Commercial Banking, Collections, and Bankruptcy

Accettura v. Vacationland, Inc.

Illinois Supreme Court PLAs
Accettura v. Vacationland, Inc.
Civil Court
Commercial Code
Citation
PLA issue Date: 
January 31, 2019
Docket Number: 
No. 124285
District: 
2nd Dist.

This case presents question as to whether trial court properly granted defendant’s motion for summary judgment in action by plaintiffs to recover purchase price of recreational vehicle that plaintiffs claimed was defective. Trial court found that plaintiffs had revoked acceptance of vehicle at time which did not provide defendant reasonable opportunity to cure any defects. Appellate Court found that “reasonable opportunity” to cure defects was defined in section 3(b) of Ill. Commercial Code, and that two-week span between time plaintiffs asked defendant to repair vehicle and time they revoked acceptance was not reasonable. Appellate Court also rejected plaintiffs contention that defendant was required to provide new vehicle under section 2-508 of UCC and further found that under section 2-608(1)(b) seller has right to cure any defects prior to buyer revoking acceptance, where, as here, defendant made such offer to cure defect.

House Bill 832

Topic: 
Vacancy Fraud Act

(Martwick, D-Chicago) allows a taxing body or its representative to file a vacancy-fraud complaint with the county board of review if the property is receiving vacancy relief and the property owner is not actively attempting to lease, sell, or alter the property. It sets forth factors in determining whether vacancy fraud has occurred and its penalties. House Bill 832 was just introduced. 

View Full Text of Legislation

In re: Calvert

Federal 7th Circuit Court
In re: Calvert
Civil Court
Collateral Estoppel
Citation
Case Number: 
No. 17-1895
Decision Date: 
January 22, 2019
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed

Record contained sufficient evidence to support Bankruptcy Ct.’s finding that debtor did not act maliciously when laying off most of its electricians, after labor organization unsuccessfully campaigned to unionize said employees of debtor’s company, so as to make $400,000 debt (created by NLRB finding that debtor violated N.L.R.A. when laying off said employees) dischargeable in debtor’s Chapter 7 bankruptcy. While NLRB argued that debtor was collaterally stopped from litigating malice issue, NLRB failed to adequately identify any specific finding in prior NLRB ruling regarding issue of debtor’s malice that should be given preclusive effect in instant Bankruptcy Ct. proceeding. Moreover, prior NLRB proceeding lacked specificity on issue of debtor’s intent. (Dissent filed.)

Senate Bill 30

Topic: 
Workplace Transparency Act.

(Bush, D-Grayslake) creates the Workplace Transparency Act. It provides that employers may not require an employee or prospective employee to sign a nondisclosure agreement that contains any provision that has the purpose or effect of limiting the disclosure of sexual misconduct, retaliation, or unlawful discrimination; suppressing information relevant to an investigation into a claim of sexual misconduct, retaliation, or unlawful discrimination; impairing the ability of any person to report a claim of sexual misconduct, retaliation, or unlawful discrimination; or waiving a substantive or procedural right or remedy of any person relating to a claim of sexual misconduct, retaliation, or unlawful discrimination. Makes such agreements void as against public policy and unenforceable, and that agreements that contain such provisions but entered into before the effective date of the Act are voidable by a party who entered into the agreement under specified circumstances. Senate Bill 30 was just introduced. 

National Collegiate Student Loan Trust 2004-1 v. Ogunbiyi

National Collegiate Student Loan Trust 2004-1 v. Ogunbiyi
Illinois Appellate Court
Civil Court
Garnishment
Citation
Case Number: 
2018 IL App (1st) 170861
Decision Date: 
Monday, December 24, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div,
Holding: 
Reversed and remanded.
Justice: 
WALKER

(Court opinion corrected 1/14/19.) Defendant failed to repay her student loans. Once she found employment, the note holder sought an order garnishing 15% of her pretax income. The wage deduction provisions in Section 12-803 of Code of Civil Procedure explicitly eliminated circuit court discretion in determination of amount to deduct from wages.  Court has no discretion in a request for a wage deduction order on grounds of extreme hardship. (MIKVA and GRIFFIN, concurring.)

