Gitlin 508
Gitlin 508
Gitlin 508
Since June 1, 1997 detailed legislation has been in force controlling attorney's fees in divorce
and matrimonial law matters (cases under the Illinois Marriage and Dissolution of Marriage Act).
While there was the promise to quickly amend this legislation to address some of the significant
concerns, until 2009 there were no significant amendments. The 1997 legislation applies to
attorney's fees as between the parties and to an attorney seeking fees against the client. We have
now had nearly seventeen years of experience in working with the group of amendments
commonly referred to as the Leveling of the Playing Field legislation.
As any competent Illinois family lawyer knows, the so called Leveling of the Playing Field
(Leveling) legislation is broken up into various sections of the IMDMA, specifically sections
102, 501, 503 and 508. This article seeks to provide comprehensive sense of the key areas of
dispute regarding the legislation and discuss the case law addressing this legislation and the 2009
Amendments.
The 1997 Leveling amendments were drafted and promoted by the Chicago Bar Association
Domestic Relations subcommittee. There were competing goals of the proponents of the 1997
legislation.
Law of Unintended Consequences: The Leveling legislation had the best of intentions. A goal
was to create pro-consumer legislation and more readily allow an attorney for the impecunious
spouse to seek interim fee awards. Shortly after the passage of the original Leveling
amendments, David Hopkins addressed the McHenry County Bar Association stressing that the
main goal was to streamline interim fee cases especially in large asset cases where the fee
hearing might span multiple days.
But a competing goal of the 1997 amendments was to codify the IRMO Pagano, Sec. 2-1401
decision, 181 Ill.App.3d 547 (2d Dist. 1989), which found an inherent conflict of interest
inherent in fee awards sought by a lawyer against his or her own client. Pagano was one of
several decisions involving the Rinella law firm decisions adverse to Illinois lawyers in fee
disputes.
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While at The Gitlin Law Firm, I formally and informally surveyed lawyers in Illinois regarding
their experience with the original Leveling amendments. Before the amendments more attorneys
would represent the less wealthy spouse under previous law and seek an award of fees at the
conclusion of the case. But the various hurdles created by the Leveling amendments have given
Illinois matrimonial lawyers a disincentive to do so. The key disincentive is the requirement for
the lawyer to withdraw and then generally wait until following the end of the case to be able to
potentially obtain a fee award against his own client.
Probably the most significant disincentive is the complexity of the legislation itself. An example
is the perceived requirement that the attorney must withdraw before filing a petition for fees
against his or her own client. While there is a vehicle that supposedly could be used to work
around this problem -- the praecipe procedure, few lawyers understand how this praecipe
procedure works. So, it is commonly misunderstood that withdrawal of an attorney is required
before the attorney may file a petition for fees against her or his own client. It is true that the fee
hearing cannot take place until after the lawyer's withdrawal.
Disincentive towards Deferred Fees
Lawyer Who Remains in Case Until Conclusion Seeking Fees: There are two
scenarios in which a lawyer may seek fees from his client -- either the lawyer will choose to
withdraw from a case while the case still is pending, or the lawyer will handle the case to its
conclusion hoping to be paid at the conclusion of the case.
Client Consent: Assume the best-case scenario -- the lawyer representing the
impecunious spouse handles a case to its conclusion and the client states she will agree to a
consent judgment. Enter the world of Section 508(d). Even with a consent fee judgment, rather
than merely including language within the marital settlement agreement, now the lawyer must
file four separate legal documents: Petition for Consent Fee Judgment, Affidavit of Counsel;
Affidavit of Client; and Proposed Judgment as Agreed. Fortunately, with the 2009 amendments
the lawyer would no longer necessarily have to file with the court all of the itemized billings. I
drafted this portion of the 2009 amendments because it serves the end of the clients greater
privacy.
But submitting these four forms is not sufficient to enter a consent judgment. The timing
requirements provide:
The petition may be filed at any time during which it is permissible for counsel of
record to file a petition (or a praecipe) for a final fee hearing, except that no such
petition for entry of consent judgment may be filed before adjudication (or
waiver) of the client's right to contribution under subsection (j) of Section 503 or
filed after the filing of a petition (or a praecipe) by counsel of record for a fee
hearing under subsection (c) if the petition (or praecipe) remains pending.
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So, if the statute is followed strictly, the lawyer would wait until the clients right to contribution
against the spouse or former spouse has been waived. But then, can that waiver be within the
consent judgment, itself. Or would that waiver need to be part of an overall settlement
agreement. Whatever the answer to such questions that remain unanswered 16 years later, one of
the only things that can be said with certainty regarding the legislation is that it continues to
present a riddle, wrapped in a mystery, inside an enigma. This is a fitting triad given that to
understand the legislation, one must go back and forth among three separate portions of the
statute.
Without Client's Consent: Now welcome to the world of Section 508(c) or (e).
Without the client's consent for a fee award at the conclusion of the case, there are more
obstacles for the lawyer who has not been paid as a case progresses. The lawyer files the
appropriate documents. First, the lawyer must go through ADR (or opt out of ADR in counties
other than Cook). Next, the lawyer must file a motion to withdraw or follow the less than clear
praecipe procedure for a final fee hearing. Under this praecipe procedure instead of withdrawing
the lawyer may choose to file a praecipe for fee hearing without the petition reserving the
lawyer's rights to file a petition at a later date. The cut-off time for filing a petition at such later
date is 60 days after filing the praecipe. In the usual case the petition or the praecipe must be
filed within 30 days after the judgment. Then, the lawyer is in a position to file a petition for
setting final fees and costs against his own client.
The bottom line is that in the usual case the lawyer representing a non-paying party is forced to
withdraw to seek attorney's fees. Because the praecipe procedure is only tangentially addressed
in the legislation, I have not encountered a lawyer who uses it to avoid the necessity of
withdrawing from the client's representation. Once the lawyer has withdrawn, and even if the
lawyer and former client have opted out of ADR, the former client would be allowed time to
select his or her own attorney, to file a responsive pleading to the underlying petition, etc.
Lawyer Who Withdraws While Case Pending Seeking Fees: If the lawyer withdraws
or is otherwise discharged while a case is still pending, the lawyer has two alternatives: 1) wait
90 days following a withdrawal and file a complaint at law for fees in independent proceedings;
or 2) file a petition in the underlying proceedings, go through ADR (or opt out if appropriate),
monitor the case and wait until the conclusion of the case to go forward with a hearing on
petition for setting final fee hearing.
Independent Proceedings: Allowing a lawyer the ability to choose to wait 90 days and
go forward with independent proceedings undermines the rationale of the previous line of cases
suggesting that while a case was pending it was a matter of judicial economy to have the fees
litigated before the same judge, i.e., the judge who heard the underlying proceedings. Additional
complexity in bringing such an independent action exists because in many of these cases the
spouse who owes attorney's fees has the lesser ability to pay for the same. Rather than bring a
third-party complaint as outlined in the statute, it is possible that a party might become upset
because he or she must hire a lawyer to represent him or her in third party proceedings, etc.
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Proceedings within Divorce Case: If the lawyer chooses to file a petition in the
underlying divorce case, the lawyer must first file a petition for setting final fees and costs,
supported by an affidavit and incorporating a copy of the written engagement agreement together
with the statement of client's rights and responsibilities. Next, depending upon the county where
the proceedings are pending, there may be required ADR. The most significant hurdle of the
legislation is not the requirement for ADR but the prohibition against seeking a hearing until
there has been a 503(j) contribution judgment. The 503(j) pre-judgment contribution petition
supposedly is to be heard after proofs are closed in the final hearing ... (or in conjunction with
the final hearing if the parties so stipulate). Thus, the lawyer has to wait in the usual case until
the close of proofs before the court could hear a petition for fees against the former client.
Complicating matters further is that in the vast majority of cases there is no specific close of
proofs, but the matter is resolved by proving up the marital settlement agreement. How does
the discharged lawyer learn of the date of the prove-up, etc.? Most courts will require the
attorneys to give notice to former counsel of the date and time of any final hearing. The attached
two-count form specifically requests that the attorney seeking fees be given notice of the date
and time of the final hearing.
Even if the lawyer is given notice of the final hearing, in many cases the parties often choose that
the former client (who has the lesser ability to pay for attorney's fees), will pay exclusively for
any attorney's fees. Because this is often the scenario, after the 1997 amendments I had drafted a
two-count petition which incorporated both a request for fees from the client as well as a request
for fees from the opposing party. I pointed out that it could be argued on behalf of the former
client that the lawyer does not have privity with which to bring such a petition. And I pointed
out the counter-argument to this which was then based on the Lee v. Lee decision, 302 Ill.App.3d
607 (1st Dist. 1998), GDR 99-2. Lee was decided under the language of the statute before the
1997 amendments. According to this decision, the parties cannot, by a marital settlement
agreement provision, provide that each party will be responsible for his and her own attorney's
fees and thus preclude an attorney from seeking fees against the party with the greater ability to
pay when there is a previously filed fee petition. More specifically, Lee had stated:
The fee-shifting provisions of section 508, coupled with the court's ability to
award fees directly to the attorney, provide an incentive for attorneys who might
otherwise decline to represent spouses with few financial resources of their own.
