Find Legal Information

No. 2--03--0065

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

JUSTICE BYRNE delivered the opinion of the court:

Defendants, the Illinois Department of Public Aid (Department) and its Director, BarryMaram, appeal from an adverse judgment of the circuit court of Winnebago County in a proceedingunder the Administrative Review Law (735 ILCS 5/3--101 et seq. (West 2000)). The Departmenthad placed a lien on a certain investment account in order to collect past-due child support fromDerrick Highsmith, who is the adult son of plaintiff, Fredrick Highsmith. Plaintiff filed a request withthe Department for a hearing to establish that the funds in the account belonged to him and not toDerrick. Following the hearing, the Department found that Fredrick had failed to establish his interestin the account and that the Department could enforce its lien on the account for the full amount owedby Derrick. On administrative review, the trial court found that the decision was against the manifestweight of the evidence and reversed the Department's decision. We affirm the trial court's order.

The underlying administrative hearing occurred in February 2002. Plaintiff offered threeexhibits into evidence: (1) a statement from First Union Securities for an account entitled "InvestmentAccount for Derrick L. Highsmith & Fredrick Highsmith[,] Jt Ten," showing a balance of $4,640.06in cash and money market funds; (2) plaintiff's tax return for 2000 showing that he paid taxes ondividends from the account; and (3) Derrick's 1998 tax return reporting no interest or dividendincome. Plaintiff testified that he was 60 years old and Derrick was 30 years old. Plaintiff openedthe account in 1975 or 1976 with an initial deposit of $1,500. The remaining funds in the accountwere "[d]ividends and interest reinvestment." Derrick never deposited any money in the account. Plaintiff reported the income from the account on his tax returns; Derrick did not. Plaintiff testifiedthat he set up separate accounts for the education of Derrick and Derrick's brother. According toplaintiff, "Derrick's name was on the account providing that Derrick would go to school and it wouldbe set aside for his education." Plaintiff acknowledged that Derrick had the right to withdraw fundsfrom the account, but added that "he never did, because he never did question me about the account. And he really didn't have anything to do with it, other than I just had his name added onto it."

The Department concluded that "the documentary evidence [plaintiff] provided does notestablish that he is the sole owner of any portion of this account." (Emphasis added.) As noted, thetrial court reversed this decision. This appeal followed.

Under Article X of the Illinois Public Aid Code (Code) (305 ILCS 5/10--1 et seq. (2000)),the Department is authorized to enforce child support obligations owed to persons receiving financialaid under the Code. Section 10--25.5(a) of the Code provides that "[t]he State shall have a lien onall legal and equitable interests of responsible relatives in their personal property, including anyaccount in a financial institution *** in the amount of past-due child support." 305 ILCS 5/10--25.5(a) (West 2000). "Responsible relative" means the parent or spouse of a child under the age of21. 305 ILCS 5/2--11 (West 2000). Moreover, under applicable definitions, a money market mutualfund is considered an account in a financial institution. See 305 ILCS 5/10--24 (West 2000).

By rule, the Department has provided a joint owner of personal property upon which a lienhas been placed with the right to a hearing to contest the lien. 89 Ill. Adm. Code