Chicago team secures victory for estate client
Chicago Partners Hal Morris and Colleen Chinlund, along with Chicago Associate Katelyn Letizia, secured an important and significant victory for an estate client. In the case, a large national insurer sought the recovery of more than $750,000 in interest on a note entered into by a former, and now deceased, officer of the insurance company. The officer had borrowed monies from his insurer-employer to purchase a significant amount of stock in the company. After his death, the insurer brought a claim against the estate for $1.5 million which represented the principal amount of the loan. The probate court thereafter entered judgment on that claim. Then, more than ten months later, the insurer brought a new claim for accrued interest in an amount in excess of $750,000 claiming it could not be calculated at the time of the original claim. Although interest was, in fact, due under the note, we were successful in convincing the probate court that the failure to recover the interest at the time of the entry of judgment, or at least account for a later recovery, barred the subsequent claim. The probate court agreed with our position and denied the claim in its entirety.