Thus, the attorney's right to proceed against the other spouse for an award of fees
is oftentimes essential to a spouse's ability to procure legal representation.
We conclude, therefore, that a marital settlement agreement which purports to
allocate attorney fees will not, as a general rule, extinguish the statutory right of a
spouse's prior attorney to pursue an award of fees from the other spouse. Were we
to hold otherwise, access to representation by y spouses would be seriously
compromised and with it, the integrity of dissolution of marriage proceedings.
I have noted that the Lee was decided shortly before the enactment of the Leveling
amendments. It has now been confirmed by the Second District 2011 Rocca decision, 408 Ill.
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App. 3d 956 discussed below. But keep in mind that both Lee and Rocca involved decisions in
which a lawyers fee petition was on file before the settlement agreement was reached.
The danger, however, to the lawyer in pursuing such a petition where the former client does not
want to seek an award of fees from the former spouse is the possibility of receiving an ARDC
complaint from the former client. The reason such a complaint is a significant possibility is that
the discharged lawyer will be seen as standing in the way of an agreement that has ostensibly
been reached between the parties as to all issues.
Most lawyers are aware of the studies showing a client's satisfaction in a divorce case is highest
at the commencement of litigation and shortly before the prove-up of the case. After the case is
concluded, the client's reported satisfaction with the lawyer steeply declines. Thus, the lawyer
who seeks to be paid a substantial amount of attorney's fees following resolution of the case
faces a client who usually no longer perceives a great value for the services rendered. The
manner in which the Leveling amendments are drafted ensure that a lawyer cannot sue the
former client until after the ex-client's perceived value for services rendered is at its lowest point.
Thus, the unintended consequence of the Leveling amendments has been that fewer lawyers will
agree to defer being paid for services rendered until the conclusion of the case. Certainly this
result could be perceived as being consumer-hostile because many spouses greatly in need of
quality representation cannot afford to pay for the same while the case is progressing. Under the
Leveling amendments, such litigants often find it more difficult to find appropriate
representation. Keep in mind that one of the significant goals of the legislation was to recognize
and codify the perceived conflict of interest where a lawyer sues his own client for attorney's fees
while a case progresses.
While it can be argued that the provisions for interim attorney's fees make it easier to obtain fee
awards while a case progresses, the awards are usually only a small percentage of the overall
fees incurred. Seventeen years of experience with the Leveling amendments has demonstrated
that the interim fee portion of the statute has a limited impact on an attorney's ability to be paid
for services rendered while a case progresses.
Interim Fees and Parentage and Post-Divorce Applicability: Additional complexity with the
Leveling amendments is caused by the legislation not yet being further amended to specify
whether the interim fee provisions applied to parentage proceedings. And it had been an open
question about whether the interim fee statute applied to post-decree proceedings. These issues
were generally clarified with the 2009 amendments. The language that was finally adopted to
address these concerns now states, Interim attorney's fees and costs may be awarded from the
opposing party, in a pre-judgment dissolution proceeding in accordance with subsection (c-1) of
Section 501 and in any other proceeding under this subsection. So, then in non-divorce (read
parentage cases) or post-decree divorce cases, we first look to the language of Section 508 which
later states, simply: All petitions for or relating to interim fees and costs under this subsection
shall be accompanied by an affidavit as to the factual basis for the relief requested and all
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hearings relative to any such petition shall be scheduled expeditiously by the court.
The specific interim fee at Section 501(c-1), in turn, reads, in part:
(1) Except for good cause shown, a proceeding for (or relating to) interim attorney's fees and
costs in a pre-judgment dissolution proceeding shall be nonevidentiary, and summary in
nature, and expeditious. All hearings for or relating to interim attorney's fees and costs under
this subsection shall be scheduled expeditiously by the court.
The 2009 amendments make it clear that that there is no presumption for a non-evidentiary and
summary hearing in post-decree cases. This hearing only applies to pre-decree dissolution type
cases. But all interim fee awards both pre-decree and post-decree are still supposed to be
handled expeditiously whatever import the court may provide to that word.
The 2009 Amendments also provide that the interim fee factors the court is to consider are those
that appear reasonable and necessary, including to the extent applicable:...
Parentage Proceedings: The Illinois Parentage Act of 1984 states at 17 that, [T]he
court may order reasonable fees of counsel, experts and other costs of the action, pretrial
proceedings, post-judgment proceedings to enforce or modify the judgment and the appeal or the
defense of an appeal of the judgment to be paid by the parties in accordance with the relevant
factors specified in 508 of the Illinois Marriage and Dissolution of Marriage Act. Therefore,
the amendments to 508 apply to parentage proceedings. This means that the statement of
client's rights must be attached to the engagement agreement in parentage proceedings.
Parentage / Removal Case Law: Since 508 incorporates by reference 501(c-1)
and 503(j), there had been the question of whether these sections would be incorporated by
reference in parentage cases by IPA 17. Based upon the line of parentage cases such as the
parentage removal case law, I had urged that only the portion of the statute directly referred to
would be incorporated by reference that is Section 508 and not the contribution statute and the
interim fee statute. In fact, this was the reason the 2009 amendments now differentiate between
dissolution cases which are those cases brought specifically under the Illinois Dissolution of
Marriage Act rather than those non-dissolution type cases where Section 508 is incorporated
by reference that is cases brought under the Illinois Parentage Act of 1984.
No Disgorgement in Parentage Cases per Stella I: In the original Stella v. Garcia
opinion (Stella I), 339 Ill. App. 3d 610 (2003), the First District addressed this incorporation by
reference issue and stated:
We take In re Parentage of Melton and In re Adams to mean only those Marriage
Act relevant factors and standards expressly embraced by the Parentage Act may
be applied by trial judges in parentage cases. These would include a section 508
provision that permits awards of attorney's fees to be paid directly to attorneys,
Heiden v. Ottinger, 245 Ill. App. 3d 612 (1993); and a section 508 provision that
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1)(1), (2), and (3) of the [Marriage Act] without considering disgorgement?"
We answer the certified questions "yes" and "yes."
The Stella II court first commented that, Neither of the articles written by the bar association
committees that promoted the 1997 amendments suggests that the level playing field provisions
in subsection (c-1)(3) were intended to apply to parentage actions. Stella II then stated, Our
courts have held attorney's fees cannot be awarded in paternity actions without contractual or
statutory authority. That flat statement does not resolve our inquiry, it begins it. The labored
reasoning of the appellate court then suggests, While section 17 makes no specific reference to
interim fees, it requires entry into section 508, which does. In defense of its position the court
opines, We do not see that the lack of a marital estate as a source of fees has any particular
bearing on our resolution of legislative intent.
I had disagreed Stella II but my concerns have party been addressed by the January 1, 2009
amendments. The opinion had seemed persuasive until one recognizes a key difference between
parentage cases and divorce cases, i.e., the lack of a marital estate in parentage cases. As I had
pointed out, a key safety valve provision in divorce cases was that while the proceedings are
summary in nature any overpayment may be recovered at the conclusion of the case because
all fees would be deemed an advance against the marital estate. There simply is no marital estate
in parentage cases so overlaying this statute makes little sense. It was for this reason that the
2009 amendments provided, in essence, that interim fees were to be awarded under the standards
of Section 508 only when applied to non-divorce cases or cases that are post-decree.
Recently, there was an excellent discussion about how poorly drafted overall the statutory
scheme is when one considers what I refer to as the multiple incorporation by reference issue.
IRPO Rocca, 408 Ill. App. 3d 956 (2nd Dist., 2011) addressed this issue somewhat tangentially.
In dealing with the incorporation by reference of the IPA of 1984 (17 referring only to 508 and
then the incorporation from 508 the interim fee provisions and the contribution provisions, etc.)
the appellate court made a point that I have repeatedly made:
However, section 508 of the Marriage Act, which addresses attorneys fees;
clients rights and responsibilities respecting fees and costs, cross-references
other sections of the Marriage Act and, accordingly, consideration of the
relevant portions thereof as applied to the Parentage Act becomes more
complicated. Indeed, one court has referred to the process of turning to the
Marriage Act to assess attorney fees and costs under the Parentage Act as a
tortuous path. In re the Minor Child Stella, 353 Ill. App. 3d 415, 418 (2004).
[Note: I refer to that case as Stella v. Garcia or Stella II.
Stella II had ruled that interim fees may be awarded in paternity actions using the same factors
and procedures as in actions under the IMDMA. The first Stella case had ruled that there is no
disgorgement in parentage cases (Stella I).