House Bill 332

(Wehrli, R-Naperville) amends the Illinois Governmental Ethics Act to make the following changes. (1) Modifies the term "representation case" to include matters before a unit of local government. (Now, it applies to professional representation before a state agency.) (2) Provides that, among other restrictions, no legislator may accept or participate in any way in any representation case before the State of Illinois or any unit of local government that involves a challenge to any tax or proposed assessment of any tax or fee. Provides that the prohibition against participation in such a representation case does not apply to a person with whom the legislator maintains a close economic association, unless a fee or compensation received regarding any matter that involves a challenge to any tax or proposed assessment of any tax or fee is received by the legislator directly or indirectly through any interest in a partnership, limited liability corporation, or other business entity. House Bill 332 was just introduced. 

View Full Text of Legislation

House Bill 281

Topic: 
Post-judgment changes

(Guzzardi, D-Chicago) amends the Code of Civil Procedure to do the following. (1) Provides that a summons issued in an action to collect a debt shall include a separate notice containing specified language regarding debtor rights. Provides that the clerk of the court shall cause the notice to be posted in courtrooms or in the hallway in front of courtrooms and be available for distribution in all courtrooms hearing cases involving debt collection matters. (2) Provides that a judgment may be revived by filing a petition to revive the judgment in the fifth year after its entry (instead of the seventh year after its entry, or in the seventh year after its last revival, or in the twentieth year after its entry, or at any other time within 20 years after its entry if the judgment becomes dormant). Provides that a petition to revive the judgment may be granted only if citation proceedings were initiated within one year of the judgment being entered. (3) Changes the limitations period for the enforcement of certain judgments from seven to five years. (4) Makes changes in provisions governing: wages subject to garnishment; the homestead exemption from judgments; and personal property exempt from judgments. (5) Amends the Interest Act to provide that consumer debt judgments of $25,000 or less shall draw interest at a rate of 2% per annum. House Bill 281 was just introduced. 

View Full Text of Legislation

House Bill 252

Topic: 
Human Rights Act

(Guzzardi, D-Chicago) amends the Illinois Human Rights Act to provide that that "employer" includes any person employing one (instead of 15) or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation. Provides that "employer" does not include any place of worship with respect to the employment of individuals of a particular religion to perform work connected with the carrying on by the place of worship of its activities. House Bill 252 was just introduced. 

View Full Text of Legislation

BankDirect Capital Finance, LLC v. Capital Premium Financing, Inc.

Federal 7th Circuit Court
BankDirect Capital Finance, LLC v. Capital Premium Financing, Inc.
Civil Court
Injunction
Citation
Case Number: 
No. 18-1054
Decision Date: 
January 9, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Vacated and remanded

In action alleging that defendant violated terms of contract requiring defendant to sell its business to plaintiff once plaintiff exercised option to purchase said business as part of same contract requiring plaintiff to purchase loans that defendant made to third parties and to pay defendant to service said loans, Dist. Ct. erred in granting defendant’s request for entry of preliminary injunction to require plaintiff to continue to purchase defendant’s loans and to pay defendant for servicing said loans until Dist. Ct. resolved sale of business issue. Said injunction improperly failed to limit duration of injunction to June 1, 2018 drop dead date contained in contract, after which neither party would have any obligation to perform under terms of contract, and Dist. Ct. otherwise failed to enter instant injunction as separate document as required under Rule 65(d)(1)(C). Also, Dist. Ct. failed to require that defendant post bond to cover any losses plaintiff might sustain should there be future finding that it was wrongfully enjoined. As such, remand was required for determination as to whether plaintiff sustained any damages incurred after June 1, 2018 drop dead date by reason of instant injunction and to determine whether either side owes damages to other for any breach of contract calling for sale of defendant's business.