Plaintiff physicians allege that 2 of their former employees from their billing department embezzled millions of dollars in funds from them, and created sham entities with similar names then opened accounts at 2 banks. Court properly found that Defendants-Appelless' (2 health insurance companies whose insureds received medical services from Plaintiffs) obligations to two plaintiff physicians were discharged. There are not set of facts which Plaintiffs can allege that would entitled them to recover against Defendants under Illinois' Uniform Commercial Code. Section 3-414 of UCC extinguished insurers' obligation to pay when the checks were accepted at the depositing banks. Thus, insurers' obligation to pay for medical services performed by Plaintiffs was discharged pursuant to Section 3-414(c) of UCC. The checks were not dishonored and thus Section 3-414(b) is not triggered.(CUNNINGHAM and CONNORS, concurring.)
Illinois Appellate Court
Civil Court
Uniform Commercial Code