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After drafting this article, an article was published in the ISBAs Family Law Newsletter
addressing the same issue, i.e., attorneys fees in paternity cases. See April 2005, Vol. 48, No. 3.
The authors of that article suggest that the language in Stella II might be used to argue against a
requirement of disgorgement by an attorney in divorce cases. The authors stated, The
authorizing paragraph of the Parentage Act is no more limiting: the court may order reasonable
fees of counsel... to be paid by the parties... Therefore, while this court has clarified that interim
awards are authorized and disgorgement orders are not, it may have opened the door to yet
another unintended consequence.
Nash -- Disgorgement of Interim Fees Requires Clear Finding of Inability on Behalf
of Both: IRMO Nash, 2012 IL App (1st) 113724 (Modified on Denial of Rehearing: October
2012).
Where the order was ambiguous as to the inability of both parties to pay interim attorney's fees
as required under section 501(c-1)(3) of the IMDMA, the trial court lacked authority to require
disgorgement. Accordingly, the disgorgement order was void and must be vacated.
Earlywine - Interim Attorneys Fees and Disgorgement: Illinois Supreme Court
Rules Advance Payment Retainer No Bar to Disgorgement
IRMO Earlywine, 2013 IL 114779 (October 2013)
There are not many disgorgement cases. The issues addressed by the Illinois Supreme Court
involved Separation of Powers, the Supreme Court Rules and the Dowling case. The question
was essentially whether the Supreme Court Rules and Dowling trumped the disgorgement
provisions when there is an advance payment retainer. The point is that with an advance
payment fees earned are not "available funds" under the statute. The Supreme Court somewhat
sidestepped this point. Also, construing the statute to make earned fees available for
disgorgement, will discourage attorneys from getting involved in low-income, low-asset cases.
The Supreme Court held:
It is clear from the attorney-client agreement that the advance payment retainer in this
case was set up specifically to circumvent the leveling of the playing field rules set
forth in the Act. To allow attorney fees to be shielded in this manner would directly
undermine the policies set forth above and would strip the statute of its power. If we were
to accept James argument, an economically advantaged spouse could obtain an unfair
advantage in any dissolution case simply by stockpiling funds in an advance payment
retainer held by his or her attorney.
The court also stated:
To the extent that James argues that the funds in his advance payment retainer were
obtained from Johns parents and are not marital property, we note that the statute does
not distinguish between marital property and nonmarital property for the purpose of
disgorgement of attorney fees. The statute contemplates that retainers paid on behalf of
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(and, in turn, that petitioner requested) were theoretically reasonable, the record
does not reflect that petitioner in any way established respondents ability to pay
the amount that the court, in fact, awarded. Thus, we reverse the November 6,
2009, interim fee award.
Substantial Interim Fee Affirmed Despite the Fact that the Party Receiving
Substantial Fee Award Had Already Been Paid More than Other Party / No Right to PreDecree Evidentiary Hearing: IRMO Levinson, 2013 IL App (1st) 121696, recently affirmed a
substantial interim fee award. The syllabus of this case provided an accurate summary: In an
unusually litigious marriage dissolution action, the trial court did not abuse its discretion in
ordering respondent to pay $78,500 in interim fees (including expert fees) for petitioner based on
consideration of the statutory factors and the financial information indicating that respondent
controlled the marital assets and had the means to pay the fees. One issue is whether there
should have been an evidentiary hearing as in Radzik. The appellate court distinguished the
case:
In the present case, the interim fees awarded were not ordered to be paid from a
liquidated IRA or any other retirement account. In addition, the Radzik courts
concern in reversing and ordering an evidentiary hearing was that the petitioner
had not included supporting documentation that the respondent could pay the
requested interim fee award, and the court had reason to believe the minimal
documentation provided was inaccurate. These concerns are not present in the
case at bar. Rather, Robin supported her motion for interim fees with substantial
documentation . Roberts reliance on Radzik is unpersuasive.
Case Law Re Contribution Petitions: The common theme of case law addressing the Leveling
Amendments is that the changes make it more difficult for lawyers and appellate courts to
understand the complexities of the statute. Recent case law also points out the less than
revolutionary aspects of the Leveling amendments.
McGuire Changes Are Procedural and Not Substantive vs. Haken Inability /
Ability is Not the Standard: Specifically, in IRMO McGuire, 305 Ill.App.3d 474 (5th Dist.
1999), GDR 99-60, the appellate court held the Leveling amendments make only procedural
changes, while keeping intact the substantive criteria for awards. In light of the 2009 second set
of amendments, however, and the more recent case law, this is oversimplified. Keep in mind the
2009 amendments provide for differing standards regarding pre and post-judgment proceedings.
Now, if one were urging that the amendment s are largely procedural (as this case urges) you
would point to the historical case law not sticking with the inability / ability standard but
instead focusing on the relative abilities.
In any event, McGuire held a contribution award was not mandatory even though the
party seeking the fee award received a disproportionate property division. In contrast to the
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McGuire decision stands the IRMO Haken, 394 Ill. App. 3d 155 (Fourth Dist., 2009) case. Haken
contains a succinct discussion of the historical ability/inability standards which are even more
important to note in light of the 2009 amendments when read in connection with the case law
following the 2009 amendments. Haken, which thus represents the standards that apply both before
the 1997 amendments and after the 2009 amendments as applied to post-judgment proceedings,
states:
Rudolf argues the award of fees under section 508(a) was improper because the
petitioning party must prove an inability to pay fees and the ability of the other
party to pay. Here, the court found each party had the ability to pay his or her own
fees. Rudolf contends "inability to pay" is a prerequisite to a fee award under
section 508(a). Such a reading of this section eviscerates the statutory directive in
section 503(j)(2) to consider the criteria for the division of marital property under
section 503(d) in making contribution awards. Under Rudolf's reading of section
508(a), once a court finds a party has the ability to pay his or her own fees, further
inquiry ends and the court need not look at any other factor to determine whether
contribution should be made. Rudolf is wrong. ***
The statute directs the court to consider many factors when deciding the amount of
contribution a party may be ordered to make. The requirement that a person seeking
contribution show an inability to pay appears nowhere in the statute. The relative
financial standing of the parties should be considered, and that is what the section
503(d) factors are all about.
Dowd: Court Applies Ability and Inability Standard without Commenting on Statute
and Other Case Law: But even recently, Illinois case law still contains what I believe is sloppy
language not consistent with the statutory standards or case law such as Haken. IRMO Dowd, 2013
IL App (3d) 120140 (June 20, 2013) recently addressed the wifes petition for contribution and the
appellate court gave scant consideration to the case law and stated rather simply:
Sharon also contends on appeal the trial court erred by denying her petition for
contribution to attorney fees. An award for attorney fees is within the sound
discretion of the trial court and will not be disturbed absent an abuse of discretion. In
re Marriage of Morse, 240 Ill. App. 3d 296, 312 (1993). The propriety of an award of
attorney fees is dependent upon a showing by the party seeking them of an inability
to pay and a demonstration of the ability of the other spouse to do so. Id. In this case,
the trial court found that both parties have sufficient assets to pay their own
attorneys fees. We agree. Sharon received property and accounts valued in excess
of $200,000, excluding the value of the marital home and her maintenance award.
Based on this record, we conclude Sharon had sufficient income and assets to pay her
own attorney fees.
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several significant rulings, mostly related to contribution petitions. The DeLarco court ruled:
1.
Contribution Awards Does not Equate to Fee Equalization: The fee equalizing
portion of the statute, 501(c-1)(3) of the IMDMA applies only to temporary fee
awards. Equalization does not apply at the contribution hearing. The holding in
DeLarco regarding fee equalization not being a part of the contribution statute
is significant in light of the potentially confusing language of the statute. The
interim fee portion of the statute states that unless otherwise ordered all fees
paid shall be deemed an advance against the marital estate. The query was what
the phrase unless otherwise ordered refers to.
2.
3.
4.
5.
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without pain or sacrifice). Moreover, the appellate court commented that the wife was awarded
a disproportionate and substantial share of the marital estate (worth approximately $326,000).
Schneider is the newest of a line of cases which states that the court did not make a contribution
award in a case with litigation where both parties are to blame resulting in an expensive and
litigious divorce where there is no showing of "inability to pay." See, e.g., IRMO Aleshire, 273
Ill.App.3d 81(3d Dist.1995) [In cross-petitions for enforcement the court may apportion
attorney's fees in a manner that reflects the parties' relative culpability.] IRMO Mandei, 222
Ill.App.3d 933 (4th Dist. 1991). Trial court did not abuse its discretion in ordering each party to
pay own fees where the fees were generated largely from the result of the parties' unwillingness
to compromise.
Cases Citing Traditional Ability / Inability Adams and Heroy: A 2004 Illinois
appellate court decision addressing the issue of a fee contribution hearing took the traditional
view that fees should not be granted where one party has the ability to pay. In Adams, 348 Ill.
