Commercial Banking, Collections, and Bankruptcy

Public Act 101-191

Topic: 
Civil post-judgment proceedings

(Mulroe, D-Chicago; Martwick, D-Chicago) makes the following changes to postjudgment proceedings: 1) Provides that a judgment creditor is entitled to prosecute citations to discover assets (instead of supplementary proceedings) for the purposes of examining the judgment debtor or any other person; 2) Deletes language providing that it is not a prerequisite to the commencement of a supplementary proceeding that a certified copy of the judgment has been returned wholly or partly unsatisfied; 3) Provides that summons shall be returnable not less than 21 nor more than 40 days (rather than 30 days) after the date of issuance; 4) Provides that summons shall be served with one copy (rather than four copies) of the interrogatories and that a summons shall be served in the same manner as provided by the Illinois Supreme Court Rule for additional relief on a party in default. Effective August 2, 2019. 

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In re: Jaffe

Federal 7th Circuit Court
In re: Jaffe
Civil Court
Bankruptcy
Citation
Case Number: 
No. 18-2726
Decision Date: 
August 5, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Reversed and remanded

Dist. Ct. erred in finding that debtor could exempt his contingent future interest in his joint tenancy by the entirety in his marital home under circumstances where debtor’s wife had died prior to completion of debtor’s Chapter 7 bankruptcy petition. Record showed that debtor had listed $1.04 million debt that was secured by judgment lien on his residence, and debtor attempted to exempt his contingent future interest in said tenancy by entirety interest from attachment of said lien under 11 USC section 522(b)(3)(B). While said section could exempt debtor’s tenancy in entirety interest in marital home, it would not exempt his contingent future interest in obtaining fee simple interest in marital home at time his wife died, since Ill. law does not exempt from judgment contingent future interests held by tenants by entirety and only exempts debtor’s tenancy interest from attachment of judgment lien.

Public Act 101-184

Topic: 
Special interrogatory

(Thapedi, D-Chicago; Mulroe, D-Chicago) amends the special interrogatory provision in the Code of Civil Procedure to do the following: (1) Makes it discretionary with the court on whether to give a special interrogatory if requested by any party. It is now mandatory if any party requests; (2) The appellate standard to review a trial court’s decision on whether to give a special interrogatory is abuse of discretion; (3) If a special finding of fact is inconsistent with the general verdict, the court is required to direct the jury to further consider its answer and verdict. If the jury can’t render a general verdict consistent with the special finding, the court must order a new trial; (4) During closing argument, the parties are allowed to explain to the jury what may result if the general verdict is inconsistent with any special finding. Effective immediately and will apply to trials commencing on or after Jan. 1, 2020.

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Public Act 101-177

Topic: 
Equal Pay Act

(Moeller, D-Elgin; Castro, D-Elgin) makes it unlawful for an employer to require an employee to sign a contract or waiver that would prohibit the employee from disclosing or discussing information about the employee’s wages, salary, benefits, or other compensation. It also makes it unlawful for an employer to seek the wage or salary history—including benefits or other compensation—of a job applicant from any current or former employer unless it is a matter of public record or if the job applicant is a current employee  and is applying for a position with the same current employer. Makes other changes. Takes effect 60 days after it becomes law or March 1, 2020. 

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Public Act 101-168

Topic: 
Consumer debt and collections

(Guzzardi, D-Chicago; Martinez, D-Chicago) provides that a “consumer debt judgment” of $25,000 or less draws interest at the rate of 5% per annum. A consumer debt judgment may be revived by filing a petition to revive the consumer debt judgment no later than 10 years after its entry. If a judgment or consumer debt judgment becomes dormant during an enforcement proceeding against wages, the enforcement may continue to conclusion if the enforcement is done under court supervision and includes a wage-deduction order or turn-over order and is against an employer, garnishee, or other third party respondent.

Effective January 1, 2020 and applies to all consumer debt judgments entered into after this date.

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Mathews v. REV Recreation Group, Inc.

