Name of Assigned Judge Sitting Judge if Other or Magistrate Judge Amy J. St. Eve than Assigned Judge
The Court denies Stanley LLC's Motion to Quash the Citation to Discover Assets . The citation accordingly remains pending.
O[ For further details see text below.] Notices mailed by Judicial staff.
Before the Court is citation respondent Stanley, LLC's ("Stanley") Motion to Quash Citation to Discover Assets. For the following reasons, the Court denies Stanley's motion.
On June 2, 2010, the Court granted Defendant/Counter-Plaintiff Kevin Shields' ("Shields") motion for summary judgment against Plaintiff/Counter-Defendant Bret A. Broaddus ("Broaddus") as to Broaddus' breach of fiduciary duty claim. On September 1, 2010, the Court granted Shields' motion for summary judgment against Broaddus, which included a counterclaim for Shields' attorney's fees. Based on the fee-shifting provisions in the parties' agreements, the Court awarded Shields, as the prevailing party, $798,619.16 in attorney's fees on November 12, 2010. On December 16, 2010, the Court entered a final judgment in favor of Shields and against Broaddus in the amount of $798,619.16, plus post judgment interest pursuant to 28 U.S.C. § 1961.*fn1 The Seventh Circuit affirmed the Court's summary judgment order and fee award on December 21, 2011. See Broaddus v. Shields, 665 F.3d 846 (7th Cir. 2011). Shields and his counsel have tried, unsuccessfully, to secure satisfaction of the judgment against Broaddus through serving citations to discover assets on various persons and entities. Broaddus has refused to pay the judgment entered against him.
On February 9, 2011, the Clerk of the Court issued, and Shields served, a Citation to Discover Assets on Broaddus ("Broaddus Citation") via certified mail. (R. 266.) Broaddus has not answered the Citation, nor has he appeared in Court to respond to it. On October 4, 2011, the Clerk of the Court issued, and Shields served, a Citation to Discover Assets on Stanley through its Registered Agent, Carlos Arazoza ("Stanley Citation"). (R. 307.) Stanley is a Florida limited liability company, whose sole members are Broaddus, as trustee of self-settled revocable trust, and his daughter, Rachel Broaddus. Broaddus, through his trust, owns 99% of Stanley, and Rachel Broaddus owns 1%. Stanley was formed on December 8, 2010, almost one month after the Court issued its order awarding attorney's fees to Shields and mere days before the Court entered final judgment in Shields' favor. Stanley has not answered the Citation, nor has it appeared in Court to respond to it.
On November 15, 2011, Shields filed a motion for turnover of assets held by, among others, citation respondents Wintrust Wealth Management Company ("Wintrust") and Lake Forest Bank ("Lake Forest"), some of which are held in accounts titled in Stanley's name. Shields, Wintrust, and Lake Forest submitted documentation to the Court demonstrating that Broaddus had transferred his assets to Stanley after the Court entered final judgment against him. Broaddus responded to the motion for turnover on December 2, 2011.*fn2 On January 5, 2012, the Court issued a Memorandum Opinion and Order (the "January 5 Order") requiring, among other things, (1) Lake Forest to turn over $11,745.47 from Stanley's checking account number *****587 to Shields by January 31, 2012; and (2) Wintrust to turn over $147,318.00 from the Wintrust Investment Account (number ***1110) by January 31, 2012.
On January 31, 2012, the date by which the turnover was to have taken place, Stanley appeared in this action for the first time and filed a "Motion to Stay and Vacate Void Order and Judgment" and a Motion to Quash Citation to Discover Assets. The Court will address the Motion to Stay and Vacate in a separate order. ...