App. 3d 340 (3rd Dist, 2004), the appellate court reversed a fee award despite affirming the trial
court's increase in support. The appellate court stated:
The primary obligation for payment of attorney fees rests upon the party for
whom the services are rendered. In re Marriage of Mantei, 222 Ill. App. 3d 933
(1991). However, the court may order one spouse to pay some or all of the
attorney fees incurred by the other. 750 ILCS 5/508 (West 2000). In order to
justify an award of attorney fees, the party seeking the award must demonstrate
both financial inability to pay the fees and the ability of the other spouse to do so.
In re Marriage of Cotton, 103 Ill. 2d 346 (1984).
In this case, Carol's financial disclosure statement indicates that she had a savings
account with a balance of $74,000, as well as other financial assets. We conclude
that the trial court erred in awarding Carol attorney fees because the record shows
that she had the ability to pay her own attorney fees upon seeking the default
judgment.
A later case to also cite the traditional tests regarding awards of attorneys fees is the IRMO
Heroy decision where the appellate court commented:
Generally, it is the responsibility of the party who incurred attorney fees to pay
for those fees. In re Marriage of Nesbitt, 377 Ill. App. 3d 649, 656 (2007).
Section 508 of the Act, however, provides for attorney fee awards in
circumstances where one party lacks financial resources and the other has the
ability to pay. 750 ILCS 5/508 (West 2006); Schneider, 214 Ill. 2d at 174. It is
the party seeking contribution toward her attorney fees who bears the burden of
showing her insufficient financial resources and her spouses ability to pay.
Schneider, 214 Ill. 2d at 174.
In this case, both parties filed petitions for contribution to attorney fees in the trial
court. The trial court found that David and Donna had incurred over $2.2 million
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in attorney fees. After reviewing the pertinent factors outlined in the Act
pertaining to attorney fee contribution, the trial court ordered that each party is
responsible for his/her own fees. David, however, contends that [w]hen the
[trial] court allocated 55% of certain marital debt to David, *** it apparently
forgot that this same debt was incurred by the parties during the divorce
proceedings to pay attorneys fees. We agree. *** Although the parties
borrowed funds to pay for other costs in addition to attorney fees, there is no
dispute that some of the debt incurred by the parties during their dissolution
proceeding includes money borrowed to pay for their respective attorney fees and
costs. By failing to account for the portion of the debt associated with attorney
fees and costs prior to allocating a disproportionate share of the debt to David, the
court inadvertently required David to contribute to Donnas attorney fees, in
contravention of its express order that the parties be responsible for their own
fees. Donna does not contend nor does the record establish that she is unable to
pay for her attorney fees. See Schneider, 214 Ill. 2d at 174-75 (recognizing that an
attorney fee award is improper absent evidence of inability to pay). Accordingly,
David is entitled to a credit toward the portion of the marital debt encompassed by
Donnas attorney fees. Because the record is unclear as to portion of the marital
debt that is related to the parties attorney fees and costs, we remand this matter to
the trial court with directions to determine the portion of the debt encompassed by
Donnas attorney fees and to credit David accordingly.
Price Rejecting Ability / Inability Standard for Contribution Awards: IRMO Price,
2013 IL App (4th) 120155 (March 22, 2013), addressed the standard the court should apply
when considering a contribution awards. The appellate court stated:
Melvin asserts the court erred in ordering him to pay a portion of Jill's attorney
fees because the financial circumstances of the parties is substantially similar due
to the court's division of marital assets, liabilities, and Jill's maintenance award,
and because Jill failed to show an inability to pay her own attorney fees. Jill
argues the post-dissolution financial circumstances of the parties are not
substantially similar because Melvin was awarded all of the parties' businesses,
which produced gross annual incomes in excess of $1.7 million. We agree with
Jill.
The appellate court rejected the assumption that fees under the current statute are based on the
historical ability/inability standard. The appellate court stated that the standards in this case were
criteria for division of marital property under this Section 503 and, if maintenance has been
awarded, on the criteria for an award of maintenance under Section 504." 750 ILCS 5/503(j)(2).
I had assumed that this meant that if maintenance was awarded the fees were based on the
standards of Section 504 (without assuming that in cases with maintenance awards fees were
based on the standards of both Sections 503 and 504).
One recent case suggests the factors should include both the factors in 503 and 504. So,
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while Price does not clarify this potential distinction, Sobieski, discussed next, does address this.
Once again, Sobieski rejected the use of the traditional standard but in language that emphasized
relative financial abilities as the standard based on previous case law rather than the
ability/inability standard.
IRMO Sobieski, 2013 IL App (2d) 111146 (January 29, 2013), noted case law addressing
the financial ability and inability standards regarding fee petitions against the opposing party.
The Schinelli court cited general guiding principles: [t]he propriety of an award
of attorney fees is dependent upon a showing by the party seeking them of an
inability to pay and the ability of the other spouse to do so, and an award of
attorney fees will be reversed when the financial circumstances of both parties
are substantially similar and the party seeking fees has not shown an inability to
pay. Schinelli, 406 Ill. App. 3d at 995. These rules are not incorrect; they are,
however, incomplete when applied to the facts of this case. The language cited
in the analysis of the contribution award in Schinelli, as well as other recent
marriage dissolution cases, was repeated from cases that predate the current,
amended version of Section 508(a). See IRMO Haken, 394 Ill. App. 3d 155, 162
(2009) (providing examples from the First, Second, Fourth, and Fifth Districts of
our Appellate Court); see also IRMO Roth, 99 Ill. App. 3d 679, 686 (1981)
(preamendment case cited by Schinelli for rule that court abuses its discretion in
awarding attorney fees when parties are in substantially similar financial
situations). Although neither the phrase inability to pay nor a specific test for
substantially similar financial situations appears in the statute, the factors under
Sections 503(d) and 504(a) are there to compare the relative financial standings of
the parties. Haken, 394 Ill. App. 3d at 162. The statutory factors are the means by
which a trial court can determine whether a spouse has an inability to pay or
whether the parties financial situations are so similar that a contribution to
attorney fees would be improper. Furthermore, the conclusory phrase inability
to pay was not meant to be interpreted definitively, whereas the plain language
of the statutory factors provides a framework within which to compare the relative
means of parties to pay their attorney fees. See IRMO Schneider, 214 Ill. 2d 152,
174 (2005) (Financial inability exists where requiring payment of fees would
strip that party of her means of support or undermine financial stability.); IRMO
Pond, 379 Ill. App. 3d 982, 987 (2008) (Inability to pay does not require a
showing of destitution ***. *** [T]he court should consider the allocation of
assets and liabilities, maintenance, and the relative earning abilities of the
parties.); IRMO Carr, 221 Ill. App. 3d 609, 612 (1991) ( [I]nability to pay
must be determined relative to the partys standard of living, employment
abilities, allocated capital assets, existing indebtedness, and income available
from investments and maintenance.). [Emphasis added.]
Accordingly, the Sobieski appellate court rejected the husbands argument that it should apply a
comparison of their net incomes in a simple formulaic method in determining whether to award
attorneys fees.
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IRMO Pond, 379 Ill.App.3d 982 (2nd Dist., 2008), will be analyzed at length because
there are very few cases which involve reversals of a failure to make a contribution award. In
fact, the appellate court was able to cite only three previous appellate court cases, each prior to
the Leveling amendments. On the same day that the parties signed the marital settlement
agreement, the trial court entertained the parties' petitions for contribution to attorney fees. The
trial court denied both petitions. The trial court stated:
The issue of contribution is set forth in the attorney's petitions and essentially
request the court to, after looking at the division of property and the relative
financial circumstances of the property [sic] after the division of this property is
made and any other factors, there being no maintenance, that would be the other
major consideration, looking at their incomes and ability to pay, the Court is
going to deny any relief by [petitioner] in this case. The Court finds that, as I say,
at the end of the day, the economic circumstances available to [respondent] would
not, in this Court's judgment, constitute *** an equitable basis for him to make a
contribution towards any attorney's fees that will be paid. So [petitioner's] request
for contribution to attorney's fees is denied.
The appellate court cited Minear in support of the proposition that Inability to pay does not
require a showing of destitution, and the party seeking fees is not required to divest himself of
capital assets before requesting fees. It stated, Rather, a party is unable to pay her fees if the
payment would strip her of her means of support or undermine her financial stability. Schneider,
214 Ill. 2d at 174. In determining whether and in what amount to award attorney fees, the court
should consider the allocation of assets and liabilities, maintenance, and the relative earning
abilities of the parties. IRMO Suriano, 324 Ill. App. 3d 839, 852 (2001). Regarding earnings, the
court may consider both current and prospective income. IRMO Selinger, 351 Ill. App. 3d 611,
622 (2004).
