Commercial Banking, Collections, and Bankruptcy

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.

In re: South Beach Securities, Inc.

Federal 7th Circuit Court
In re: South Beach Securities, Inc.
Civil Court
Bankruptcy
Citation
Case Number: 
No. 09-3079 & 09-3177 Cons.
Decision Date: 
May 19, 2010
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Bankruptcy Judge did not err in refusing to confirm Chapter 11 reorganization plan and then dismissing bankruptcy proceeding. Reorganization plan cannot be confirmed under 11 USC section 1129(d) where, as here, only purpose of plan was to avoid taxes by effectively transferring net operating losses of debtor (shell corporation having no income or assets) to sole creditor. Moreover, instant plan was not proposed in good faith where debtor had originally been solvent, but underwent series of transactions designed to confer tax benefit on creditor.

Bank of America v. 108 N. State LLC

Bank of America v. 108 N. State LLC
Illinois Appellate Court
Civil Court
Mortgage Foreclosure
Citation
Case Number: 
No. 1-09-3523
Decision Date: 
Wednesday, March 31, 2010
District: 
1st Dist.
Division/County: 
Cook Co., 3rd Div.
Holding: 
Affirmed.
Justice: 
QUINN
Court granted motion for appointment of receiver in mortgage foreclosure proceeding. Qualifications of current management are insufficient basis to find good cause to permit mortgagor to retain possession of "Block 37" retail space and underground pedway connecting to CTA trains. Statutory presumption in favor of commercial mortgagee means that Plaintiff is not obligated to allege or prove that Defendants were not properly managing property to be entitled to possession. Receiver's representation of current and prospective tenants in lease negotiations for subject property and for nearby competing properties does not constitute "good cause" under Mortgage Foreclosure Law.

In re: Altheimer & Gray

Federal 7th Circuit Court
In re: Altheimer & Gray
Civil Court
Bankruptcy
Citation
Case Number: 
No. 09-3336
Decision Date: 
April 15, 2010
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Bankruptcy Ct. did not err in denying creditor's motion to have Trustee pay his claim where creditor was non-unit partner of defunct debtor-law firm, and where creditor sought return of capital contributions and unpaid compensation pursuant to Chapter 11 plan. Terms of plan specifically required that claims of non-unit partners be subordinated to debts owed to other creditors, and while creditor's position within law firm would not be viewed as partner under Uniform Partnership Act, creditor could not rely on definition of partner in Act to gain priority for his claim. Fact that creditor's claim was allowed did not mean that it was required to be paid where, as here, said claim did not enjoy high enough priority.

National Inspection and Repairs, Inc. v. George S. May International Co.

Federal 7th Circuit Court
National Inspection and Repairs, Inc. v. George S. May International Co.
Civil Court
Contracts
Citation
Case Number: 
No. 09-1051
Decision Date: 
April 9, 2010
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Dist. Ct. did not err in granting defendant's motion for summary judgment in action alleging breach of contract and fraudulent and negligent misrepresentation arising out of parties' contract in which defendant agreed to provide business consulting services and where one of defendant's employees who was subsequently hired by plaintiff allegedly stole money from plaintiff after his hire by plaintiff. Record showed that plaintiff itself breached contract by hiring defendant's employee in contravention to contract's no-hire provision. Moreover, although plaintiff claimed that defendant had improperly failed to perform criminal background check on subject employee, there was nothing in record to show that said employee had criminal history.