Derivative plaintiff, a member of a limited liability corporation, brought a foreclosure and breach of contract action to recover on an alleged note and mortgage against a fellow member of the corporation for the concealed sale of a property by an entity owned, in part, by the defendant. The circuit court held that plaintiff’s complaint was time barred by the five-year statute of limitations on unwritten contracts. The trial court also held that the fraudulent concealment doctrine did not toll the limitations period. The appellate court affirmed the latter, finding that the fraudulent concealment doctrine did not apply to plaintiff’s claim, but reversed the dismissal by finding that the cause of action was not time barred because it was controlled by the 10-year limitations period where the note constituted a negotiable promissory note. (BRENNAN and PETERSON, concurring)
Illinois Appellate Court
Civil Court
Contract Law