In Pond, the ex-husband had agreed in the settlement agreement (MSA) to pay $5,000 toward
attorneys fees which was apparently due to violations as to discovery issues. The court then
pointed out that the fee award was not one made per 508(b) but per 508(a) incorporating the
contribution provisions by reference. The ex-wife argued that the court could consider a partys
conduct as to the reason for the litigation, citing IRMO Ziemer, 189 Ill. App. 3d 966, 969 (1989).
The ex-wife also argued that her ex-husband should be required to contribute toward the $63,000
balance of fees owed because she had already borrowed $28,000 to pay her attorney, because the
house which was the majority of the estate awarded to her was illiquid and because her exhusband could afford to pay via a contribution award and make payments over time. The exhusband argued in part that he had over $38,000 in credit card debt and he was therefore left with
no money after paying the credit card debt. The ex-husband thus argued that while his ex-wife
had similar debt (excluding attorney fees), she also has the house. He also urged that the ex-wife
had waived the argument that he could make installment payments, because she did not offer
such a proposal in the trial court. The ex-husbands further arguments were:
On the subject of income, respondent points out that petitioner was earning
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$38,422 in 2005 when she quit her job, and he argues that the trial court was
imputing an income to her of $25,000 for college contribution purposes only.
Respondent maintains that we should not ignore that petitioner quit her job in the
middle of the proceedings and then asked for contribution based on a lower
imputed income for college purposes. Respondent further argues that petitioner
received 65% of the assets to balance his higher income. According to respondent,
petitioner already benefitted from the differences in income but now seeks to
double dip.
The appellate court determined that the ex-wife did not waive the issue of seeking payments over
time by now raising it at the trial court level. Because the ex-wife quit her job earning $38,000,
the appellate court stated that it was reasonable to consider that her future income would likely
rise. See Selinger, 351 Ill. App. 3d at 622 (court may consider both current and prospective
income). Regarding the ex-husbands income, the settlement agreement recited that he earned
$93,610 in 2005 and had a projected 2006 income of $83,000 based upon his October year to
date income. The appellate court focused its attention on the cases reversing the trial courts
denial of attorneys fees: IRMO Carpenter, 286 Ill. App. 3d 969 (1997), IRMO Haas, 215 Ill.
App. 3d 959 (1991), and Sullivan v. Sullivan, 68 Ill. App. 3d 242 (1979).
Those cases break down as follows as to the income comparison:
Case
Carpenter
Hass
Sullivan
Amt
Sought
$3,543
$5,647
Wife
Note
Husband
Note
$12,000
$15,000 Less Than
$4,176 Ws Gross
$45,000
$49,000
$14,676
Estimated for H
Excluding Bonus
Net figure for H
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income at Dick Pond Shoes. The courts in Carpenter, Haas, and Sullivan all
emphasized the differences in the parties' incomes in determining that the trial
courts abused their discretion in refusing to order attorney fee contributions.
Though respondent argues that petitioner has already benefitted from the
differences in income by receiving 65% of the marital assets, as stated, in
determining whether and in what amount to award attorney fees, the court should
take into account the allocation of assets and liabilities, maintenance, and the
parties' relative earning abilities. Thus in analyzing this issue, we are cognizant of
petitioner's greater assets. But we also consider that this benefit was diluted by her
waiver of maintenance and her assumption of a much greater share of the
liabilities. We agree with respondent that he should not be responsible for the
entire remaining balance of petitioner's attorney fees. At the same time,
considering the nature of petitioner's assets, her vast debts, and the significant
income disparities, we believe that the trial court abused its discretion by not
ordering respondent to contribute to petitioner's attorney fees in any amount
beyond the $5,000 he already paid.
Accordingly, the appellate court reversed and remanded the case to the trial court to determine
the contribution award.
Nesbitt Standards in Contribution Hearings and Bundled Billing Statements:
IRMO Nesbitt, (First Dist., 2007) involves Schiller, DuCanto and Flecks (SDF) fee contribution
petition seeking $1.109 million in fees ($227,000 being previously paid). After the initial filing,
wifes counsel filed two supplemental fee petitions seeking for a four month period of an
additional $111,784 and for a three month period of $228,779.
One of the factors in this case was that in the SDF billing statements there is a listing of tasks
during a day and a listing of the total time per day but not a breakdown per task. The SDF policy
is that the employee may aggregate the time for all of the work on a given day. It was noted that
while some associates itemize their time that this is eliminated when billing records are sent to
the client.
The appellate decision addressed the reasons for the very high attorneys fees. David Hopkins of
SDF conceded that the charges for litigation were overwhelmingly high when compared to
[Lisas] share of the marital estate but explained the unique circumstances and complexities of
the case. A lawyer for the first law firm representing the husband testified that the husband was
very angry at Lisa because he had been thrown out of his house. The husband terminated his
relationship with his firm because they were not aggressive enough in representing Mr.
Nesbitt. That firm filed an action to recover their fees and the husband filed a lawsuit against
the lawyer individually and against his firm. The ex-husband conceded that in a settlement
proposal generated in 2001, he wrote, If Lisa chooses not to come to a reasonable agreement as
set forth below, we can simply go to court and have a full, blown out litigation slash war. In
previous years the husbands gross income had been over $1M but in 2004 it was approximately
$400,000. The husband had an interest in three businesses and received a yearly salary. The
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trial court ultimately ordered Bruce to contribute $700,000 to Lisas attorney fees because
Bruce holds a financial position far superior to [Lisas] and is well able to help defray her fees,
and because the Court believes that Bruce protracted the litigation out of sheer vindictiveness.
There were appeals and cross-appeals and the appellate court generally affirmed the trial courts
decision.
The critical discussion on appeal addressed the bundled services of SDF and stated:
Though not explicitly required by section 503(j), we have found that contribution
awards under that section must be reasonable. Hasabnis, 322 Ill. App. 3d at 596
(Section 503(j) does not expressly require the award of fees be reasonable, but
since we cannot envision a grant of legislative authority that tells judges to be
unreasonable, we read the statute as incorporating a reasonability requirement).
Bruce, relying primarily on our holding in Hasabnis, argues on appeal that the
trial courts findingthat it is impossible to tell with precision whether all the
work performed was reasonableshould have resulted in a denial of all of the fees
requested in [Lisas] contribution petition, because such a finding is necessary to
award contribution under section 503(j) of the Act. We disagree.
The appellate court stated that based upon Hasabnis did not require the necessity of fees but did
require the fees to be reasonable. The court cited this case for the proposition that, While a trial
court may review the petitioning partys billing records, it is not required to do so. But the court
recognized that DeLarco, 313 Ill. App. 3d 107 (2000), had held that the trial court must, in
making an award of fees pursuant to a contribution petition, consider whether the attorney fees
charged by the petitioning partys attorney are reasonable.
Fee Equalization and Unless Otherwise Ordered of the Interim Fee Statute:
Holthaus has addressed most directly the unless otherwise ordered language of 501(c-1)(2) of
IMDMA that is discussed above when addressing the DeLarco holdings. Despite the potential
waiver issue not being argued at the trial court level, the Holthaus appellate court stated, We
choose to address Angeline's contention because it is necessary to the development of a sound
body of precedent concerning the application of section 501(c-1)(2) of the Act. Thus, this case
presents an instance of what might be called judicial activism. The appellate court in Holthaus
stated:
The plain language of section 501(c--1)(2) makes apparent that the trial court is
required to treat the parties' attorney fees as advances, "[u]nless otherwise
ordered." (Emphasis added.) 750 ILCS 5/501(c--1)(2) (West 2006); see also In re
Marriage of Beyer, 324 Ill. App. 3d 305, 314 (2001) (noting that section 501(c-1)(2) creates a presumption that attorney fees will be treated as advances, but that
the presumption does not apply where the court orders otherwise).
Here, the trial court ordered otherwise when following trial it ordered that, subject
to the division of the marital estate, which was skewed so as to compensate
Nicholas for attorney fees incurred as a result of Angeline's behavior during the
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necessity of fees the conflict of interest problem posted by prior law would have persisted.
Hopkins had urged that contribution awards should be determined in a manner akin to other
types of debts in the divorcing couple's marital estate. I disagree in light of the language in
Section 508 of the IMDMA. The first sentence of 508 states, The court *** and after
considering the financial resources of the parties, may order any party to pay a reasonable
amount for his own or the other party's costs and attorney's fees.
In any event, while Hasabnis tried to make a distinction in stating that necessity is not an
element of the contribution statute but that fees still must be reasonable. The specific quote as to
reasonableness states: Section 503(j) does not expressly require the award of fees be reasonable,
but since we cannot envision a grant of legislative authority that tells judges to be unreasonable,
we read the statute as incorporating a reasonability requirement. While the appellate court gave
lip service to reasonableness being a factor, it then went on to appear to reject this assumption.
