Construction Law

Construction Law

A.G. Cullen Construction, Inc. v. Burnham Partners, LLC

Illinois Appellate Court
Civil Court
Fraudulent Transfer Act
Citation
Case Number: 
2015 IL App (1st) 122538
Decision Date: 
Wednesday, March 11, 2015
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Reversed and remanded with directions.
Justice: 
HYMAN
LLC hired Plaintiff construction company to build warehouse and distribution facility in Pennsylvania. LLC stopped paying Plaintiff upon dispute near project completion, and arbitrator entered award for Plaintiff. Prior to entry of award, co-Defendant LLC began to wind down LLC, liquidating all its assets.Sufficient and significant number of "badges" of fraud were present to give rise to presumption of fraud under Uniform Fraudulent Tranfser Act (UFTA), as co-Defendant LLC's owner knew of threat of suit and judgement at time he made transfers of assets.Defendants presented no unbiased evidence that transfers was in exchange for reasonably equivalent value. Court erred in entering judgment in favor of co-Defendants on claims to pierce corporate veil.(LAVIN and MASON, concurring.)

House Bill 3089

Topic: 
Citizen Participation Act
(Breen, R-Lombard) makes the following changes to the Act: (1) Amends the public policy provision of the Act to make as one of its intentions the ability to identify and provide a speedy resolution of meritless and retaliatory and provide damages in the form of attorney’s fees and costs to prevailing movants. (2) Provides that a claim is meritless if it lacks an essential element of the claim or fails against a reasonably foreseeable affirmative defense to that claim. (3) Provides that a plaintiff's claim is presumed to be retaliatory if the alleged basis for the claim is an act in furtherance of the constitutional rights to petition, speech, association, and participation in government. (4) Provides that a motion under the Act may be made as a motion to dismiss or as a motion for summary judgment or joined with other motions. (5) Provides that “attorney’s fees and costs” include reasonable trial and appellate attorney’s fees and costs incurred in connection with a motion under the Act, including, but not limited to, fees and costs for discovery that relates to such a motion. Scheduled for hearing next Wednesday in House Judiciary Committee.

Senate Bill 1447

Topic: 
Administrative Review Law
(Kotowski, D-Park Ridge) provides that “parties of record” does not include a private citizen who was not acting in an official capacity or whose participation in the agency proceedings was limited to his or her attendance or testimony at a public hearing. Scheduled for hearing next Tuesday in Senate Judiciary Committee.

Senate Bill 1296

Topic: 
Insured’s Independent Counsel Act
(Mulroe, D-Chicago) applies if an insurer has a duty to defend an insured under a policy of insurance and a significant and actual conflict of interest arises that imposes a duty on the insurer to provide independent counsel to the insured. It requires the insurer to provide independent counsel to the insured unless the insured waives the right to independent counsel in writing. Defines the phrase “significant and actual conflict of interest” to exclude these circumstances: (1) claims or facts in a civil action for which the insurer denies coverage; (2) the mere issuance of a reservation of rights letter by the insurer; (3) a claim of damages in excess of the policy limits; (4) a claim of punitive damages; or (5) any other conflict that is not significant and actual. Scheduled for hearing next Tuesday in Senate Judiciary Committee.

House Bill 1319

Topic: 
The Security Deposit Interest Act
(Lang, D-Skokie) provides that the requirement that a lessor pay accumulated interest within 30 days after the end of each 12-month rental period applies to interest that has accumulated to an amount of $5 or more. Requires that the lessor pay all interest that has accumulated and remains unpaid, regardless of the amount, upon termination of the tenancy. Assigned to House Judiciary Committee (Civil).

