Insurer Entitled to "Disambiguate" Alleged Ambiguity in Policy. Even though any ambiguity in insurance contract is to be resolved in favor of insured, insurer is first entitled to "disambiguate" any ambiguity in policy. Rule in favor of insured takes effect only after insurer has opportunity to refute alleged ambiguity. Stone Container Corp. v. Hartford Steam Boiler Inspection and Insurance Co., Nos. 97-1860 and 97-1989 Cons. Appeal, U.S.C.A.7th Circuit; N.D.Ill., E.Div. reversed, January 26, 1999.
Employer's "Floor-Offset" Pension Arrangement Not a Violation of ERISA. In a collateral attack against the IRS- blessed "floor-offset" scheme of arranging pension plans, Plaintiff claimed that his employer's arrangement discriminated illegally against employees who worked past normal retirement age. However record showed that such workers earned pension benefits in same manner as younger workers did. Lunn v. Montgomery Ward & Co., No. 98-1765, 7th Circuit U.S.C.A., Appeal, N.D.Ill., E.Div.; Aff'd. January 26, 1999.
IDES Reversed on Claim that Taxi Drivers are Employees For Whom It May Collect Unemployment Compensation Taxes. Cab drivers who leased cabs from petitioner corporation were independent contractors rather than employees, and IDES was not entitled to assess unemployment compensation taxes. Economic reality was that parties were lessor and lessee. Illinois Department of Employment Security reversed. Metro East Cab Co. v. Doherty, No. 5-97-0920, Ill.App. 5th Dist, January 21, 1999.
Contract's Integration Clause Prohibits Admission of Extrinsic Evidence. Where contract on its face is unambiguous and contains integration clause providing that contract represents entire agreement between the parties, and supersedes all prior negotiations, Court will not permit admission of extrinsic evidence. Court does not rule on whether "extrinsic ambiguity" approach may be used as to contract which does not contain integration clause. Air Safety, Inc. v. Teachers Realty Corporation, No. 85005, Ill.Sup.Ct., January 22, 1999.
New Legislation - Right of Publicity Act. HB 1422 creates the Right of Publicity Act which permits an individual to control how his or her individual identity may be used for commercial purposes. P.A. 90-747 will appear at 765 ILCS 1075/, and is effective 1-1-99.
Recent Legislation - Financial Institutions Digital Signature Act. HB 597 creates the Financial Institutions Digital Signature Act. The Act allows unique electronic identifiers to be used by financial institutions with the same legal effect as written signatures. It also provides for civil and/or criminal actions for unauthorized use of such identifiers. The Act, P.A. 90-575, will appear at 205 ILCS 705, and took effect on March 20, 1998.
Recent Legislation - International Commercial Arbitration Act. HB 2369, creates the International Commercial Arbitration Act, which will apply to international commercial arbitration in the State of Illinois. P.A.90-63l will appear at 710 ILCS 30/, and was effective 7-24-98.
Recent Legislation - Protection of Public Deposits With Banks. HB 2474 covers the protection of public deposits with banks, and amends the Uniform Commercial Code to provide that an unperfected security interest has priority over the rights of a lien creditor if the lien creditor is a trustee or receiver of a state or federally chartered financial institution and a security interest is granted by the financial institution. P.A. 90-696 was effective 8-7-98.
New Legislation - Wage Deduction Act Court Filings. HB 3790 deals with wage Deduction Act Court Filings. It streamlines the Wage Deduction Act to eliminate repeated court filings and employer interrogatories regarding the same judgment debtor and employer. P.A. 90-677; effective 1-1-99.
New Legislation - Creates Electronic Commerce Security Act. HB 3180 creates The Electronic Commerce Security Act, which authorizes the use of digital signatures and other forms of electronic signatures in a manner designed to provide the legal certainty necessary to effect transactions over public electronic networks. It also provides that electronic records can satisfy the legal requirement that information must be in writing. The Act establishes criminal penalties and civil remedies for violations, and provides that the Supreme Court (with respect to the courts), and the Joint Committee of Legislative Support Services (with respect to legislative agencies) shall establish rules for use of electronic records and signatures. P.A.90-759 will appear at 5 ILCS 175/, and will become effective 7-1-99.