Commercial Banking, Collections, and Bankruptcy

In re: Meyers

Federal 7th Circuit Court
In re: Meyers
Civil Court
Bankruptcy
Citation
Case Number: 
No. 09-3478
Decision Date: 
August 2, 2010
Federal District: 
S.D. Ill.
Holding: 
Affirmed
Dist. Ct. did not err in affirming Bankruptcy Ct. order that pro-rated debtor tax refund pursuant to date bankruptcy petition had been filed in tax year to calculate proportion of refund that belonged to pre-petition asset pool. Record showed that pro-rata by days method used by Dist. Ct. was appropriate where debtor's federal and state withholding taxes tracked her income, and where debtor failed to provide evidence that debtor's rate of income varied throughout tax year so as to support alternative calculation method.

Alliance 3PL Corp. v. New Prime Inc.

Federal 7th Circuit Court
Alliance 3PL Corp. v. New Prime Inc.
Civil Court
Contracts
Citation
Case Number: 
No. 09-3489
Decision Date: 
August 2, 2010
Federal District: 
N.D. Ill., E. Div.
Holding: 
Reversed
Dist. Ct. erred in failing to grant defendant's Rule 50 motion for judgment as matter of law in action alleging that defendant violated back-solicitation clause by obtaining shipping contract from one of plaintiff's clients after defendant had ceased doing business on behalf of plaintiff. No violation of clause occurred where defendant had performed same shipping work for said client prior to time defendant began performing shipping work for plaintiff. Moreover, ordinary meaning of term traffic as contained in clause meant that defendant was precluded from generating shipping business only from plaintiff's clients with whom defendant had no relationship prior to performing services for plaintiff.

Fusion Capital Fund II, LLC v. Ham

Federal 7th Circuit Court
Fusion Capital Fund II, LLC v. Ham
Civil Court
Contracts
Citation
Case Number: 
No. 09-3723
Decision Date: 
August 2, 2010
Federal District: 
N.D. Ill., E. Div.
Holding: 
Reversed
Dist. Ct. erred in finding that defendants-sole stockholders and Bd. members of insolvent corporation owed plaintiff $1.2 million in legal fees associated with plaintiff's underlying lawsuit against corporation alleging tortious interference. While plaintiff and corporation entered into contract that covered instant award of attorney fees, Dist. Ct. could not, under Nevada law, impose said fees on instant stockholders since plaintiff was aware of corporation's insolvency at time contract had been effectuated. Moreover, plaintiff had not required that instant defendants be guarantors of corporation's debts.

Kovacs v. U.S.

Federal 7th Circuit Court
Kovacs v. U.S.
Civil Court
Bankruptcy
Citation
Case Number: 
No. 09-3328
Decision Date: 
July 29, 2010
Federal District: 
E.D. Wisc.
Holding: 
Affirmed and reversed in part and remanded
Dist. Ct. did not err in dismissing as untimely portion of plaintiff-taxpayer's action alleging that IRS violated discharge injunction provisions of section 524 of Bankruptcy Code by seeking to collect on back taxes that had been discharged in prior bankruptcy. Plaintiff's cause of action accrued at time IRS sent certain notices of intent to levy that concerned tax years that had been discharged, and instant case was filed beyond two-year limitation period (as set forth in 26 USC section 7433(e)) after said notices had been sent to plaintiff. Moreover, plaintiff could not otherwise invoke continuing violation doctrine since issuance of said notices constituted discreet act. However, Dist. Ct. erred in dismissing portion of case that concerned IRS issuance of collection letters that occurred within applicable two-year limitation period.

In re: Smith

Federal 7th Circuit Court
In re: Smith
Civil Court
Bankruptcy
Citation
Case Number: 
No. 08-2880
Decision Date: 
July 27, 2010
Federal District: 
N.D. Ill., E. Div.
Holding: 
Reversed and remanded
In Chapter 13 bankruptcy proceeding in which debtors attempted to avoid tax deed to their home that had been issued and recorded within two years of said petition, Dist. Ct. erred in denying debtors relief under bankruptcy fraudulent transfer statute (11 USC section 548) where Dist. Ct. erred in finding that applicable 2-year period for setting aside tax sale under section 548 began upon expiration of period for tax deed redemption, as opposed to subsequent date that tax deed is actually recorded. Under Ill. tax sale process, taxbuyer's interest is perfected against bona fide purchasers when taxbuyer records tax deed, and debtor's interest in his or her property is superior to that of taxbuyer up until tax deed is recorded.

