Commercial Banking, Collections, and Bankruptcy

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. 

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. 

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. 

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

Federal 7th Circuit Court
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.

House Bill 29

Topic: 
Condos and common interest community associations

(Thapedi, D-Chicago) amends the Common Interest Community Association Act to limit the concurrent exercise by units of local government of powers and functions exercised by the State with respect to amendments to the community instruments and accounting practices.

It also amends the Condominium Property Act to limit the concurrent exercise by units of local government of powers and functions exercised by the State with respect to an association’s budgeting practices, sale of property, notice requirements, contracts with board members, voting procedures, property-improvement procedures, accounting practices, collection and sharing of records, amendment to the condominium instruments, and subdivision or combination of units.

Both parts of the bill specifically reference Public Act 100-292. House Bill 29 was just introduced.

House Bill 39

Topic: 
Bill of particulars

(Thapedi, D-Chicago) amends the Code of Civil Procedure to provide that if the pleader does not file and serve a bill of particulars within 28 days of the demand, or if the bill of particulars delivered is insufficient, the court may, among other things, award attorney’s fees and costs. Provides a 28-day deadline for moving that a demand for a bill of particulars be denied or modified. House Bill 39 was just introduced.

Shapich v. CIBC Bank USA

Illinois Appellate Court
Civil Court
Contracts
Citation
Case Number: 
2018 IL App (1st) 172601
Decision Date: 
Friday, December 14, 2018
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div,
Holding: 
Affirmed in part and reversed in part; remanded.
Justice: 
HOFFMAN

First Subordination Agreement, drafted by Bank and which Bank required Plaintiff to sign, is ambiguous as to whether Plaintiff's manufacturing company was permitted to pay Plaintiff on the Note, and thus it cannot be determined whether a breach occurred. Thus, court erred in entering summary judgment on Plaintiff's claim for tortious interference with a contractual relationship against the Bank. Court proply denied Bank's motion for summary judgment. (HALL and LAMPKIN, concurring.)