Federal 7th Circuit Court
Mathews v. REV Recreation Group, Inc.
Civil Court
Warranty
Citation
Case Number: 
No. 18-1982
Decision Date: 
July 26, 2019
Federal District: 
N.D. Ind., Ft. Wayne Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendant-manufacturer’s motion for summary judgment in action by plaintiffs-purchasers of recreational vehicle (RV) manufactured by defendant, alleging that defendant breached express and implied warranties issued by defendant on said RV, after RV experienced series of mechanical problems shortly after plaintiffs took possession of RV. Record showed that: (1) RV experienced problems with its slide cable, TV, and DVD, which were initially fixed, but then experienced more problems with said items; (2) RV subsequently experienced problems with its air conditioning unit, main slide and scaling tape; and (3) at some point, plaintiffs asked defendant to buy back RV, but defendant declined and instead promised to repair issues pursuant to its warranty. As such, Dist. Ct. could properly find that plaintiffs failed to show that defendant did not honor its warranties where: (1) although instant RV experienced numerous problems, defendant repaired all mechanical issues brought to its attention during warranty period; and (2) plaintiffs failed to give defendant opportunity to repair mechanical issues that occurred after defendant’s last tender of repaired RV back to plaintiffs. Moreover, because defendant had only two chances to fix certain mechanical problems, plaintiffs could not show under Indiana law that express warranty failed of its essential purpose.

Public Act 101-97

Topic: 
Mortgage Act

(Walker, D-Arlington Heights; Murphy, D-Des Plaines) adds a person authorized by the mortgagor, grantor, heir, legal representative, or assign to the list of those who may request that the mortgagee of real property execute and and deliver a release of a mortgage or deed of trust. If any mortgagee or trustee does not, within 30 days (rather than "one month") after the payment of the debt secured by the mortgage or trust deed complies with specific requirements, then it is liable for the sum of $200 to the aggrieved party. The successor in interest to the mortgagee or trustee is not be liable for the $200 penalty if it complies with specific requirements within 30 days (rather than "one month") after succeeding to the interest.

Effective January 1, 2020. 

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Bernal v. NRA Group, LLC

Federal 7th Circuit Court
Bernal v. NRA Group, LLC
Civil Court
Fair Debt Collection Practices Act
Citation
Case Number: 
No. 17-3629
Decision Date: 
July 19, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

 

Dist. Ct. did not err in finding that defendant debt-collector’s $43.28 cost to mail single collection letter counted as “collection cost” under contract between parties for purposes of section 1692(f) of Fair Debt Collection Practices Act, even though plaintiff-debtor argued that said cost violated section 1692(f) because it was not “expressly authorized by the agreement creating the debt.” Contract at issue allowed for creditor to collect “any cost”, and most reasonable reading of said term is to include fees paid in attempting to collect on instant debt. Fact that instant cost had not been incurred at time demand was made did not require different result, since creditor would be responsible for $43.28 cost if debtor paid on debt.

In re: Cranberry Growers Cooperative

Federal 7th Circuit Court
In re: Cranberry Growers Cooperative
Civil Court
Bankruptcy
Citation
Case Number: 
No. 18-3289
Decision Date: 
July 17, 2019
Federal District: 
W.D. Wisc.
Holding: 
Reversed and remanded

Bankruptcy Ct. erred in finding that direct payments made by debtor’s customers to debtor’s creditor did not constitute “disbursements” for purposes of 28 USC section 1930(a)(6), when calculating debtor’s quarterly fees owed to Trustee in instant Chapter 11 bankruptcy proceeding. Such payments are disbursements, where said term has expansive meaning that included payments made in ordinary course of business. Moreover, instant payments to debtor’s creditor were made on debtor’s behalf for purpose of paying down debtor’s revolving line of credit. Ct. also rejected debtor’s request to waive said quarterly fees and further found that debtor’s contention that Bankruptcy Ct.’s use of amended fee schedule violated uniformity requirement under Bankruptcy Clause of U.S. Constitution was untimely because it had failed to raise said issue in Bankruptcy Ct.

Public Act 101-48

Topic: 
Illinois Trust Code

(Ann Williams, D-Chicago; Mulroe, D-Chicago) is an Illinois-centric version of the Uniform Trust Code. It is intended to modernize trust law in the State of Illinois, codify common law concepts that currently apply to trusts, and provide uniformity in relation to trust law in other states.  Effective January 1, 2020.

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