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Articles Posted in Commercial Litigation

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Cook County Circuit Court, Law Division, Launches Mandatory Arbitration Program

At the beginning of January 2015, the Law Division of the Circuit Court of Cook County, Ill., will begin its new mandatory arbitration program for certain cases. The program is targeted for cases that have value of less than $75,000. In order to file and hear a case in Law…

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Shareholder in Corporation Loses Employee Standing in Lawsuit for Disability Discrimination Under the ADA

Dr. Linda Bluestein was a shareholder in Central Wisconsin Anesthesiology S.C. and a member of its board of directors. After losing the vote that terminated her employment contract, Bluestein filed a lawsuit against the corporation for allegedly violating three statutes that protect “employees.” Those statutes were the Americans with Disabilities…

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U.S. Court of Appeals Finds Confidentiality Agreement for Design and Production of a Tablet Computer Unenforceable

An industrial design firm, nClosures, produced metal cases for tablet computers, such as the iPad. Ian LeBlanc designed a case for nClosures in early 2011 called the Rhino Elite. In May 2011, the co-founders of nClosures attended a tradeshow in Chicago to showcase the Rhino Elite prototypes. At the tradeshow,…

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Company’s Resistance to Produce Documents in Toxic Tort Case Was Determined to Be Not Privileged

In a case that involved thousands of toxic tort liability cases, the Illinois Appellate Court has ruled that an industrial manufacturer must turn over documents it alleged were privileged to a company indemnifying it. In March 1999, automotive systems manufacturer BorgWarner Inc. acquired Kuhlman Corp. and its subsidiaries, including Kuhlman…

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Illinois Appellate Court Clarifies Shareholder’s Right to Check Corporate Books and Records

The Illinois Business Corporation Act, Section 7.75, gives shareholders the right to inspect a company’s records, “but only for a proper purpose.” The Illinois Business Corporation Act was amended in 1984, requiring shareholders to make their demand in writing, “stating with particularity the records sought to be examined and the…

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Court Holds That Individual Shareholder Should Have Brought Lawsuit as a Derivative Action Rather Than as a Separate, Individual Claim

Daniel Nickell filed a lawsuit against the officers and directors of Engineer Support. He claimed it had improperly diverted financial benefits by backdating stock options, which decreased the value of the corporation for its shareholders. Nickell was a shareholder of Engineer Support Systems Inc. (ESSI). ESSI merged with DRS Technologies…

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U. S. Court of Appeals Affirms Summary Judgment Where Plaintiff Could Not Show That Equitable Tolling Applied and Plaintiff Missed the Filing Deadline by More Than Two Years

Levia Moultrie began working at Penn Aluminum in 1990. Over the next 20 years, Moultrie worked in different positions, including forklift operator, block operator, utility coiler and scrap chopper. In September 2008, Moultrie used his seniority to take on the job of forklift operator. The collective bargaining agreement between Moultrie’s…

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U.S. Court of Appeals Reverses Asbestos-Related Personal Injury Claims in Indemnification Case

Hennessy Industries was a car part manufacturer. It was sued frequently for asbestos-related personal injury claims. Hennessy sought insurance coverage for these claims from National Union Fire Insurance Co. The companies entered into a cost-sharing agreement in 2008. However, as the lawsuits and claims came in, Hennessy asked National Union…

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Illinois Appellate Court Finds that Failure to Perfect Subrogation Rights Does Not Allow for Equitable Tolling of the Statute of Limitations

The Illinois Appellate Court has answered a certified question that was brought to it from a circuit court judge. In this case, Michael McGrath owned a home designed and built by Patrick Plunkett Architectural Design Ltd. and insured by American Family Insurance Co. McGrath filed an insurance claim on Aug.…

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U.S. Court of Appeals Finds that Claims of an Individual Shareholder are Derivative to the Corporation

Fortunee Massuda was an investor in a group of Panda Express restaurants in Chicago. The restaurants were owned by a joint venture, RC Partnership, made up of Panda Express Inc. and Rezko Concessions Inc. Massuda invested $4 million in the joint venture in exchange for an ownership interest of 11%…

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