In re Marriage of Lum, 2021 IL App (1st) 210981-U

1. Case citation and parties
- In re Marriage of Lum, 2021 IL App (1st) 210981-U (1st Dist., Dec. 28, 2021) (Rule 23 order; non‑precedential).
- Petitioner: W. Kehaulani Lum. Respondent: Louis D’Angelo. Intervenor‑Appellant: Republic Bank of Chicago. Court‑appointed receiver/ appellee: James E. Sullivan.

2. Key legal issues
- Whether a non‑party mortgagee (Republic Bank) was entitled to prior notice and an opportunity to be heard before a receiver was appointed in a post‑dissolution enforcement proceeding.
- Whether the trial court erred by waiving the bond requirement for the receiver (735 ILCS 5/2‑415(a)) without a statutorily required hearing/notice.
- Whether appointment of a receiver under the circumstances was an abuse of discretion.
- Ancillary: standing of the receiver to defend the appointment on appeal.

3. Holding/outcome
- The appellate court affirmed the trial court’s denial of Republic Bank’s motion to vacate the receiver appointment and remanded for further proceedings. The court held Republic Bank was not entitled to prior notice because it was not a party when the receiver was appointed; its intervention and later hearing cured any due process concerns. Standing objection to the receiver was waived.

4. Significant legal reasoning
- Procedural due process: The court emphasized that a non‑party creditor is not automatically entitled to advance notice of an appointment made in litigation to which it is not yet a party. Due process requires notice and opportunity to be heard, but those protections are satisfied where the non‑party is allowed to intervene and obtain a full hearing thereafter. Prejudice must be shown to establish a due process violation; here Republic Bank obtained intervention and a full hearing and therefore could not show prejudice.
- Statutory bond requirement: The trial court’s waiver of bond was not reversible where the receiver’s appointment resulted from an agreed order between the divorcing parties to purge contempt and the court found bond unnecessary given the character of the property (unfinished/unrentable) and assurances protecting the mortgagee’s lien. The appellate opinion rejected belated challenges that were not timely raised in the trial court.
- Standing: Republic Bank’s late attack on the receiver’s standing was waived because standing was not timely raised below or in its opening brief.

5. Practice implications
- Creditors with recorded liens should promptly intervene in post‑judgment or enforcement proceedings where receivership is possible; waiting until after a consensual order can substantially limit relief.
- If a receiver is appointed by agreed order, non‑parties must act quickly to protect lien rights (seek intervention, request bond or stipulate protections for mortgage/rent assignments).
- Preserve challenges (standing, notice, statutory arguments) at the trial level and in opening appellate briefs to avoid waiver.
- Courts retain wide discretion on bond and receiver terms; litigants should document prejudice and seek immediate relief when bond or procedural protections are omitted.