Plaintiff brought a qui tam action under the Illinois False Claims Act alleging that the defendant knowingly failed to collect and remit taxes under the Retailers’ Occupation Tax and the Use Tax Act. The trial court granted summary judgment in favor of the defendant by finding that the plaintiff failed to show that the defendant acted with reckless disregard. The plaintiff appealed, arguing that the trial court applied the wrong standard for reckless disregard and that the trial court wrongly relied on the False Claims Act’s false record and statement requirement, which was eliminated by legislative action. The appellate court affirmed, finding that as a matter of law, the defendant did not violate the False Claims Act in failing to collect and remit Illinois use tax on its merchandise sold in Illinois and on its Internet and telephone sales to Illinois customers. (ODEN JOHNSON and TAILOR, concurring)
Illinois Appellate Court
Civil Court
False Claims Act