v.
Repel
2015 IL App (1st) 133382
FIRST DIVISION MARCH 30, 2015
No. 1-13-3382
MARY CAVITT, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County. ) v. ) No. 95 D 79903 ) STEVEN REPEL, ) Honorable ) Pamela E. Loza, Defendant-Appellee. ) Judge Presiding.
JUSTICE CUNNINGHAM delivered the judgment of the court, with opinion. Presiding Justice Delort and Justice Harris concurred in the judgment and opinion.
OPINION
¶1 This appeal arises from the May 18, 2011 order entered by the circuit court of Cook
County, which granted the motion of defendant Steven Repel 1 (Steven) to dismiss a "petition to void" filed by plaintiff Mary Cavitt (Mary) to vacate a 1997 judgment for child support, pursuant to section 2-1401 of the Illinois Code of Civil Procedure (the Code) (735 ILCS 5/2-1401 (West
2010)). This appeal also arises from the circuit court's February 5, 2013 order imposing attorney fees and costs upon Mary. On appeal, Mary argues that: (1) the circuit court erred in dismissing her section 2-1401 petition without conducting an evidentiary hearing; and (2) the circuit court
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¶7 On April 12, 1996, the circuit court 2 entered an order requiring the parties to "exchange financial records sufficient to determine income since January 1st, 1995 to present."
¶8 On May 9, 1996, attorney Mary Beth Powers (Attorney Powers) filed her appearance before the court as counsel for Mary.
¶9 On July 24, 1996, Mary, through Attorney Powers, filed written discovery against Steven for the disclosure and production of documents relating to Steven's assets and income. In August
13, 1996 Rule 13.3(a) and (b) (Cook Co. Cir. R. (eff. Jan. [1], 1996) financial disclosure statements, Steven represented that he was self-employed; that his total gross monthly income was $2,008; that he earned a net monthly income of $1,007 after tax deductions; that he had living expenses of $700 per month; that he owed creditors about $187,000; that his student loans
were in "default"; that he owned no investment accounts or securities; that he owned 50% of "equitable interest only" in business entity "S+G Partners"; that real estate property at 1852 W.
Thomas Street in Chicago was transferred to S+G Partners in 1992 and then to "William & Mary
Repel" in 1993; that he had no health insurance coverage; and that he owned about $5,000 in miscellaneous personal property.
¶ 10 On January 13, 1997, the circuit court 3 entered a "Judgment for Parentage" (1997 judgment), which incorporated the parties' September 13, 1996 parental settlement agreement
(the settlement agreement). The September 13, 1996 settlement agreement, which was drafted by Mary's counsel, Attorney Powers, provided that the parties agreed that Mary shall have sole custody of Noah, subject to reasonable visitation rights by Steven; that Steven shall pay Mary
$500 per month in child support; that the parties acknowledged that Steven was unable to
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1-13-3382 contribute to the day care of Noah, but "the issues of day care shall be reserved until further order of Court"; that Steven shall tender his income tax returns to Mary each year; that Mary
shall maintain health insurance for Noah until such time as Steven is able to secure a policy of coverage through employment; that Steven shall maintain a life insurance policy for the benefit
of Noah; and that the parties shall pay for Noah's college expenses pursuant to section 513 of the Illinois Marriage and Dissolution of Marriage Act (750 ILCS 5/513 (West 1996)).
¶ 11 On May 5, 2000, Steven and Mieko's marriage ended in divorce. That marriage produced no children. The judgment for dissolution of marriage (case No. 00 D 7309), which incorporated
Steven and Mieko's marriage settlement agreement, stated that Steven was employed as an
attorney at a Chicago law firm with an annual income of $100,000; that Mieko had an income of $30,000 per year; that Steven shall pay Mieko maintenance of $2,500 per month for 36 months beginning on June 1, 2000; that Steven shall pay Mieko's health insurance coverage for one year; that Steven shall maintain a life insurance policy for the benefit of Mieko; that Mieko shall receive 50% of the value of Steven's IRA and SEP plans; that Mieko shall receive certain mutual funds from Steven; that Mieko shall receive 100% interests in real estate properties 543 Sheridan
Road in Evanston, 2838-40 N. Albany Avenue in Chicago, and 1937 N. Damen Avenue in Chicago; that Mieko shall receive $72,000 in cash as property settlement from Steven; and that
Mieko shall receive 50% of any and all cash payments from Steven's share of the partnership
Berg, Repel & Berg.
¶ 12 On September 13, 2000, Mary, represented by new counsel Robert Schmit (Attorney
Schmit), filed a "petition for modification of child support" (petition to modify), arguing that
Steven's income and assets had increased substantially since the entry of the 1997 judgment.
The petition to modify sought to increase Steven's monthly child support obligations; to obtain 133385
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reimbursement from Steven for Noah's medical insurance; to require Steven to contribute to the day care costs of Noah; and to restrict Steven's visitation rights.
¶ 13 On November 1, 2000, Steven, acting pro se, filed a motion to modify his monthly child support payments to an amount less than $500, on the basis that he had lost his job at a law firm in September 2000 and that he had no income to continue paying the monthly support obligation as it existed.
