Commercial Banking, Collections, and Bankruptcy

Senate Bill 3474

Topic: 
Ejectment

(Barickman, R-Bloomington) amends the Ejectment Article of the Code of Civil Procedure. It provides that a plaintiff is entitled to recover either the profits received by the defendant or lost by the plaintiff. The jury of an ejectment action may assess damages in the amount of mesne profits lost by the plaintiff (in addition to those received by the defendant) since the defendant entered into possession of the premises. Assigned to Senate Judiciary Committee. 

Senate Bill 3852

Topic: 
Adult Protective Services Act and mandated reporters

(Villivalam, D-Chicago) expands the definition of "mandated reporter" to include a person who performs the duties of a banker, broker, investor, investment advisor, attorney, financial consultant or financial advisor, broker-dealer, or administrator, regulator, or supervisor of any of the foregoing. Just introduced. 

Senate Bill 3840

Topic: 
Medicaid spend-down

(Villivalam, D-Chicago) Amends the Medical Assistance Article of the Illinois Public Aid Code. It provides that a person who uses Medicaid spend-down to qualify for medical assistance may not be eligible for medical assistance if the person does not meet his or her monthly spend-down for six consecutive months. Just introduced. 

House Bill 4909

Topic: 
The Legal Business Solicitation Act

(Williams, D-Chicago) makes it a Class B misdemeanor for an attorney or person acting on his or her behalf to make a false or deceptive statement concerning the existence of a settlement fund to a resident of the State or regarding a legal matter pending now or in the future before a court if such a statement was made to induce a person to enter into a contract of employment for representation. If a contract of employment with an attorney was obtained before the effective date of the Act, the legal matter has not been resolved, and the contract was entered into in violation of the Act, the attorney must do the following: inform the client that the attorney had previously made a false or deceptive statement regarding the existence of a settlement fund or payments to a resident of the State or regarding a legal matter pending now or in the future before a court in the State; and obtain the written consent of the client to allow the attorney to continue to represent the client in the pending legal matter. Just introduced. 

House Bill 4220

Topic: 
Toll Highway Act and personal information

(Sosnowski, R-Rockford) provides that the Illinois State Toll Highway Authority may make personally identifiable information of a person available to a law enforcement agency only under a search warrant. Requires the Authority to immediately but no later than five days to notify the person that his or her records have been obtained and shall provide the person with a copy of the search warrant and the identity of the law enforcement agency or peace officer to whom the records were provided unless the search warrant provides otherwise. Just introduced. 

House Bill 5044

Topic: 
Code of Civil Procedure

(Hoffman, D-Belleville) amends the Code of Civil Procedure to provide that all actions shall be tried in the county in which they are commenced, unless a statute specifically requires transfer to a different county (rather than except as otherwise provided by law). Abolishes the doctrine of intrastate forum non conveniens. Just introduced. 
 

In re: hhgregg, Inc.

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 18-3363
Decision Date: 
February 11, 2020
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed

In instant Chapter 11 bankruptcy proceeding, Bankruptcy Ct. did not err in subordinating creditor’s reclamation claim under section 546(c) of Bankruptcy Code, seeking return of its appliances that were sold/delivered to insolvent retail debtor within 45 days of debtor filing for Chapter 11 bankruptcy petition. Record showed that prior to debtor filing for bankruptcy protection, bank had extended operating financing under credit agreement that treated bank’s cash advances to debtor as secured by first-priority floating lien on existing and after-acquired inventory, and that prior to creditor serving debtor with instant reclamation claim, debtor sought and obtained from Bankruptcy Ct. debtor-in-possession (DIP) financing from bank that gave instant bank priming, first-priority floating lien on debtor’s existing and after-acquired inventory and its proceeds. Under Bankruptcy Abuse Prevention and Consumer Protection Act, seller’s right to reclaim goods is subject to prior rights of security interest in said such goods or proceeds thereof, and bank, through DIP agreement, had priority over inventory at issue in instant reclamation claim.

 

18 Rabbits, Inc. v. Hearthside Food Solutions, LLC

Illinois Appellate Court
Civil Court
Forum Non Conveniens
Citation
Case Number: 
2020 IL App (2d) 190574
Decision Date: 
Monday, February 3, 2020
District: 
2d Dist.
Division/County: 
Du Page Co.
Holding: 
Affirmed.
Justice: 
JORGENSEN

Contract dispute over problems with manufacture of organic granola bars. Court did not abuse its discretion in denying Defendant's motion to dismiss Plaintiff's complaint for forum non conveniens, after balancing all relevant factors. Plaintiff's choice of forum (Illinois) is entitled to some weight, even though it is a California-based company,  Other factors weigh in favor of transfer to Michigan, where meeting of parties occurred and where Defendant's facility is location, such as the viewing of the premises and a less congested court docket. It was reasonable for court to determine that factors did not strongly favor dismissal and removal to Michigan. (HUDSON and BRIDGES, concurring.)

House Bill 4025

Topic: 
Constructive service in evictions

(Didech, D-Buffalo Grove) amends the Eviction Article of the Code of Civil Procedure to provide if the plaintiff is unable to obtain personal service on the defendant, the sheriff must cause the notice of eviction litigation to be posted on the website of the county where the cause is to be tried at least 10 days before the day set for the appearance. Applies only in counties that have a website maintained by the county. Just introduced. 

Dennis v. Niagara Credit Solutions, Inc.

Federal 7th Circuit Court
Civil Court
Fair Debt Collection Practices Act
Citation
Case Number: 
No. 19-1654
Decision Date: 
December 30, 2019
Federal District: 
S.D. Ind., New Albany Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendant-debt collector’s motion for judgment on pleadings in plaintiff-debtor’s action alleging that defendant’s dunning letter, which listed both “original” and “current” creditors, was misleading under Fair Debt Collector’s Practices Act (FDCPA). While plaintiff argued that dunning letter failed to clearly and effectively identify name of creditor to whom debt was owed, defendant’s letter expressly named one entity as current creditor, which was sufficient under FDCPA. Also, Ct. of Appeals found that unsophisticated consumer would understand that plaintiff’s debt had been purchased by “current” creditor and rejected contention that letter should have spelled out that current creditor had purchased debt from original creditor.