A legal battle over the control and proceeds of a mineral estate in Crawford County, Illinois, has taken a significant turn. On January 16, 2024, Patrick J. O'Malley Jr., as Trustee Under Trust Agreement Dated January 1, 2006 (the O'Malley Trust), filed an appeal against Marcia P. Adams and Lawrence P. Luby following a contentious decision by the Circuit Court of Crawford County.
The dispute dates back to March 18, 2016, when the O'Malley Trust initiated a complaint for adverse possession against Marcia P. Adams, individually and as successor trustee of the Almyra M. Prather Revocable Trust Agreement dated December 15, 1967, and Lawrence P. Luby, executor of the estate of Betty P. Luby (collectively known as the Prather Trust). The core issue revolves around farmland in Crawford County where both trusts held a 50% interest in the underlying mineral estate. The O'Malley Trust claimed it had acquired the Prather Trust's interest through adverse possession.
The Prather Trust countered with allegations that since 2008, the O'Malley Trust had been unlawfully extracting and selling oil and natural gas from their shared mineral estate without consent. They also accused Chicago Title Insurance Company of conspiring to slander title by issuing a false title policy declaring that the O'Malley Trust had full ownership of the minerals. Seeking an accounting and damages for these actions, they argued that funds from recent land sales should be held to satisfy potential judgments.
In April 2022, during ongoing litigation, the O'Malley Trust sold surface rights of the disputed farmland to Jenna Bree LLC for $2.685 million but kept details confidential. This prompted further legal action from the Prather Trust on May 19, 2022, arguing that these proceeds should be sequestered due to potential fraudulent transfer under Illinois law.
Subsequent court orders required sequestering sale proceeds and restricting access to funds within related accounts until litigation resolved or further court order was issued. These orders were challenged by O'Malley's counsel who argued they constituted improper prejudgment attachments and violated statutory exemptions protecting retirement funds.
On December 21, 2023, Judge Sonja Ligon denied motions to dissolve these injunctions leading to this appeal where higher courts are now tasked with evaluating whether procedural safeguards were appropriately applied when granting such injunctive relief without necessary evidentiary hearings or findings supporting claims made under fraudulent transfer statutes.
Representing appellant Patrick J. O’Malley Jr., attorneys Robert D. Carroll and Richard A. Saldinger argue for reversal citing abuse of discretion while appellees Marcia P Adams & Lawrence P Luby are represented by A Courtney Cox & Benjamin R Wesselschmidt defending lower court’s rulings seeking preservation status quo pending trial outcomes expected later this year under Case ID: No:16-CH-9 presided over initially before appellate review now underway determining final adjudication merits involving complex trust asset management disputes spanning nearly decade-long litigation history impacting significant financial interests parties involved therein.