Commercial Banking, Collections, and Bankruptcy

Senate Bill 1428

Topic: 
Cook County associate judges

(Jones, D-Chicago) provides that the Cook County associate judgeships existing on the effective date are converted into resident judgeships. Requires that the Supreme Court allot the resident judgeships for election from the 15 subcircuits. Referred to the Committee on Assignments. 

ARC Welding Supply Co, Inc. v. American Welding & Gas, Inc.

Federal 7th Circuit Court
Civil Court
Contracts
Citation
Case Number: 
No. 18-1546
Decision Date: 
February 14, 2019
Federal District: 
S.D. Ind., Evansville Div.
Holding: 
Affirmed

Dist. Ct. did not err in entering $33,765.52 judgment in favor of defendant on its counterclaim, alleging that plaintiff breached contract calling for defendant’s purchase of 6,500 cylinders from plaintiff, where plaintiff could only tender 4,663 cylinders to defendant. Contract called for $150,000 in withheld purchase finds for possibility that plaintiff could not produce 6,500 cylinders, and Dist. Ct. could properly find that plaintiff was not entitled to any of withheld funds, since: (1) actual audit indicated that plaintiff possessed only 4,663 cylinders; and (2) record showed that plaintiff would not be entitled to any of withheld funds if less than 5,300 cylinders were delivered to defendant. Moreover, defendant was entitled to all of $150,000 in withheld funds, as well as additional $33,765.52, which represented amount of cylinders that fell short of 5,300 threshold. Ct. rejected plaintiff’s contention that: (1) it was entitled to entire $150,000 in withheld funds because audit took longer to complete than deadline set forth in contract; and (2) defendant was required to conduct physical audit of all cylinders.

Rhone v. Medical Business Bureau, LLC

Federal 7th Circuit Court
Civil Court
Fair Debt Collection Practices Act
Citation
Case Number: 
No. 17-3408
Decision Date: 
February 7, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Reversed

Dist. Ct. erred in finding that defendant had violated section 1692e(2)(A) of Fair Debt Collection Practices Act (FDCPA) when defendant misrepresented “character” of plaintiff’s debt by reporting to credit bureau that plaintiff had nine unpaid bills of $60 each to same creditor, rather than single unpaid bill of $540. There was no violation, where: (1) “character” of debt refers only to kind of obligation; and (2) number of transactions between debtor and single merchant does not affect genesis, nature or priority of said debt. Moreover, debt collector accurately informed credit bureau that debtor incurred her debt over nine transactions, and, if plaintiff’s argument was correct, report of single $540 debt to credit bureau, as advocated by plaintiff, would be misleading and also violate FDCPA, since plaintiff did not owe $540 for any transaction.

Senate Bill 181

Topic: 
Post-judgment changes

(Mulroe, D-Chicago) makes the following changes to post-judgment 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 to discover assets or income of the debtor not exempt from the enforcement of the judgment, a deduction order or garnishment, and of compelling the application of non-exempt assets or income discovered toward the payment of the amount due under the judgment. (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 upon a party in default. It has been referred to the Committee on  Assignments to be referred to a substantive committee.

Senate Bill 169

Topic: 
Foreclosure

(Mulroe, D-Chicago) amends the Code of Civil Procedure to provide that the failure to send a copy of the notice of foreclosure to the alderman or to file an affidavit as required results in a fine of $500 payable to the ward in which the property is located. Under current law, it results in the dismissal without prejudice of the complaint or counterclaim on a motion of a party or the court. It also deletes language regarding the requirements a party must comply with if the party refiles the complaint or counterclaim. Senate Bill 169 has been referred to the Committee on Assignments before being assigned to a substantive committee. 
 

Senate Bill 220

Topic: 
Condominium Property Act

(Murphy, D-Des Plaines) must first provide the unit owner a minimum of 20 days' written notice and an opportunity to be heard before the board may levy a fine. It also requires that the written notice must be made in compliance with the Act. The notice and opportunity to be heard requirements apply only to the ability to levy fines, and nothing contained in the new provisions limits or restricts the ability of the board to pursue or enforce the rights of the association. Provides that the association has no authority to report adverse information to a credit reporting agency or initiate collection proceedings against a unit owner for unpaid fines unless the board of managers has first complied with the notice and hearing requirements. Senate Bill 220 has been referred to the Committee on Assignments before being sent to a substantive Senate committee. 

Accettura v. Vacationland, Inc.

Illinois Supreme Court PLAs
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. 

In re: Calvert

Federal 7th Circuit Court
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.