Bank of America, N.A. v. Freed

Illinois Appellate Court
Civil Court
Citation
Case Number: 
2011 IL App (1st) 110749
Decision Date: 
December 28, 2012
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Justice: 
QUINN
Holding: 
Affirmed.
Bank filed action to foreclose $205 million loan guaranteed by Defendants. As Defendants disputed appointment of a receiver for 341 days, during which Bank incurred substantial additional legal fees, court properly entered judgment pursuant to "carve-out" provision of guaranty requiring Defendants to pay full amount due plus costs and interest if they took "any action" in connection with appointment of a receiver. An Illinois LLC has no interest that is affected when a charging order is entered on a judgment debtor's distributional interest because the party for whom order is entered is not an owner of LLC and has no authority over its affiars; thus, LLC has no interest to be protected and need not be made a party. (HARRIS and CONNORS, concurring.)