E-Mail Communications With Clients. The Illinois State Bar Association has concluded that e-mail sent from lawyer to client over commercial services or networks carries a sufficient expectation of privacy to satisfy a lawyer's duty to maintain confidentiality, without encryption, except for particularly sensitive matters. This opinion complies with those of the State Bar Associations of several other states. Opinion 96-10, Committee on Professional Ethics.
Parent Companies and Their Offspring - Shared Ownership. Liquor license could not be transferred from Jewel to Osco under "shared ownership" exception to liquor license moratorium, even though both Jewel and Osco are wholly owned subsidiaries of American Drug Stores, Inc. Daley vs. American Drug Stores, Inc., 1998 Ill.App. LEXIS 90, 1998 WL 81842 (1st Dist., Feb. 26, 1998)
>Parent Companies and Their Offspring - Common Ownership. Department Store's parent corporation which sent a collection letter to the holders of department store's credit cards was not a "debt collector" under the Fair Debt Collection Practices Act. The Common Ownership exception applied. Friedman vs. May Dept. Stores Co., 1998 WL 21875 (N.D. Ill.)
Assignees of Limited Partners Have No Right to Review Partnership Books. Under Revised Uniform Limited Partnership Act, assignees of Limited Partners had no right to review Partnership books and records. Partnership Agreement provided that assignees would become substitute limited partners only upon consent of majority of partners. Baldwin vs. Wolff, No. 1-96-3697, 690 N.E.2d 632, 228 Ill.Dec. 873 ( 1st Dist., 1998)
75,000 Mile or 72 Month Vehicle Service Contract Not a Warranty. Vehicle Service Contract promising to repair, replace or reimburse Purchaser for authorized reasonable costs of parts and labor was service contract, and not express or implied warranty under Magnuson-Moss -Federal Trade Commission Improvement Act. Nibert vs. Al Piemonte Ford Sales, Inc.,No. 2-96-1522, 689 N.E.2d 1196, 228 Ill.Dec. 775 (Ill.App.2nd Dist. 1998) .
Joint Venturer Collects But Doesn't Pay. Member of Joint Venture was entitled to capital expense contribution reimbursement even though member did not share equally in expenses of joint venture. Reimbursement not conditioned upon equal sharing of expenses under Joint Venture Agreement . River Forest State Bank vs. Joyce Enterprises, Inc., No. 1-96-3335, 689 N.E.2d 163, 228 Ill.Dec. 291 (Ill.App. 1st Dist. 1997)
Pledge of Stock Valid, Although Required Notice Not Given. Agreement in which current shareholder of company pledged stock to former shareholder as collateral for loan was valid, despite company's stock restriction agreement requiring that shareholders given written notice of stock pledge to other shareholders and company. Stock restriction agreement did not require company's consent. Guice vs. Sentinel Technologies, Inc., No. 1-96-2096, 689 N.E.2d 355, 228 Ill.Dec. 483 (Ill.App. 1st Dist. 1997)
CGL Policy Did Not Cover Theft of Trade Secrets. Commercial General Liability (CGL) Policy did not cover computer software developer's alleged liability for misappropriation of trade secrets under coverage for "misappropriation of advertising ideas or style of doing business," since advertising of resulting software occurred long after alleged theft. Winklevoss Consultants, Inc. vs. Federal Insurance Co., 1998 WL 32174 (N.D. Ill.)
Good Faith Defeats Claim For Damages Under Illinois Interest Act. Under statutory good faith defense, lender's assignees not liable for charging points on loans in excess of those authorized by Illinois Interest Act. Lender charged such points only after seeking and receiving opinion from legal counsel for Illinois' Department of Financial Institutions, which interpreted statute as removing such limitations. Jackson vs. Resolution GGF Oy, 1998 WL 60891 (C.A. 7-Ill.)
Did You Know? Pending State Senate Bill 1544 would further complicate the already complex Mechanics' Lien Act by attempting to provide contractors and owners with protection from "secret liens," filed by subcontractors and others. In addition, it may also harm the business interests of commercial suppliers and lumberyards.