Senate Bill 1248

Topic: 
Interest on judgments and supplementary proceedings
(Biss, D-Skokie) amends the Code of Civil Procedure on judgments and supplementary proceedings to do several things. (1) Repeals the 9% interest on judgments and replaces it with a maximum rate equal to the weekly average one-year constant maturity treasury yield for the preceding calendar year. It doesn’t amend the 6% interest rate for units of local governments. (2) Reduces what can be deducted from a debtor’s wages from 15% to 10% of gross weekly wages or the amount by which the disposable earnings for a week exceed the total of 50 (now, 45) times the federal minimum wage or the Illinois minimum hourly wage or the local minimum hourly wage law to which the debtor's employer is subject, whichever is greater. (3) Makes exempt from execution moneys held in education expense accounts and similar education savings accounts, such as ABLE accounts and 529 funds. (4) Makes exempt from execution an amount not to exceed $6,000, held by the debtor in the form of cash, a bank account, accrued interest, dividends, the loan or redemption value of a life insurance policy, or other account. A financial institution may not freeze the debtor’s access to turn over to the judgment creditor the amount in the debtor’s account that is $6,000 less, but shall inform the court and the judgment creditor of the exempt amount. The judgment creditor may, upon notice to the financial institution and the debtor, petition the court for a hearing to establish that the funds in the account are not exempt. (5) Increases the exempted amounts in Section 12-1001 annually per the Consumer Price Index if there is a 10% increase in the CPI for the preceding year. Just introduced.

Senate Bill 45

Topic: 
The Uniform Interstate Depositions and Discovery Act
(Barickman, R-Bloomington-Normal) intends to simplify the procedures for an Illinois person who is subpoenaed for discovery purposes from an out-of-state court. The Act creates establishes a simple, clerical procedure under which a subpoena from an out-of-state court can be used to issue a discovery subpoena in Illinois. Since its introduction in 2007, 33 states and the District of Columbia have adopted this Act, including our neighboring states of Kentucky, Indiana, Michigan, and Iowa. Under the Act, the out-of-state subpoena will be presented to an Illinois circuit court clerk. The clerk will then issue an Illinois subpoena that incorporates the terms of the out-of-state subpoena. The Act specifically states that a request for the issuance of a subpoena doesn’t constitute an appearance in an Illinois court. Motions brought to enforce, quash, or modify an out-of-state subpoena or for protective orders would be brought in Illinois and governed by Illinois’ discovery laws. The Act specifically states that the relevant Illinois Supreme Court Rules and statutes apply to this Act, such as Rules 204 and 237 and 735 ILCS 5/2-1101.

Senate Bill 804

Topic: 
Court-services fee
(Haine, D-Alton) lifts the ceiling for the court-services fee that is now at $25. It can be increased to more than $25 if accompanied by an acceptable cost study per statute. The court-services fee is dedicated to the the county sheriff for court security and applies to civil pleadings and criminal convictions. Just introduced and referred to the Senate Committee on Assignments.

House Bill 160

Topic: 
Forcible entry and detainer
(Thapedi, D-Chicago) provides that the owner may recover rent or a fair and reasonable satisfaction for use and occupation if the lands or tenements are held by a tenant who is a defendant in an eviction or possession action who continues to maintain possession of the land throughout the duration of the pending eviction or possession action. If an order for use and occupancy is granted to the plaintiff and the defendant violates the order by willfully failing to pay the ordered amount, it requires the court to set a firm trial date for the pending eviction possession action no less than seven days from the date that this order is entered. Makes the defendant responsible for the plaintiff’s costs and attorney’s fees. If the defendant is successful in the underlying eviction or possession action, the defendant is entitled to the return of any use and occupancy payments made to the plaintiff on his or her behalf plus statutory interest. Exempts property subject to the Condominium Property Act. To be heard in House Judiciary Committee next week.

Senate Bill 735

Topic: 
Mortgage foreclosure
(Mulroe, D-Chicago) amends provisions outlining under which circumstances the court is not required to appoint a special representative for a deceased mortgagor for the purpose of defending the action. It adds situations in which there is a: (i) beneficiary under a transfer on death instrument; (ii) person or entity that was conveyed title to the property by the deceased mortgagor prior to death; (iii) person or entity that was conveyed title to the property under the administration of the deceased's estate; or (iv) trust that was conveyed title to the property. Just introduced and referred to Senate Committee on Assignments.