2d 690; People ex rel. Scott v. George F. Harding Museum (1978), 58 Ill. App. 3d 408, 413, 374 N.E.2d 756; Art Institute v. Castle (1956), 9 Ill. App. 2d 473, 478, 133 N.E.2d 748; Kolin v. Leitch (1951), 343 Ill. App. 622, 627, 99 N.E.2d 685.) An exception is acknowledged where the trustee of the charitable trust is himself a party to the proceedings. (Newberry v. Blatchford, 106 Ill. at 595.) Decisions admitting this exception, however, also assert the Attorney General\u2019s right to interpose to preserve the trust fund where it appears \u201cparties having charge\u201d of the corpus \u201cunite in an abuse of their trust, and there is no one having a right to sue in his own name concerning it, as is the case with regard to a public charity.\u201d (Northwestern University v. Wesley Memorial Hospital (1919), 290 Ill. 205, 221, 125 N.E. 13; Newberry v. Blatchford, 106 Ill. at 596; see also Kerner v. Thompson (1936), 365 Ill. 149, 153, 6 N.E.2d 131.) In that instance, the Attorney General's status transcends that merely of an interested or proper party to a necessary party. Northwestern University v. Wesley Memorial Hospital, 290 Ill. at 221.\nAscertainment of the presence or absence of abuse or mismanagement of a trust fund frequently is dependent upon the production of evidence at a hearing before the court. Whether abuse or mismanagement in the present case can be found or is absent cannot be determined because the court refused to conduct a hearing on the reasonableness of the various fees requested. The Attorney General alleges waste of trust funds in the payment of these fees. As representative of the people of Illinois, he holds an interest sufficiently important to require that the fee demands be subjected to the scrutiny of an evidentiary hearing.\nEvidently, the fee petitioners themselves recognized the need for the Attorney General\u2019s participation in these proceedings, having served him with a summons and complaint at the commencement of the supplemental proceedings. He responded by filing his appearance with the court. After having become a party, the Attorney General never sought to extract himself from the action, nor did any petitioner ever question, until the present appeal, whether the Attorney General was a proper party. Indeed, petitioners not only served him with notice and copies of virtually all accountings, pleadings and documents generated by the probate proceedings, but at no time raised any objection to his participation therein at any stage.\nFrom the foregoing, it appears that the court erred in ruling that the Attorney General\u2019s interest was too remote to challenge the fee agreement and denying the evidentiary hearing he demanded.\nII\nThe fee petitioners insist the Attorney General received sufficient opportunity to contest the agreement in proceedings below, making any further hearings unnecessary.\nThe parties appeared before the court at least six times to discuss, inter alia, the fee petitions and the settlement agreement; however, those present limited each appearance to argument concerning the petitions and the agreement and rearranging the pretrial calendar. No evidence was ever taken.\nAbsent the ability to cross-examine opponents and introduce evidence, it cannot be said that the court afforded the Attorney General a \u201cmeaningful opportunity\u201d to challenge petitioners, nor can petitioners realistically argue that any evidentiary hearing occurred. See In re Estates of Rice, 77 Ill. App. 3d at 654-55.\nIII\nPointing to a recent amendment to section 24 \u2014 2 of the Probate Act (111. Rev. Stat. 1985, ch. llCP/a, par. 24 \u2014 2; Pub. Act 85 \u2014 994, eff. Jan. 5, 1988) and the determination of the Federal estate tax on decedent\u2019s estate, the fee petitioners assert that the- question of the Attorney General\u2019s entitlement to an evidentiary hearing is moot and that the appeal involves no real controversy. Handley v. Unarco Industries, Inc. (1984), 124 Ill. App. 3d 56, 69, 463 N.E.2d 1011; Kohan v. Rimland School for Autistic Children (1981), 102 Ill. App. 3d 524, 527, 430 N.E.2d 139.\nIn the case sub judice, petitioners fail to persuade as to how controversy is absent. It is clear that the Attorney General and petitioners actively and vigorously disagree as to the proper remuneration for the executor and attorneys servicing the estate, and the Attorney General\u2019s right to demand an evidentiary hearing regarding those fees.\nFurthermore, the argument that the IRS calculated estate taxes incapable of review or adjustment is meritless. At the August 26, 1987, hearing, both the court and the charities admitted the existence of IRS review procedures, available even after the statute of limitations for filing a tax return expires. The IRS code, moreover, contains mechanisms with which to challenge agency decisions. See 26 U.S.C.A. \u00a76511 (West Supp. 1988).\nFinally, nothing in the recent amendment to the Probate Act is contrary to the foregoing conclusions. The amendment provides that hearings concerning an estate representative\u2019s accountings to the court no longer require notice to estate beneficiaries where the trustee of their beneficial interests is an \u201cinterested person\u201d as defined by the statute. (Pub. Act. 85 \u2014 994, eff. Jan. 5, 1988.) The controversy at bar, however, arose not over the adequacy of Martin\u2019s accountings to the court, but rather over his fee petitions and similar petitions submitted by persons performing services for the estate. See, e.g., Norris v. Estate of Norris (1986), 143 Ill. App. 3d 741, 493 N.E.2d 121; In re Estate of Neisewander (1985), 130 Ill. App. 3d 1031, 474 N.E.2d 1378; In re Estate of Winston (1981), 99 Ill. App. 3d 278, 425 N.E.2d 973.\nFor the foregoing reasons, we reverse the order of August 26, 1987, approving the executor and attorney fees of Martin, Schuyler and Baron and remand for further proceedings consistent with the views expressed in this opinion.\nReversed and remanded.\nBILANDIC and SCARIANO, JJ., concur.\nIn re Estate of Laas (1985), 134 Ill. App. 3d 504, 480 N.E.2d 1183.", "type": "majority", "author": "PRESIDING JUSTICE HARTMAN" } ], "attorneys": [ "Neil F. Hartigan, Attorney General, of Springfield (Floyd D. Perkins and Matthew D. Shapiro, Assistant Attorneys General, of Chicago, of counsel), for appellant.", "Daniel M. Schuyler and Carol M. Petersen, both of Schuyler, Roche & Zwimer, and Walter R. Baron, both of Chicago, for appellees." ], "corrections": "", "head_matter": "In re ESTATE OF ELINOR E. LAAS, Deceased (The People ex rel. Neil F. Hartigan, Attorney General of Illinois, Respondent-Appellant, v. Charles L. Martin et al., Petitioners-Appellees).\nFirst District (2nd Division)\nNo. 87\u20143025\nOpinion filed June 14, 1988.\nNeil F. Hartigan, Attorney General, of Springfield (Floyd D. Perkins and Matthew D. Shapiro, Assistant Attorneys General, of Chicago, of counsel), for appellant.\nDaniel M. Schuyler and Carol M. Petersen, both of Schuyler, Roche & Zwimer, and Walter R. Baron, both of Chicago, for appellees." }, "file_name": "0916-01", "first_page_order": 938, "last_page_order": 945 }