¶ 14 On February 28, 2001, attorney Fred Lerner (Attorney Lerner) filed an appearance before the court as substitute counsel for Mary.
¶ 15 During the pendency of Mary's September 13, 2000 petition to modify, Mary engaged in extensive discovery—including deposing Steven, Mieko, Steven's former law partner, Steven's father, Steven's friend, Steven's second wife (Sarah Ludington) (Sarah), and Sarah's tenant, as
well as issuing dozens of subpoenas to these individuals and Steven's former clients, his in-laws, and various banks and business entities.
¶ 16 On July 16, 2004, Mary again obtained new counsel and attorney Regina Scannicchio
(Attorney Scannicchio) was granted leave of court to file her appearance as substitute counsel.
¶ 17 On January 26, 2005, the circuit court entered an order limiting Mary's discovery efforts to the date of the filing of her September 13, 2000 petition to modify, and specifically limiting
Mary's request of production of documents from Sarah to the date of October 6, 2001.
¶ 18 On June 20, 2005, Mary filed a motion to join Sarah, 4 Steven's second wife, as a party to
the litigation, alleging that Steven had demonstrated "a comprehensive pattern and practice of diverting, shielding and/or disguising his true income by, in part, jointly investing personal
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1-13-3382 and/or marital income and assets with [Sarah]; directing that income and/or gains derived from
such joint investments be made payable to [Sarah] rather than to himself; granting and/or transferring income and/or assets to [Sarah]; and/or otherwise directing that income due to him flow instead to [Sarah]." The motion to join Sarah also alleged that Sarah had "diverted monies from her joint account with [Steven] to accounts jointly held between herself and other parties."
¶ 19 On August 26, 2005, the circuit court 5 granted Mary's motion to join Sarah as a necessary party to the litigation in order "to reach a decision which will protect the interest of those who are before the court" and "to enable the court to make a complete determination of the controversy."
¶ 20 On August 18, 2006, Mary, through new counsel Joshua Jackson of Schiller, DuCanto
and Fleck (Attorney Jackson), filed a motion to join Mieko, Steven's ex-wife, as a party to the litigation, alleging that Steven attempted to shield his assets by transferring most of his assets to
Mieko during their May 2000 divorce; and that both Steven and Mieko worked together to shield
Steven's true income from the court—including proceeds from the sale of property located at
2838-40 N. Albany Avenue in Chicago, rental income and refinance funds from property located at 543 Sheridan Road in Evanston, and rental income from property located at 1937 N. Damen
Avenue in Chicago. On March 4, 2008, the circuit court 6 denied Mary's motion to join Mieko as a party.
¶ 21 On October 2, 2007, attorney Nicholas Stein (Attorney Stein) entered his appearance before the court as substitute counsel for Mary. On October 14, 2008, attorney Herbert
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Glieberman (Attorney Glieberman) was granted leave of court to file his appearance as additional counsel for Mary.
¶ 22 On October 15, 2008, on the eve of trial, Mary, through Attorney Stein, voluntarily dismissed her September 13, 2000 petition to modify pursuant to section 2-1009 of the Code
(735 ILCS 5/2-1009 (West 2008)).
¶ 23 On June 29, 2009, Attorney Glieberman, on behalf of Mary, filed a "petition for modification of child support and other relief" (2009 petition to modify), seeking retroactive child support based on the amount of Steven's past earnings for each year subsequent to the entry of the 1997 judgment; child support in the sum of $3,000 per month going forward; 50% of all monies Mary allegedly paid on behalf of Noah for medical attention, schooling and other needs
in the amount of $286,167.76; and proof of the existence of Steven's life insurance policy in the value of $100,000 designating Mary as a trustee. The 2009 petition to modify alleged that since
the entry of the 1997 judgment, there had been no modification to increase the amount of monthly child support, Steven's income had substantially increased to in excess of $150,000 per year, and Steven had "secreted" funds with Mieko and Sarah. The 2009 petition to modify did not name either Mieko or Sarah as parties, and did not reference the original September 2000 petition to modify that had previously been voluntarily dismissed by Mary on October 15, 2008.
The 2009 petition to modify also made no allegations that Steven had failed to pay the $500 monthly child support since the entry of the 1997 judgment.
