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Employees' Admission of Use of Company Courier Service Defeats Defamation Claim; Publication to Non-Management Employees Not Proven. Employees' admissions that they had used company courier service for personal use without authorization or reimbursement defeated their defamation claim, even though they contended that company policy permitted such use. Although non-management employees knew cause for employee's firing, no proof was offered as to how they knew. Cianci vs. Pettibone Corp & Nowosad vs. Pettibone Corp., Nos. 1-97-4175 and 1-97-4445.
Builder's Failure to Deliver Home in Substantial Compliance with Contract and Building Codes Actionable Under Consumer Fraud Act; Corporate Veil Pierced. Where Buyers relied on quality of construction of model home, but Builder-Seller delivered $227,387 home requiring $222,896 in repairs and expenses, in violation of both contract and building codes, Seller's conduct actionable under Consumer Fraud & Deceptive Practices Act, notwithstanding Builder may not have intentionally deceived. Corporate veil pierced because corporate builder transferred all assets to another corporation shortly after dispute with buyers began, corporation had only 1 shareholder, no stock issued or dividends declared. Falcon Associates, Inc. vs. Cox & Love, No. 5-96-0847-96-0676 (5th Dist. August 14, 1998).
Home Builder's "Code Plus" Representations Not Dischargeable in Bankruptcy. Builder's representation that architect would be used, and that home would be of "code plus" quality went beyond mere "puffing," and supported claim for non-dischargeability as to Builder's Chapter 7 proceeding. In re Ferguson, 1998 WL 420390 (Bkrtcy.N.D.Ill.). .
50% Shareholder Not "Fiduciary" to Other Shareholders. 50% Shareholder who was also Chief Operating Officer of closely held corporation did not stand in fiduciary capacity to other shareholders, so that even if he was guilty of misconduct in paying himself salary from the corporate profits, and therefore owed those amounts to other shareholders, such debt would not be excepted from discharge under 11 U.S.C.A. Section 523(a)(4). Even though shareholder owned largest block of stock, he could not act without consent of other shareholders. In re Frain, 1998 WL 423786 (Bkrtcy.N.D.Ill.).
Alleged Breach of Contract Requiring Purchase of Business Leads Barred by Contract Suit Limitations. Contract provision prohibiting suit more than one year after last purchase prohibited claim by Seller that Buyer breached contract to purchase specified number of leads per month, notwithstanding Seller's claim that agreement had been modified to provide for purchases by Buyer's branches, and suit timely when computed from those purchases. International Business Lists, Inc. vs. American Tel. & Tel. Co., 1998 WL 337975 (C.A.7-Ill.).
Contingent Price Provision of Purchase Agreement for Sale of Shares of Insurance Company Stock Not Void as Against Public Policy. Shareholders who sold their Merit Insurance Company stock with agreement for contingent purchase price payments depending on receipt of monies from claims against other insolvent insurer entitled to collect contingent price payments even though Merit Insurance under Illinois Department of Insurance Rehabilitation orders. Lewis X. Cohen Insurance Trust vs. Stern, 696 N.E.2d 743, 231 Ill.Dec. 447 (1st Dist, 1st Div. 1998).
Employers May Report New Hires Via Internet E-Mail. The Illinois Department of Employment Security now provides for reporting new hires by E-mail. New Hire reports must include new employee's name, address and social security number, and the employer's name, address and FEIN. E-mail data to: NHire@bes016rl.state.il.us.
Employee's Retaliatory Discharge Claim Stands Although Worker's Comp Claim Brought Outside Illinois. Plaintiff employee brought a worker's compensation claim in Missouri, and was thereafter fired from her job in Illinois. Although Defendant Employer contended there could be no claim in Illinois for retaliatory discharge for exercising worker's compensation rights in another state, court held that there is no logical difference between such rights exercised in Illinois and in another state. Reinneck vs. Taco Bell Corp., No. 5-97-0365 (5th Dist., June, 1998).
Comprehensive Restrictive Covenant in Employment Contract Upheld. Restrictive covenant in employment contract between radio station and on-air personality, upheld, although it prohibited him after termination from working for another station within a 100 mile radius for a 12 month period. Court held that covenant did not prevent him from earning a living, even though it prohibited him from performing "any managerial, sales, marketing, programming, transmitting or broadcasting services at another broadcast station or cable programming origination facility which broadcasts or transmits to all or any part of the viewing and listening public to which Employer broadcasts if such managerial, sales, marketing, broadcasting or programming services would mean that employee would be performing services which are the same or of similar kind or are of similar or greater responsibility as those Employee performed for Employer under this Agreement." Midwest Television, Inc. vs. Oloffson, No. 3-98-0016 (3rd Dist., August 12, 1998). Note: This lawsuit involves the Peoria-area radio personality known as Gary Olson.