Picking up from the argument made in the Hopkins' Illinois Bar Journal article the court stated,
A critical examination of the reasonableness of the petitioner's attorneys' fees would not
be consistent with the obvious goals of section 503(j) -- to avoid conflicts of interest between
petitioner and her attorney and to preserve the lawyer-client privilege. Again, I disagree.
As pointed out in DeLarco, a finding of reasonableness or unreasonableness in a contribution
hearing may not be asserted against the attorney in a hearing for attorney's fees against either a
client or former client.
It is urged that the First District appellate court decision is poorly reasoned and the Second
District's DeLarco decision was better reasoned. It does not make sense to exact the supposed
conflict of interest between lawyer and his or her client when he is pursuing a fee contribution
petition as against the depth of Illinois law which requires fees to be reasonable. It is urged that
the court is not in a position to properly determine whether fees are reasonable unless detailed
billing records are submitted.
Gattone A Second 2nd District Case Holding Fees Must be Reasonable: We have
one more case which conflicts with the First District's approach in rejecting reasonableness as a
mandatory consideration in contribution petitions: IRMO Gattone, 317 Ill.App.3d 346 (2d Dist.
2000). Consistent with DeLarco, the Second District Gattone court held that if the court makes a
contribution award, it should make a determination that the fees requested are reasonable.
Pond Second District Case Comprehensively Addressing Ability to Pay and
Allocation Factors: IRMO Pond, (2nd Dist., 2008) the same day that the parties signed the
marital settlement agreement, the trial court heard the parties' cross-petitions for contribution to
attorney fees. The trial court denied both petitions. The trial court stated:
"The issue of contribution is set forth in the attorney's petitions and essentially
request the court to, after looking at the division of property and the relative
financial circumstances of the property [sic] after the division of this property is
made and any other factors, there being no maintenance, that would be the other
major consideration, looking at their incomes and ability to pay, the Court is
going to deny any relief by [petitioner] in this case. The Court finds that, as I say,
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at the end of the day, the economic circumstances available to [respondent] would
not, in this Court's judgment, constitute *** an equitable basis for him to make a
contribution towards any attorney's fees that will be paid. So [petitioner's] request
for contribution to attorney's fees is denied.
The appellate court cited Minear in support of the proposition that Inability to
pay does not require a showing of destitution, and the party seeking fees is not
required to divest himself of capital assets before requesting fees. It stated,
Rather, a party is unable to pay her fees if the payment would strip her of her
means of support or undermine her financial stability. Schneider, 214 Ill. 2d at
174. In determining whether and in what amount to award attorney fees, the court
should consider the allocation of assets and liabilities, maintenance, and the
relative earning abilities of the parties. IRMO Suriano, 324 Ill. App. 3d 839, 852
(2001). Regarding earnings, the court may consider both current and prospective
income. IRMO Selinger, 351 Ill. App. 3d 611, 622 (2004).
I analyze Pond at length because there are very few cases with actual reversals of a failure to
make a contribution award. In fact, the appellate court was able to cite only three previous
appellate court cases, each prior to the Leveling amendments.
In this case the ex-husband had agreed in the MSA to pay $5,000 toward attorneys fees which
was apparently due to violations as to discovery issues. The court then pointed out that the fee
award was not one made per 508(b) but per 508(a) incorporating the contribution provisions
by reference. The ex-wife argued that the court could consider a partys conduct as to the reason
for the litigation, citing IRMO Ziemer, 189 Ill. App. 3d 966, 969 (1989). The ex-wife also
argued that her ex-husband should be required to contribute toward the $63,000 balance of fees
owed because she had already borrowed $28,000 to pay her attorney, because the house which
was the majority of the estate awarded to her was illiquid and because her ex-husband could
afford to pay via a contribution award payments over time. The ex-husband argued in part that
he had over $38,000 in credit card debt and he was therefore left with no money after paying the
credit card debt. The ex-husband thus argued that while his ex-wife had similar debt (excluding
attorney fees), she also has the house. He also urged that the ex-wife had waived the argument
that he could make installment payments, because she did not offer such a proposal in the trial
court. The ex-husbands further arguments were:
On the subject of income, respondent points out that petitioner was earning
$38,422 in 2005 when she quit her job, and he argues that the trial court was
imputing an income to her of $25,000 for college contribution purposes only.
Respondent maintains that we should not ignore that petitioner quit her job in the
middle of the proceedings and then asked for contribution based on a lower
imputed income for college purposes. Respondent further argues that petitioner
received 65% of the assets to balance his higher income. According to respondent,
petitioner already benefitted from the differences in income but now seeks to
double dip.
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The appellate court determined that the ex-wife did not waive the issue of seeking payments over
time by now raising it at the trial court level. Because the ex-wife quit her job earning $38,000,
the appellate court stated that it was reasonable to consider that her future income would likely
rise. See Selinger, 351 Ill. App. 3d at 622 (court may consider both current and prospective
income). Regarding the ex-husbands income, the settlement agreement recited that he earned
$93,610 in 2005 and had a projected 2006 income of $83,000 based upon his October year to
date income. The appellate court focused its attention on the cases reversing the trial courts
denial of attorneys fees. IRMO Carpenter, 286 Ill. App. 3d 969 (1997), IRMO Haas, 215 Ill.
App. 3d 959 (1991), and Sullivan v. Sullivan, 68 Ill. App. 3d 242 (1979).
Those cases break down as follows as to the income comparison:
Case
Carpenter
Hass
Sullivan
Amt
Sought
$3,543
$5,647
Wife
Note
Husband
Note
$12,000
$15,000 Less Than
$4,176 Ws Gross
$45,000
$49,000
$14,676
Estimated for H
Excluding Bonus
Net figure for H
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Both respondent and [the law firm] are represented by the same attorney on
appeal even though their interests potentially conflict. For example, it was in [the
law firms] interest to obtain a ruling that the trial court abused its discretion in
awarding just $10,000 in attorney fees and that $73,490.82 was a reasonable
amount of fees. However, such a ruling could have been adverse to respondent, as
we might still have held that the trial court did not err in apportioning 40% of the
fees to respondent. Respondent would then be liable to [that law firm] for
$29,396.28, rather than just the $4,000 she owed under the trial court's decision.
As such, it was contrary to respondent's interest to challenge the trial court's
ruling that $10,000 was a reasonable amount of attorney fees. The court then
instructed, "In this case, there is no indication that appellants' attorney did not
make the necessary disclosures and obtain appellants' consent. We point out the
conflict of interest only to remind practitioners of the potential perils involved
with joint representation.
It is suggested that the appellate court in Beeler went beyond the issues which were specifically
in dispute because of its apparent displeasure that a post-decree dispute involving such relatively
minor matters totaled more than $70,000. The appellate court seemed to limit fees that could be
sought from the firms own client to the remaining $4,000 instead, of the remaining $64,000+
owed to them by the terms of their contract. A fee petition against a lawyer's own client is not
limited to the fees which are customary in the community. The standards for a fee petition under
508(c) differ from a contribution petition where fees are more limited. This decision was at
first published and it was changed to a Rule 23 order.
Timing for Filing Contribution Petition or Petition for Fees under 508(a): Case law is
conflicting as to the timing issues for filing a contribution petition. Section 508(a) in pertinent
part now states (with the redlining showing the 2009 amendments):
The court from time to time, after due notice and hearing, and after considering
the financial resources of the parties, may order any party to pay a reasonable
amount for his own or the other party's costs and attorney's fees. *** At the
conclusion of any prejudgment dissolution proceeding under this subsectionthe
case, contribution to attorney's fees and costs may be awarded from the opposing
party in accordance with subsection (j) of Section 503 and in any other
proceeding under this subsection.
So, keep in mind that 503(j) no longer applies to post-decree petitions. It is only incorporated by
reference when addressing pre-decree situations with the specific reference being
prejudgment dissolution proceedings. The pertinent parts of 503(j) of the IMDMA that apply
to pre-judgment dissolution proceedings (and not to pre-judgment parenting cases under the
maxim of construction that the inclusion of one means the exclusion of the other) are:
Time for Hearing After Close of Proofs and Before Judgment is Entered:
After proofs have closed in the final hearing on all other issues between the
parties *** and before judgment is entered, a party's petition for contribution to
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fees and costs incurred in the proceeding shall be heard and decided, in
accordance with the following provisions:
Time for Filing Not Later than 30 Days After Close of Proofs / Order
Such Other Period as Court Orders: (1) A petition for contribution, if not filed
before the final hearing on other issues between the parties, shall be filed no later
than 30 days after the closing of proofs in the final hearing or within such
other period as the court orders.
IRMO Konchar Must be Heard and Decided before Entry of Final Judgment:
The first case to address the timing issue was IRMO Konchar, 312 Ill.App.3d 441 (2d Dist.
