Plaintiffs filed a declaratory judgment action seeking to quash a subpoena issued to their bank by the defendant, the Illinois Securities Department of the Secretary of State. The circuit court granted summary judgment in favor of the defendant and plaintiffs appealed, arguing that the doctrine of res judicata barred the issuance of the subpoena or that the subpoena was invalid because its scope was unreasonable and not relevant. The appellate court affirmed, finding that the trial court properly concluded that res judicata was inapplicable under the facts of the case and that the subpoena was narrowly tailored and not overly broad in its scope. The appellate court also concluded that the scope of the subpoena was reasonable given concerns about related-party transactions and other potentially fraudulent conduct and that it fell within the department’s anti-fraud authority. (D.B. WALKER and R. VAN TINE, concurring)
Illinois Appellate Court
Civil Court
Subpoena