¶ 24 On January 26, 2010, Mary, who was represented by new counsel Howard Schusteff
(Attorney Schusteff), filed an "amended petition for modification of child support and other relief" (2010 amended petition to modify), against both Steven and Sarah. However, Sarah was not served with process. The 2010 amended petition to modify again sought retroactive child
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support based on the amount of Steven's past earnings for each year subsequent to the entry of the 1997 judgment, and included all of the same allegations as those contained in the 2009 petition to modify. The 2010 amended petition to modify further alleged that Steven had purchased a Porsche Cayman Coupe automobile in 2007, that he had been referenced in a published article by Andrew Burr which stated that Steven was the property owner of a 50,000- square-foot flex facility on West Kinzie Street in Chicago and the property owner of a 26,000-
square-foot building for which he paid $350,000 to install a geothermal heating system. The 2010 amended petition to modify further alleged one count against Sarah, alleging that she
"aided and abetted" Steven, who "fraudulently diverted, shielded, and/or disguised income that
this [court] must consider so as to be able to determine 'net income' upon which to base the minimum duty of support owed by Steven in support of Noah"; that Steven and Sarah jointly applied for a loan to purchase a $700,000 home in Highland Park in November 2004 and that
Steven quitclaimed his entire interest in the Highland Park property to Sarah shortly thereafter;
that Sarah is the landlord of Steven's law office, for which Steven paid up to $3,000 per month in rent; that Steven wrote checks to Sarah for the "advance rent" on his office space in 2005; that he wrote several thousand dollars in checks from his Interest on Lawyers Trust Accounts (IOLTA) account to Sarah in 2005; that he transferred $245,145 to Sarah from December 2003 to June
2004; and that Sarah should be ordered to provide a complete accounting of any assets, funds, and interest that she had received from Steven. The 2010 amended petition to modify also did not reference the original September 2000 petition to modify that had previously been voluntarily dismissed by Mary on October 15, 2008.
¶ 25 On June 11, 2010, Steven, by his counsel Steven Verr (Attorney Verr), filed a motion to dismiss Mary's 2010 amended petition to modify, arguing, inter alia, that Illinois statutory law
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barred all claims of retroactive child support and expenses predating the filing date of the petition. On July 27, 2010, Attorney Schusteff filed, on behalf of Mary, a response to Steven's motion to dismiss the 2010 amended petition to modify. On August 24, 2010, counsel for Steven filed a reply in support of Steven's motion to dismiss the 2010 amended petition to modify.
¶ 26 On September 29, 2010, almost 14 years after the entry of the 1997 judgment, Mary filed
a "petition to void judgment for parentage" (petition to void) the 1997 judgment, on the basis of fraud. The petition to void alleged that, unbeknownst to Mary, at the time the parties entered into the 1996 settlement agreement, Steven was a partner of the law firm known as Berg, Repel
& Berg; Steven had been gainfully employed since 1986 and was a partner of the law firm since
November 1992; Steven obtained a $206,250 mortgage on the property located at 1852 W.
Thomas Street and obtained a $41,000 home equity loan in December 1996, which was recorded five days before the entry of the 1997 judgment; Steven quitclaimed property located at 1937 N.
Damen Avenue in Chicago to his then-wife, Mieko, in December 1996; and that Steven conveyed his 50% interest in the 1937 N. Damen Avenue property to Mieko under their divorce decree in May 2000. The petition to void further alleged that, in light of Steven's "intentional marital misrepresentations" and Mary's reasonable reliance upon them "which he knew would cause Mary to accept a settlement agreement which provided for significantly less child support obligations," the 1997 judgment (which had incorporated the settlement agreement) must be vacated or modified. Thereafter, the circuit court ruled that Mary's "petition to void" was actually a petition filed under section 2-1401 of the Code (735 ILCS 5/2-1401 (West 2010)).
¶ 27 On November 22, 2010, Steven filed a "request for the admission of fact" (requests for admission) pursuant to Illinois Supreme Court Rule 216 (eff. May 30, 3008). On December 3, 2010, Mary, through Attorney Schusteff, filed a motion to strike and dismiss Steven's requests
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1-13-3382 for admission, arguing that the requests were excessive, abusive, and propounded to delay his response to her section 2-1401 petition. On January 3, 2011, the circuit court 7 entered an order directing Steven to limit his requests for admission to a total of 50 requests, and identifying each of the requests that Mary must answer. On January 10, 2011, Mary filed answers to Steven's
requests for admission, objecting to most of the requests as vague, conclusory, compound, irrelevant, and lacking specificity. On January 31, 2011, Steven filed a motion to strike Mary's answers to his request for admission (motion to strike answers), arguing that the answers lacked truthful foundation, were belied by the record, and were otherwise improper, and requesting that he be awarded attorney fees and costs pursuant to Illinois Supreme Court Rule 219(b) (eff. July
1, 2002).
¶ 28 On March 14, 2011, a hearing on Steven's motion to strike answers was held, during which Mary's counsel, Attorney Schusteff changed 12 of Mary's previous answers from "denials"
to "admissions." Specifically, under request No. 60, Mary admitted that, prior to September 28, 2008, she had indeed previously accused Steven of "fraud" with respect to the entry of the 1997 judgment.
¶ 29 On April 18, 2011, Steven filed a motion to dismiss Mary's section 2-1401 petition, arguing, inter alia, that Mary was time barred from alleging fraudulent concealment against
Steven, where she had judicially admitted that she was aware of the supposed "fraud" more than two years prior to the filing of the section 2-1401 petition.
¶ 30 On May 18, 2011, following a hearing on Steven's motion to dismiss the section 2-1401 petition, the circuit court 8 dismissed the section 2-1401 petition with prejudice, granted Steven