2000). Konchar held that a 503(j) contribution petition must be heard and decided before a final
judgment is entered. When proofs are closed and a final order/judgment is entered on the
same day, a petition filed thereafter is not timely filed and should be dismissed.
In Konchar, within 30 days of the close of proofs and entry of final judgment, the father filed a
petition for fees, claiming that he could not pay his own fees because he was unemployed and
disabled. The trial judge, Margaret Mullen, denied the petition for attorney's fees because the
petition was not heard and decided before the date the final judgment/order was entered. The
father appealed. The Second District appellate court affirmed the trial court. The appellate court
concluded that reading 508(a) and 503(j) together, the conclusion is that a petition for
contribution fees must be heard and decided before the final judgment is entered. The opinion
stated:
Here, section 508(a) of the Act provides that attorney fees may be awarded at the
conclusion of a case. The fees may be awarded in accordance with section 503(j)
of the Act. Section 503(j) of the Act provides that a petition for fees must be
heard and decided after the close of proofs in the final hearing and before
judgment is entered. However, that language is qualified by section 503(j)(1) of
the Act, which provides that if a petition for fees is not filed before the final
hearing, then the petition must be filed no later than 30 days after the closing of
proofs in the final hearing.
***
We conclude that, under section 503(j) of the Act, a petition for attorney fees
must be heard and decided before the final judgment is entered. We determine
that the phrase "before judgment is entered" that is presented in section 503(j)
limits subsection (1) of section 503(j) of the Act so that the 30-day extension
only applies to situations where a final judgment has not been entered.
Macaluso Case Contrary to Konchar Holding In Post-Divorce Proceedings No
Bar Until 30 Days after Entry of Judgment: For a while, the law seemed clear that a fee
petition, even in post-judgment proceedings, must be filed before the final judgment is entered.
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However, the Macaluso v. Macaluso, 334 Ill.App.3d 1043 (3rd Dist. 2002), GDR 02-55,
decision, disagreed with Konchar (as discussed above in the Illinois Supreme Court Blum
decision) and held that a petition for contribution fees in post-judgment proceedings need not be
filed before final judgment is entered, and the a petition may be filed at any time before the trial
court loses jurisdiction generally following the 30 day rule. Macaluso reasoned that the
timing requirements of the contribution statute do not apply to post-divorce matters because
503(j)'s references to "the final hearing on all other issues between the parties, is specific to
the bifurcated hearing required in pre-decree proceedings. I believe the Macaluso decision may
be the better reasoned decision. Nevertheless, we have a clear conflict among the districts due to
the fact that the legislation never really was drafted with post-divorce proceedings in mind.
Blum Timing Requirements Apply to Pre-Decree Cases / Not Post-Decree Cases:
A 2009 Illinois Supreme Court case addresses the timing of a contribution petition in post-decree
cases but unfortunately did not involve the 2009 amendments, IRMO Blum, 235 Ill. 2d 21 (Ill.
2009). In Blum, the trial court dismissed the ex-wifes contribution petition as untimely filed
under the rule of Konchar. The issue was whether the trial court erred in dismissing the exwife's petition for contribution of attorney fees as untimely. The Supreme Court stated:
We agree with the analysis of the court in Macaluso and the appellate court in this
case. Section 508 governs attorney fees generally, including petitions for
contribution of attorney fees and costs incurred in postdecree proceedings and
initial dissolution proceedings. We also agree with Macalusos conclusion that
section 503(j) governs the procedural requirements applicable to petitions for
contribution of attorney fees and costs incurred prior to the entry of final orders
for dissolution of marriage. The phrase all other issues, in section 503(j) refers
to bifurcated contested trials, when the grounds are tried first and other
remaining issues are either settled or tried separately. See 750 ILCS 5/403(e)
(providing for bifurcated contested trials on issues of grounds and other
remaining issues). Further, in the section 503 context, attorney fees are awarded
in view of the total disposition of property and assets, thus justifying the 30-day
requirement for filing a petition for contribution of attorney fees. Practically, a
judge rarely decides other remaining issues immediately after a contested trial
on the remaining issues. The petition for fees must, however, be presented to the
judge after close of the evidence, and then attorney fees are decided as part of the
overall property and asset distribution.
Thus, the Supreme Court held that the trial court erroneously dismissed the ex-wife's petition for
contribution of attorney fees as untimely.
Case Law Regarding Waiver of Right to Object to Timing re Contribution Petition or Fee
Hearing Against Client -- Lindsey-Robinson and Baniak:
Lindsey-Robinson Participation in Contribution Hearing and No Objection:
Muddying the waters even more as to the timing issue is the IRMO Lindsey-Robinson, 331
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Ill.App.3d 261 (1st Dist., 1st Div. 2002) GDR 02-54, decision. This case stands for the
proposition that there may be a waiver of the right to object to the timing of the contribution
action. In this case, the appellate court ruled that the timing requirement may be waived by lack
of objection and, at the hearing, by arguing to the merits of the fee petition.
Baniak -- Time Frame Requirements under the IMDMA are Not Necessary for
Subject Matter Jurisdiction and Filing of Late Fee Petition Acceptable Where Waiver: A
recent case with similarity to Lindsey-Robinson except this time in the context of a petition for
fees against a lawyers own client the 2011 IRMO Baniak case, 2011 IL App (1st) 092017
(August 9, 2011). The judgment for divorce, incorporating the MSA, was entered October 31,
2008. Attorney Dean Dussias filed his petition for setting final attorney fees on December 1,
2008, a period of 31 days after the trial court entered the divorce judgment. On December 29,
2008, the trial court granted Dussias leave to withdraw as counsel for the former wife. On July
10, 2009, the trial court awarded $71,347 of attorney fees to Dussias. The former wife appealed
and the appellate court affirmed.
Attorney Dussias former client claimed, among other things, that Dean's fee petition was not
timely filed and that he did not first seek leave to withdraw as required by the statute.
The appellate court first quoted from Section 508(c)(5) of the IMDMA: A [fee] petition ***
shall be filed no later than the end of the period in which it is permissible to file a motion
pursuant to Section 2-1203 of the Code of Civil Procedure. And that Section of the Code of
Civil Procedure provides, In all cases tried without a jury, any party may, within 30 days after
the entry of the judgment ***, file a motion *** for other relief. 735 ILCS 5/2-1203(a).
The appellate court noted the above section of the Code of Civil Procedure. Then the appellate
court stated:
However, 1964 amendments to the judicial article of the 1870 constitution
radically changed the legislatures role in determining the jurisdiction of the
circuit court. Thus, the legislatures power to define the circuit courts
jurisdiction was expressly limited to the area of administrative review. Id. The
current constitution, adopted in 1970, retains this limitation.
But after discussing this, the appellate court stated:
Furthermore, Kristina has waived the issue of the failure of Dussias to comply
with the time restrictions imposed by the legislature in section 508 by failing to
object to Dussias fee petition and participating in court-ordered dispute
mediation and a subsequent hearing on the petition without an objection. In re
Marriage of Lindsey-Robinson, 331 Ill. App. 3d 261, 265 (2002).
The Lindsey-Robinson was a case handled successfully by the Gitlin & Gitlin firm. Citing
Lindsey-Robinson, the appellate court found there to be a waiver, By proceeding without
objection, the appellant waived any violation of the timing requirements of section 508(c)
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regarding the filing of the fee petition. Lindsey-Robinson, 331 Ill. App. 3d 261.
Fees for Prosecuting Appeals: Substantially Prevailed for Fees for Appeals
Obtaining 50% of Relief Sought Murphy: When discussing the 2002 Murphy, decision I
had stated:
Another example of the poorly thought out nature of some of the amendments
was the amendment to Section 508(a)(3.1) which provides that a party may obtain
attorney's fees for the prosecution of an appeal if that party has substantially
prevailed. IRMO Murphy, 327 Ill.App.3d 845 (4th Dist. 2002), addressed the
issue of what was meant by the term substantially. It ruled that for fees to be
awarded under 508(a)(3.1), the party prosecuting appeal must obtain at least
50% of the relief sought.: The opinion states that to substantially prevail means to
prevail largely but not wholly, taken from one dictionary definition. The
analysis in Murphy measures relief sought versus relief obtained. It states that
determination was not based on the fact that appellant prevailed on only one of
four contentions raised but next commented that substantially prevails suggests
one must obtain at least 50% of relief sought. It relied on federal law regarding
the term prevailed as to fee awards in which only a partial victory was required.
Murphy states that the term substantially must have been intended to prevent
the application of the lower threshold.
Justice Cook dissented and properly suggested that the goal of Leveling Statute was to
resolve conflict in case law as to whether fees could be awarded for successful appeal.
