Commercial Banking, Collections, and Bankruptcy

Senate Bill 2784

Topic: 
Lake County judicial facilities fee

(Link, D-Gurnee) amends the existing statute to allow Lake County to impose a "judicial facilities fee" not to exceed $30 against all defendants in traffic and criminal cases and against all civil litigants. The fee would be used to construct new judicial facilities. Only Will and Kane counties have this authority under existing law. Scheduled for hearing in Senate Judiciary Committee. 

Senate Bill 2503

Topic: 
Judicial facilities fee

(Manar, D-Bunker Hill) allows all county boards to impose by ordinance a “judicial facilities fee” on all defendants convicted in traffic and criminal cases and all civil litigants. The fee may not be more than $30. It also expands the use of this fee from defraying new construction to include renovating existing judicial facilities. Under current law, only Will and Kane counties have authority to do impose this fee for new construction. Scheduled for hearing Tuesday in Senate Judiciary Committee. 

Senate Bill 2842

Topic: 
Trusts and Trustees Act

(Silverstein, D-Chicago) seeks to reverse the holding of the Mendelson case (2015 IL App (2d) 150084). Senate Bill 2842 provides that the transfer of property to a trust requires a transfer of legal title to the trustee evidenced by a written instrument of conveyance and acceptance by the trustee. Provides that for any interest in real property to become trust property in a trust of which any transferor is a trustee, the instrument of conveyance shall additionally be recorded in the appropriate real property records. It is shceduled for hearing in Senate Judiciary Committee tomorrow. 

Senate Bill 3303

(Rose, R-Mahomet) amends the Code of Civil Procedure to provide that if the respondent fails to appear on the date that the court conducts an inquiry related to the discharge of a bond, the court may proceed with the inquiry and resolve any questions that arise. Referred to the Committee on Assignments. 

United Central Bank v. Davenport Estate, LLC

Federal 7th Circuit Court
Civil Court
Financial Institutions Reform
Recovery and Enforcement Act
Citation
Case Number: 
No. 15-2406
Decision Date: 
March 4, 2016
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting plaintiff-bank’s motion to dismiss defendants-investors’ counterclaim (in foreclosure action) alleging that plaintiff breached contract to loan them $700,000 for purposes of making repairs to properties owned by defendants. While said money was placed in escrow and plaintiff had failed to release said money after defendants had requested said funds, defendants’ counterclaim could not proceed since parties had not entered into written escrow agreement covering said funds as required under section 1823(e) of FIRREA. Fact that written references to escrow agreement were contained in closing documents involving instant properties did not require different result. Ct. also rejected defendants’ claim that plaintiff’s failure to release said funds amounted to conversion of said funds.

Schaumburg Bank & Trust v. Alsterda

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 15-1894
Decision Date: 
March 4, 2016
Federal District: 
N.D. Ill., E. Div.
Holding: 
Appeal dismissed

Ct. of Appeals dismissed for lack of jurisdiction creditor’s appeal of Dist. Ct.’s order finding that creditor had not been assigned right to pursue state court claim for fraudulent transfer of debtor’s asset and that said claim belonged to bankruptcy estate, where Ct. of Appeals found that no final judgment or appealable order had been entered by Dist. Ct. Record showed that Dist. Ct. order contemplated future hearing to determine creditor’s security interest in transferred asset, and instant appeal was filed prior to said hearing. As such, Ct. distinguished between resolution of “discrete dispute,” which is appealable, from resolution of “discrete issue,” which is not appealable, and found that Dist. Ct.’s order was more properly classified as discrete issue that would not be appealable until creditor’s actual interest in asset had been determined.

General Auto Service Station, LLC v. Garrett

Illinois Appellate Court
Civil Court
Laches
Citation
Case Number: 
2016 IL App (1st) 151924
Decision Date: 
Wednesday, March 2, 2016
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Reversed and remanded.
Justice: 
MASON

Breach of contract action from decedent's breach of his personal guaranty of a commercial lease.  Lessor prevailed in eviction action, but did not take any action to collect judgment or enforce decedent's guaranty until 3 years later; Decedent died shortly after breach of contract action was filed. Court erred in granting summary judgment in favor of decedent's widow based on doctrine of laches.  Laches is an equitable doctrine that bars action where unreasonable delay in bringing suit causes prejudice to opposing party, who has taken a course of action different from what it otherwise would have taken. Laches does not apply to claim sounding wholly in law. Decedent's death does not give rise to a defense available to widow that decedent himself could not have asserted. Affidavit of Defendant's vice-president as to terms of lease was improperly excluded under Dead Man's Act, as affiant was neither an adverse party nor interested in the action on the guaranty.(LAVIN and PUCINSKI, concurring.)

White v. Keely

Federal 7th Circuit Court
Civil Court
False Entry Statute
Citation
Case Number: 
No. 15-1922
Decision Date: 
February 29, 2016
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed

Dist. Ct. did not err in dismissing for failure to state cause of action plaintiff’s complaint alleging that defendants violated False Entry Statute by falsifying official bank reports in order to cover up unauthorized transfers made from plaintiff’s bank accounts in defendants’ bank. Record showed that plaintiff had previously been convicted of check fraud arising from plaintiff’s $500,000 check that was deposited into one of his accounts at defendants’ bank, where said check lacked sufficient funds, and while plaintiff alleged that defendants transferred certain funds without his authorization which resulted in his prosecution on check fraud count, plaintiff failed to allege that he detrimentally relied upon said reports or that alleged unauthorized transfer was caused by any false bank reports, especially where said reports were generated only after money transfers had taken place. Ct. further found that any claim that defendants’ action caused plaintiff to be prosecuted for check fraud were without merit, since plaintiff had been prosecuted for his own conduct in writing $500,000 check from account that he knew did not contain such funds. Ct. further found that plaintiff filed frivolous appeal that required future award of sanctions.

House Bill 4528

Topic: 
Tenants Radon Protection Act

(McAsey, D-Lockport) provides that before a lease is signed, a landlord must provide each tenant any records pertaining to radon concentrations within the dwelling unit that indicate a radon hazard. If a tenant performs a radon test, the tenant must provide to the landlord the test result within 10 days after receiving the result. Before a lease is signed a landlord must furnish each prospective tenant with a prescribed radon hazard disclosure form. Nothing implies an obligation on a landlord or tenant to conduct any radon testing. Provides that a lease may be terminated under specified circumstances involving radon hazard. Referred to House Rules Committee. 

House Bill 4648

Topic: 
Revised Uniform Fiduciary Access to Digital Assets Act.

(Welch, D-Westchester) provides procedures and requirements for the access and control by guardians, executors, agents, and other fiduciaries of the digital assets of persons who are deceased, under a legal disability, or subject to the terms of a trust. Referred to House Rules Committee.