New Illinois Law Targets "Junk E-Mail" The Electronic Mail Act prohibits unsolicited email advertisements which list a false internet domain name, or use a third party's internet domain name without permission, or which use false or misleading information in the subject line. Such transmissions also violate the Consumer Fraud & Deceptive Practices Act, and constitute a criminal offense. Anyone suffering actual damages may collect attorneys fees and costs, and may elect, in lieu of actual damages, to recover either $10 per unsolicited email message, or $25,000/day, whichever is less. Both email recipients and email service providers may bring action and recover damages. The new law is effective Jan. 1, 2000. http://legis.state.il.us/publicacts/pubact91/acts/91-0233.html
DEPARTMENT OF PROFESSIONAL REGULATION DATA ONLINE. State licensing information concerning architects, doctors, nurses, dentists, land surveyors, lie detector providers, professional service corporations, private investigators, public accountants, and many other professional groups is now online at www.state.il.us/dpr . Users may search by name or license number. Information provided will include the licensee's name, city, state, the date the license was originally issued, expiration date of the license, the license status and any disciplinary action.
EMPLOYER MUST PROVE INSTANCES, AMOUNTS OF LOSSES DUE TO EMPLOYEE DISHONESTY FOR INSURANCE COVERAGE. In breach of contract suit under employer's commercial crimes policy, Summary Judgment properly granted to insurer where employer presented no evidence as to number of instances of employee theft, or amount involved in each theft. Such evidence required to overcome policy exclusion for "inventory error." Also, no way to know which occurrences involved theft in excess of $10,000 deductible for each occurrence. 1st Dist. Reedy Industries, Inc. v. Hartford Insurance Co., 1st Dist., No. 1-98-0701, (7/30/99; nunc pro tunc 6/11/99). Cook Co. Aff'd. http://www.state.il.us/court/appellates/1999/1980701.htm
MINORITY SHAREHOLDER'S CLAIM FOR WASTE DISMISSED; SHOULD HAVE BROUGHT CORPORATE DERIVATIVE ACTION. Minority shareholder's cause of action alleging corporate waste due to dominant shareholder's transaction of business by corporation with multiple outside corporations owned by him, at greatly inflated prices, or for worthless or non-existent services was properly dismissed. Claims for injury to the corporation should be brought as a derivative action on behalf of the corporation, and not as a personal action for benefit of the shareholder. Also, since freezeout merger is authorized by the Illinois Business Corporation Act, minority shareholder's claim of wrongful elimination of his ownership in order to benefit dominant shareholder is not a legally cognizable injury, and was also properly dismissed. Small v. Sussman, 1st Dist., No. 1-98-1113 (6/30/99). Cook Co. Aff'd. http://www.state.il.us/court/appellates/1999/1981113.htm
Defendant's participation in litigation not a bar to arbitration, but motion for summary judgment is. Construction contract provision that "law of jurisdiction" where building site located shall be governing law was interpreted to choose state over federal arbitration law. In complex litigation involving many issues with claims and cross claims, Defendant General contractor did not waive right to arbitration as to subcontractors by litigating and proceeding with discovery, but did waive arbitration of claims against certain subcontractors against whom it filed Motions for Summary Judgment. State Farm Mutual Automobile Insurance Company v. George Hyman Construction Company, 4th Dist. No. 4-98-0570 (8/3/99). McLean Co. Aff'd. http://www.state.il.us/court/appellates/1999/4980570.htm
LAW FIRM NOT HOLDER IN DUE COURSE UNDER UCC. Under 810 ILCS 5/3-303(a)(1) was not a holder in due course for checks endorsed by grain dealer-client to law firm for future legal services. Carter & Grimsley v. Omni Trading, Inc., 3d Dist., No. 3-98-0483 (8/13/99). Peoria Co. Aff'd. Case is not yet posted online. When available, it will be found at http://www.state.il.us/court/appellates/1999/3980483.htm
NEW FEDERAL REGULATIONS PROPOSED FOR SALE OF PARTNERSHIP, S-CORPORATION AND TRUST INTERESTS. In response to recent legislation, the Internal Revenue Service has issued proposed regulations concerning sales or exchanges of interests in partnerships, S corporations, and trusts. See 64 FR 43117, Aug. 9, 1999. http://clr.findlaw.com/content/64fr43117
Y2K REGS ISSUED BY SEC. The SEC has issued temporary rules for broker-dealers to insure their preparation for the Year 2000 transition. The temporary rules are meant to reduce the risk posed by broker-dealers and transfer agents that have not adequately prepared for the millenium transition. 64 FR 42012, Aug. 3, 1999, amending 17 CFR Part 240. http://clr.findlaw.com/content/64fr42012
ERISA PENALTY REGS AMENDED. Regulations concerning civil monetary penalties have been relocated and redesignated under ERISA by the Pension and Welfare Benefits Administration. See 64 FR 42245, Aug. 3, 1999, amending 29 CFR Part 2570 and adding 29 CFR Part 2575. http://clr.findlaw.com/content/64fr42245
IRS unable to "pierce" LLC veil for payment of taxes. Construing State law (West Virginia) a recent Memorandum published by Tax Analysts has held that the IRS is not entitled to pierce the LLC veil of a single member LLC for payment of the taxes of that member unless it can show that the LLC was merely the alter-ego of the member. In part, the decision held that the "mere fact that the LLC entity is disregarded for federal tax purposes does not entitle the Service to disregard the entity for purposes of collection." State law will govern the terms under which piercing the LLC veil is appropriate. The citation is ILM 199930013; the Tax Analyst Document Number is 1999-25533.
LLCs TO BE PERMITTED to adopt assumed names. Under new legislation making several minor amendments to the LLC Act, Limited Liability Companies will be permitted to adopt assumed names, much as corporations now do. However, like corporations, LLC's may use, without registering them as assumed names, any identification of its business with an owned servicemark or trademark, or a name of a division which does not contain the LLC designation. Public Act 91-0354 http://legis.state.il.us/publicacts/pubact91/acts/91-0354.html#Top
Illinois Financial Institutions protected from y2k. Public Act 91-0645, effective immediately, creates the Illinois Financial Institutions Year 2000 Safety and Soundness Act, which provides, among other things, that someone injured by the bank's Y2K failure must allow 60 days for the bank to resolve the claim before bringing an action. The Act also requires the bank to waive late fees, and to delay by 30 days actions to collect debts from consumers whose default is caused by Y2K problems of 3rd parties. In addition, such institutions are not liable for Y2K damages to persons not in privity . http://legis.state.il.us/publicacts/pubact91/acts/91-0645.html