Cook stated that it is not sufficient that a party prevails nominally or technically. There
must be a victory in substance a real victory. The dissent quotes the primary definition
of real from Websters as not imaginary or illusory, real, true, and stated that the
requirement of an overwhelming victory runs counter to the 1997 amendments:
If a party has a legitimate basis for appeal we should not attempt to
discourage that party from raising other issues as well, even though the
party thereby risks obtaining less than 50% of the relief sought. The
appellate court should attempt to provide guidance on troublesome issues,
not penalize parties for raising issues other than sure winners.
Note that the Illinois Supreme Court has accepted cert. I expect a reversal from the
Illinois Supreme Court.
In fact, the Illinois Supreme Court did reverse the decision of the appellate court. In IRMO
Murphy, (2003), the Court required fees to be awarded for appellate proceedings on a claim-byclaim basis, that is, if on an individual claim the petitioner substantially prevailed on the merits.
The Murphy Supreme Court ruled, "' We believe that the appropriate reading of this section is
that, in the context of a petition for fees for prosecution of an appeal, the circuit court may only
award fees incurred for those individual claims on which the appellant can be said to have
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The issue not clarified by the above is who has the burden of proof per 508(b) once a party is
shown not to have complied with a court order. There are several cases all holding that the
burden of proof is on the party who does not comply with a court order. McGuire, 305 Ill.App.3d
474 (5th Dist. 1999), was one of the few Illinois post-Leveling appellate court decision
addressing this issue.
McGuire further stated:
Under section 508(b), if a party to a dissolution does not fulfill a condition
imposed upon him or her by an order, the burden is on that party to produce
evidence of cause or justification. See In re Marriage of Baggett, 281 Ill. App.
3d 34 (1996); 750 ILCS 5/508(b) (West 1994). According to section 508(b), as
amended, the noncompliant party is required to demonstrate compelling
cause or justification. 750 ILCS 508(b) (West 1996).
The opinion noted that in that case the husband offered evidence as to his cause or justification
for his non-compliance and did not reverse the trial court's discretion in ruling that the husband
had met his burden of proof.
Similarly, Baggett (cited by McGuire) stated:
When an order has not been complied with, the court need not find the respondent
in contempt, but it should then determine whether any failure to pay was "without
cause or justification" for purposes of mandatory attorney fees under section 508
of the Act. In re Marriage of Roach, 245 Ill.App.3d 742, 748 (1993).
Baggett pointed out that in contempt proceedings a prima facia case of contempt is established
merely by establishing the non-compliance. The burden of establishing a defense of course shifts
to the alleged contemnor. The Baggett court applies the same evidentiary rule to the "without
cause or justification" issue in an application for attorney's fees for enforcement. Baggett stated:
In this case, the record is devoid of any evidence of [the ex-husband's] cause or
justification for not complying with the order. Therefore, we hold that the court
erred in not granting Rebecca attorney fees, and we remand for the court to
determine a fair and reasonable amount of attorney fees.
Another case consistent with Baggett and Roach is IRMO Young, 200 Ill.App.3d 226 (4th Dist.
1990). Based upon this line of cases, it appears clear that the word compelling was likely
added to the statute to indicate that once non-compliance is shown, the burden of proof to avoid
payment of attorney's fees is that the non-complying party must show his or her compelling
cause or justification for non-compliance. At least in this regard the amendment to 508(b) did
not have the opposite intended effect. It probably does lend some additional clarity to this aspect
of the fee statute.
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503 and, if maintenance has been awarded, on the criteria for an award of
maintenance under section 504 (750 ILCS 5/503(j)(2) (West 2010)).
The appellate court then reviewed the parties very different financial circumstances including the
former husband's pensions and pension payments, his current wife's income from employment and
the limited cash flow of the former wife. The appellate court then concluded:
The trial court acknowledged the obvious great disparity between Sue's and Terry's
actual earnings and their earning capacities. Sue depends solely on social security
disability benefits and maintenance payments, and her earning capacity is virtually
eliminated due to her disability. A thorough review of the record makes clear that
Sue has proven she lacks the ability to pay, and conversely, Terry is more than able.
Sue is not required to show destitution in order for the trial court to award her
attorney fees. See Gable, 205 Ill. App. 3d at 700. The trial court, nonetheless,
ordered Terry to pay only half of Sue's fees, predominately on the basis that her claim
for increased maintenance was "nonmeritorious." To the contrary, it was imperative
for Sue's counsel to pursue information regarding Terry's finances in order to have
both a meaningful review of the maintenance award and the petition for attorney fees.
The trial court abused its discretion in ruling on Sue's request for attorney fees.
Ancillary Litigation: The amendment to the legislation added the word compelling was a
positive amendment to the statute. A piece of the legislation which actually gave clarity to the
existing body of law was the addition to 508 to allow fees for ancillary litigation. There had
already been a body of case law providing that fees could be awarded for ancillary litigation, i.e.,
litigation reasonably related to the underlying proceeding.
Letsinger -- Fees Re Removal of Lien from Former Marital Residence: In IRMO
Letsinger, 748 N.E.2d 812 (2nd Dist. 2001), the appellate court ruled that the former wife was
entitled to award of fees, in post-judgment proceedings, in which she sought to have lien of
judgment against husband removed from real estate she owned (former marital residence).
A Warning to Lawyers -- Voluntary Dismissal -- Improper to Pursue Fee Claim Against
Your Client Following Dismissal: A final line of cases which is significant is the case law
addressing voluntary dismissal and its effect on fee awards. IRMO Lucht, 299 Ill.App.3d 541 (1st
Dist. 1998) held that a lawyer may not file a petition for attorney's fees after a case has been
voluntarily dismissed even though the petition may be filed within thirty days of the entry of the
judgment for dismissal. It would seem, then, the only recourse would be to file an independent
action, i.e., a contract cause of action.
An Outline of the
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award and judgment at any time subsequent to 90 days after the entry of an order granting
counsel leave to withdraw; and
(2) After the close of the period during which a petition (or praecipe) may be filed under
subdivision (c)(5), if no such petition (or praecipe) for the counsel remains pending, any counsel
or former counsel may pursue such an award and judgment in an independent proceeding.
In an independent proceeding, the prior applicability of this Section shall in no way be deemed to
have diminished any other right of any counsel (or former counsel) to pursue an award and
judgment for legal fees and costs on the basis of remedies that may otherwise exist under
applicable law; and the limitations period for breach of contract shall apply*.. In an independent
proceeding under subdivision (e)(1) in which the former counsel had represented a former client
in a dissolution case is still pendings,*the former client may bring in his or her spouse as a thirdparty defendant, provided on or before the final date for filing a petition (or praecipe) under
subsection (c), the party files an appropriate third-party complaint under Section 2-406 of the
Code of Civil Procedure. In any such case, any judgment later obtained by the former counsel
shall be against both spouses or ex-spouses, jointly and severally (except that, if a hearing under
subsection (j) of Section 503 has already been concluded and the court hearing the contribution
issue has imposed a percentage allocation between the parties as to fees and costs otherwise
being adjudicated in the independent proceeding, the allocation shall be applied without
deviation by the court in the independent proceeding and a separate judgment shall be entered
against each spouse for the appropriate amount). After the period for the commencement of a
proceeding under subsection (c), the provisions of this Section (other than the standard set forth
in subdivision (c)(3) and the terms respecting consent security arrangements in subsection (d) of
this Section 508) shall be inapplicable. The changes made by this amendatory Act of the 94th
General Assembly are declarative of existing law.* [PA 94-106 effective 7/7/06]
501(c-1) [Interim Attorneys Fees ]: As used in this subsection (c-1), "interim attorney's fees
and costs" means attorney's fees and costs assessed from time to time while a case is pending, in
favor of the petitioning party's current counsel, for reasonable fees and costs either already
incurred or to be incurred, and "interim award" means an award of interim attorney's fees and
costs. Interim awards shall be governed by the following:
(1) Except for good cause shown, a proceeding for (or relating to) interim attorney's fees
and costs in a pre-judgment dissolution proceeding shall be nonevidentiary and summary in
nature. All hearings for or relating to interim attorney's fees and costs under this subsection shall
be scheduled expeditiously by the court.
(4) The changes to this Section 501 made by this amendatory Act of 1996 apply to cases
pending on or after June 1, 1997, except as otherwise provided in Section 508.
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proceeding for disposition of property following dissolution of marriage by a court which lacked
personal jurisdiction over the absent spouse or lacked jurisdiction to dispose of the property, the
court shall assign each spouse's non-marital property to that spouse. It also shall divide the
marital property without regard to marital misconduct in just proportions considering all relevant
factors, including:
(1) the contribution of each party to the acquisition, preservation, or increase or decrease
in value of the marital or non-marital property, including (i) any such decrease attributable to a
payment deemed to have been an advance from the parties' marital estate under subsection (c1)(2) of Section 501 and (ii) the contribution of a spouse as a homemaker or to the family unit.
***
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The Gitlin Law Firm, P.C.
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Woodstock, IL 60098
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Last Updated: February 3, 2014
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