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Articles Posted in Business Litigation

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Illinois Freedom to Work Act Makes Some Noncompete Contracts Illegal

A new law in Illinois prohibits employers from entering into noncompete contracts with employees who earn $13 per hour or less. The Illinois Freedom to Work Act (Public Act 099-0860) became effective on Jan. 1, 2017. The law makes it illegal for an Illinois employer to enter into a “covenant…

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U.S. Court of Appeals Dismisses False Claims Act Complaint Ruling

In a federal court of appeals, the Federal Rule of Civil Procedure 9(b) was addressed by the Seventh Circuit Court of Appeals in Chicago regarding the specificity required in complaints. On Sept. 1, 2016, the U.S. Court of Appeals for the Seventh Circuit in Chicago affirmed dismissal of the amended…

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Illinois Appellate Court Reverses Trial Judge Who Denied Filing a Second Amended Complaint

The 1st District Appellate Court has reversed in part, vacated in part and remanded a decision by a Cook County judge in a case involving the use of trust money and investments. Arie Zweig was the trustee of the Arie Zweig Self Declaration of Trust dated June 28, 1990. He…

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Guarantor’s Obligations Are Discharged When the Principal Obligor is Released Because of the Running of the Statute of Limitations

Generally the law in Illinois states that a guarantor is entitled to assert the same defenses that would be available to the principal obligor. W.W. Merck White Lead Co. v. McGahey, 159 Ill.App. 418 (1st Dist. 1911). “Under Illinois law, ‘the liability of a guarantor is limited by and is…

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Illinois Appellate Court Holds that a Home Listed as Part of a Trust Belongs to the Trust Even if the Deed Was Not Formally Transferred

The Illinois Appellate Court has ruled in a dispute regarding who should inherit a home in Highland Park, Ill. Although a trust instrument stated the house was part of the trust, there was no separate, formal documentation showing that a transfer of the house had been placed in the trust.…

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Piercing the Corporate Veil is a Remedy Not a Cause of Action

The Illinois Appellate Court for the First District recently reviewed a case regarding the piercing of a corporate veil. Piercing the corporate veil is a practice in which a lawyer will prove that the corporation that would otherwise protect its shareowners from personal liability is really a façade or fiction…

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Illinois Appellate Court Reverses Summary Judgment in Case Where Contract Was Found to be Ambiguous

The Neck & Back Clinic in Chicago was providing physical rehabilitation services to patients. In 1998, the clinic signed a series of leases for exterior building wall space to advertise its services. The clinic leased that advertising space through a company called Travisign, operated by David Travis. The Neck &…

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U.S. Court of Appeals Affirms District Court’s Denial of Motion to Reopen Default Judgement in Hockey Player Injury Case

The U.S. Court of Appeals for the 7th Circuit in Chicago has affirmed a decision by the U.S. district judge who refused to reopen a default judgment. Kyler Moje, a hockey player on the Danville Dashers of the Federal Hockey League, lost an eye to high-sticking during a game against the…

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Illinois Appellate Court Denies Recovery in Unjust Enrichment Case

In 1986, Nina Willoughby operated a small business in which she sold retail clothes in a rented store. That year, she and Louis Fideli took out a $315,000 loan and purchased the store with other properties. The store property was kept solely in Fideli’s name. However, in 2003, Willoughby missed…

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Attorney’s Lien Must Be Served on the Defendant, Not Merely on the Defendant’s Attorneys

The Illinois Appellate Court has affirmed a Cook County trial judge’s order regarding the effect of an attorney’s lien notice sent to a defendant’s attorneys rather than the defendant directly. Randy Brown was the owner and operator of a Harold’s Chicken Shack in suburban Broadview, Ill., until Jan. 15, 2009.…

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