Bright Horizons Children's Centers v. Riverway Midwest II

Bright Horizons Children's Centers v. Riverway Midwest II
Illinois Appellate Court
Civil Court
Leases
Attorney's Fees
Citation
Case Number: 
No. 1-09-2719
Decision Date: 
Friday, June 25, 2010
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Affirmed.
Justice: 
ROBERT E. GORDON
(Court opinion corrected 7/14/10.) Tenant, a child-care center, filed declaratory judgment action as landlord refused to offer suitable relocation space on ground floor. DCFS regulations required ground-floor space for facility caring for infants and toddlers, unless exception approved by fire marshall inspection; tenant would be in violation of DCFS regulations if operating in alternate second-floor space offered. Lease agreement referenced DCFS licensing standards, and contained relocation provision which required that alternative location be mutually satisfactory to tenant and landlord. Thus, by landlord's refusal to offer suitable alternative space, landlord defaulted and its actions triggered attorneys fees shifting provision of contract, requiring landlord to pay tenant's attorneys fees. Tenant conceded that ground-floor requirement was not discussed in lease negotiations, thus court properly denied landlord's motion to compel depositions of tenant's employees who participated in negotiations. (J. GORDON and McBRIDE, concurring.)

India Breweries, Inc. v. Miller Brewing Co.

Federal 7th Circuit Court
India Breweries, Inc. v. Miller Brewing Co.
Civil Court
Contracts
Citation
Case Number: 
No. 08-4109
Decision Date: 
July 21, 2010
Federal District: 
E.D. Wisc.
Holding: 
Affirmed
Dist. Ct. did not err in granting defendant's motion for summary judgment in plaintiff's action alleging that defendant breached contract by refusing to inspect for suitability certain proposed brewing facilities located in India as part of contract seeking right to brew defendant's beer. Language of contract did not require defendant to travel to India to inspect said potential breweries where specifications tendered to defendant for proposed facilities indicated that proposed facility would not be able to satisfy defendant's minimum production requirements.

In re: Solis

Federal 7th Circuit Court
In re: Solis
Civil Court
Bankruptcy
Citation
Case Number: 
No. 09-4075
Decision Date: 
July 9, 2010
Federal District: 
N.D. Ill., W. Div.
Holding: 
Affirmed
Bankruptcy Ct. did not err in limiting attorney's fee to percentage of $60,000 settlement proceeds received by debtor in underlying action through efforts of said attorney even though attorney asserted that applicable 40% contingency agreement also applied to $62,410 that debtor had previously obtained in partial satisfaction of same debt prior to attorney being retained by debtor. While language of settlement agreement included waiver of any claim by third-party to return of said $62,410, language of contingency agreement did not make clear that debtor would be required to pay attorney 40% of $62,410 that debtor had already received through his own efforts.

In re: McKinney

Federal 7th Circuit Court
In re: McKinney
Civil Court
Bankruptcy
Citation
Case Number: 
No. 08-1271
Decision Date: 
June 23, 2010
Federal District: 
C.D. Ill.
Holding: 
Appeal dismissed
Dist. Ct. lacked jurisdiction to consider creditor's appeal of Bankruptcy Ct.'s order that denied creditor's objection to proposed Chapter 13 bankruptcy plan that would allow debtor five years to pay off tax debt with interest, rather than 60 days as requested by creditor. Bankruptcy Ct. order was not final and appealable since creditor had not yet submitted claim to bankruptcy estate, and Bankruptcy Ct. had not yet determined amount due to creditor or priority of its claim.

ABN Amro Mortgage Group, Inc. v. McGahan

ABN Amro Mortgage Group, Inc. v. McGahan
Illinois Supreme Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
No.107954
Decision Date: 
Friday, June 4, 2010
District: 
1st Dist.
Division/County: 
Cook Co.
Holding: 
Appellate court reversed.
Justice: 
BURKE
Mortgagee must name a personal representative for a deceased mortgagor in a mortgage foreclosure proceeding for circuit to court to acquire subject matter jurisdiction.