Commercial Banking, Collections, and Bankruptcy

Caudill v. Keller Williams Realty, Inc.

Federal 7th Circuit Court
Caudill v. Keller Williams Realty, Inc.
Civil Court
Contract
Citation
Case Number: 
No. 15-3313
Decision Date: 
July 6, 2016
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in entering judgment in favor of defendant in action seeking to enforce confidentiality clause in settlement agreement that prohibited each party from disclosing terms of settlement and set $10,000 as liquidated damage figure for each breach of confidentiality clause. While plaintiff claimed that she was entitled to $20 million in said damages, where defendant disclosed in its Franchise Disclosure Document amount of settlement and other details of plaintiff’s underlying lawsuit against defendant to 2,000 potential buyers of its franchise, Dist. Ct. could properly find that instant liquidated damage clause was unenforceable under Texas law, where there was no showing that instant disclosure had caused $20 million in loss to plaintiff or that damages to plaintiff were anywhere near average of $10,000 per unauthorized disclosure.

Senate Bill 2261

Topic: 
Statewide Relocation Towing Licensure Commission

(Haine, D-Alton; Zalewski, D-Chicago) clarifies that a county or municipality may assess an administrative fee for impounding vehicles only for violations listed in the current Vehicle Code. If the administrative hearing officer finds that a county or municipality exceeded its authority to impound a vehicle under the Vehicle Code, the county or municipality is liable to the car’s owner for the storage fees and reasonable attorney’s fees. Makes other changes. Passed both chambers.

 

 

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House Bill 4633

Topic: 
Unclaimed Life Insurance Benefits Act

(Martwick, D-Chicago; Haine, D-Alton) requires insurers to periodically use the federal Death Master File to determine if a policyholder has died but the death benefits have not been made. If a match is found but the beneficiaries do not file a claim within 120 days, the insurer is required to make a good-faith effort to locate them. This Act will apply to all policies, annuity contracts, and retained asset accounts in force on after January 1, 2017. Passed both chambers. 

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House Bill 4633

Topic: 
Unclaimed Life Insurance Benefits

House Bill 4633 (Martwick, D-Chicago; Haine, D-Alton) requires insurers to periodically use the federal Death Master File to determine if a policyholder has died but the death benefits have not been made. If a match is found but the beneficiaries do not file a claim within 120 days, the insurer is required to make a good-faith effort to locate them. This Act will apply to all policies, annuity contracts, and retained asset accounts in force on after January 1, 2017. Passed both chambers. 

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Affiliated Heath Group, Ltd v. Devon Bank

Affiliated Heath Group, Ltd v. Devon Bank
Illinois Appellate Court
Civil Court
Uniform Commercial Code
Citation
Case Number: 
2016 IL App (1st) 152685
Decision Date: 
Thursday, June 30, 2016
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Affirmed.
Justice: 
HARRIS

Plaintiff physicians allege that 2 of their former employees from their billing department embezzled millions of dollars in funds from them, and created sham entities with similar names then opened accounts at 2 banks. Court properly found that Defendants-Appelless' (2 health insurance companies whose insureds received medical services from Plaintiffs) obligations to two plaintiff physicians were discharged. There are not set of facts which Plaintiffs can allege that would entitled them to recover against Defendants under Illinois' Uniform Commercial Code. Section 3-414 of UCC extinguished insurers' obligation to pay when the checks were accepted at the depositing banks. Thus, insurers' obligation to pay for medical services performed by Plaintiffs was discharged pursuant to Section 3-414(c) of UCC. The checks were not dishonored and thus Section 3-414(b) is not triggered.(CUNNINGHAM and CONNORS, concurring.)

Senate Bill 2741

Topic: 
Common Interest Community Association Act

(Haine, D-Alton; Beiser, D-Alton) allows an association to correct an error, omission, or inconsistency in the community instruments of the association by an amendment adopted by vote of two-thirds of the board of directors without a membership vote. This applies to correct an omission, error, or inconsistency so that the community instruments conform to the Act or to another applicable law. Passed both chambers. 

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Senate Bill 2359

Topic: 
Condominium Property Act

(Mulroe, D-Chicago; Martwick, D-Chicago) allows a board of managers to assign the right of the association to future income from common expenses or other sources and to mortgage or pledge substantially all of the remaining assets of the association by a majority vote of the entire board. Passed both chambers.

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Senate Bill 2358

Topic: 
Common Interest Community Association Act and the Condominium Property Act

(Mulroe, D-Chicago; Martwick, D-Chicago) provides that any assignment of a developer’s interest in the property is not effective until the successor obtains the assignment in writing and records it. Passed both chambers.

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Senate Bill 2354

Topic: 
Common Interest Community Association Act and the Condominium Property Act

(Haine, D-Alton; Martwick, D-Chicago) allows a board to close any portion of a noticed meeting or meet separately from a noticed meeting to do the following: (1) “Discuss” instead of “consider” appointment, employment, engagement, or dismissal of an employee, independent contractor, agent, or other provider of goods and services. (2) Interview a potential employee, independent contractor, agent, or other provider of goods and services. (3) Consult with the association’s legal counsel. Passed both chambers. 

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Nationwide Advantage Mortgage Co. v. GSF Mortgage Corp.

Federal 7th Circuit Court
Nationwide Advantage Mortgage Co. v. GSF Mortgage Corp.
Civil Court
Unjust Enrichment
Citation
Case Number: 
No. 15-3361
Decision Date: 
June 27, 2016
Federal District: 
E. D. Wisc.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendant’s motion for summary judgment in action alleging that defendant breached agreement that called for defendant to pay Fannie Mae $15 for each time it used Fannie Mae’s Desktop Originator System and also required plaintiff, as defendant’s sponsoring lender, to pay Fannie Mae between $20 and $28 for each time defendant used said System, where record showed that over three-year period after plaintiff had terminated all relationships with defendant, Fannie Mae billed plaintiff and plaintiff paid $278,000 in fees for defendant’s use of said System. Plaintiff could not recover said fees from defendant under either breach of contract or unjust enrichment theory since: (1) record showed that defendant had no reason to think during relevant three-year period that plaintiff was being held liable for instant fees generated by its use of System; and (2) plaintiff had no excuse for failing to inform Fannie Mae at beginning of instant three-year period that it was no longer sponsoring defendant’s use of System.