Dead Taxpayer Wins. The U.S. lost its claim for back taxes from a deceased taxpayer's insolvent estate, because it failed to file proper notice of its tax lien. The U.S. Supreme Court gave effect to a 1996 law requiring proper notice, overruling a 1797 law giving the government a first priority, even for secret liens. U.S. vs. Romani, No. 96-1613.
Legal Holiday No Excuse for Non-Performance of Stock Warrant. A stock warrant governed by Delaware law set a deadline for performance that fell on Good Friday - a legal holiday in Delaware. Nevertheless, performance was not excused. Construing the only case law on the issue, the Seventh Circuit ruled that a 1922 Delaware decision excusing non-performance on a Sunday could not be extended to this situation, given the amount of commercial activity now commonly undertaken on Sundays. Swiss Bank Corp. v. Dresser Industries, Inc., 1998 WL 146414 (C.A.7-Ill.)
Punitive Damages Claim Survives Assignment by Corporation to Former Shareholders. Claim of former Shareholders for punitive damages in conjunction with common law fraud claim assigned to them by corporation did not violate public policy. Kleinwort Benson North America, Inc. vs. Quantum Financial Services, Inc., 181 Ill.2d 214, 692 N.E.2d 269, 229 Ill.Dec. 496, 1998.
Automaker's Actions Not in Violation of Motor Vehicle Franchise Act. Manufacturer's acts of approving sale of financially troubled dealership to Plaintiff, then denying loan to Plaintiff and subsequently denying approval of proposed sale of dealership by Plaintiff did not violate Act. Guardino vs. Chrysler Corporation, Nos. 1-96-3156, 1-97-0123, 691 N.E.2d 787, 229 Ill.Dec. 314 ( 1st Dist., 1998)
Subordination of Promissory Note Results in Transfer of Note. Payee's endorsement of promissory note, pursuant to subordination agreement, "for collateral purposes only" did more than subordinate note, and actually transferred it to bank so that payee no longer had the right to enforce note. Strosberg vs. Brauvin Realty Services, Inc.,No. 1-95-3601, 691 N.E.2d 834, 229 Ill.Dec. 361 (1st Dist. 1998) .
Secured Creditor's Violation of UCC Does Not Invalidate Deficiency Judgment.. Even though secured creditors sold collateral to themselves at private sale, in violation of U.C.C., creditors not estopped from obtaining deficiency judgment. In addition, Creditors did not agree to retain collateral of value of $9,067.07 in full satisfaction of debt in excess of $58,000. Munao vs. Lagattuta, No. 1-96-1990, 691 N.E.2d 818, 229 Ill.Dec. 345 (1st Dist. 1998)
Settlement Discussions Admissible Within Discretion of Court. Although settlement discussions and negotiations generally inadmissible, at least as to liability, where offered for some other purpose, such as bias of witness, admissions of such settlement discussions lie within sound discretion of court. Stathis vs. Geldermann, Inc., No. 1-96-0971, 692 N.E.2d 798, 229 Ill.Dec. 809 (1st Dist. 1998)
CBOT Reference Letter for Barred Former Trader Not Actionable. Although CBOT's letter of reference to German company on behalf of barred former trader said that he was "an intelligent, industrious and innovative young man," and did not mention that he had been barred from trading for two years, the letter did not constitute misrepresentation. The letter contained no false statement of material fact, and writer had no duty to reveal adverse information. Neptuno Treuhand-Und Verwaltungs-gesellschaft MBH, et a., vs. Patrick H. Arbor and Chicago Board of Trade, 1-95-1864, 1998.
On the Governor's Desk - Amendment to Franchise Disclosure Act. Within the next 60 days, Governor Edgar is expected to sign the bill amending the Franchise Disclosure Act, which removes several of the current law's requirements for the benefit of Franchisees. Those supporting the Act contend that the current law is anti-business, and that these changes will bring Illinois in line with most other states. Franchisors will like the new law. Illinois House Bill 3463.
On the Governor's Desk - International Commercial Arbitration Act. House Bill 2369, co-sponsored by Rep. Elizabeth Coulson, R-Glenview, and Sen. Carl E. Hawkinson, R-Galesburg, would create the named law, establishing procedures to govern the arbitration of commercial disputes when the subject matter relates to more than one country. The law would be subject to the terms of any agreements in force between the U.S. and the other country, and also to applicable state law.