Interesting article in the Tribune about short sales…

Dan
Posted on in Real Estate Law

There was an article in today’s Chicago Tribune warning of all the potential pitfalls to buyers on purchasing a house through a short sale. While it’s true that there are many potential landmines for a buyer, you can still get a great deal. Just make sure you use a lawyer who can help you navigate through the minefeild. Shorts sales remain a valuable tool in helping property owners get out of a very difficult financial predicament, and helping to put more homes on the market for buyers.

Here’s the article:

http://www.chicagotribune.com/classified/realestate/foreclosure/sc-cons-1115-short-sales-20121115,0,7838703.story

 

Dan*

 

 

 

 

*Dan Sugrue is a Lake County lawyer in the Libertyville area who concentrates on bankruptcy, personal injury, real estate and probate law, including wills and trusts

Bad news for the Twinkie, Hostess mediation fails

Dan
Posted on in Bankruptcy Law

A last ditch effort at private mediation failed on Tuesday, setting Hostess on a course for liquidation, assuming the bankruptcy court does not grant pending objections to the plan submitted by Hostess.

Here’s the story:

http://money.cnn.com/2012/11/20/news/companies/hostess-mediation-fails/

 

Dan*

 

 

 

 

 

*Dan Sugrue is a lawyer in Libertyville who concentrates on Bankruptcy, Personal Injury, Real Estate and Probate Law, including wills and trusts

Still hope for the Twinkie: private mediation set for Tuesday in Hostess bankruptcy

Dan
Posted on in Bankruptcy Law

Hostess Brands, Inc., agreed to private mediation at the urging of U.S. Bankruptcy Judge Robert Drain of the Southern District of New York.  The mediation is scheduled to take place between Hostess and the Bakery, Confectionary, Tobacco Workers and Grain Miller’s International Union on Tuesday. Even if the mediation fails to produce results, Hostess’s liquidation plan still faces objections from the U.S. Trustee over proposed bonuses to some employees, as well as union objections to the plan. (Case# 12-22052)

 

Bankruptcy law update

Dan
Posted on in General Legal

The U.S. Bankruptcy court for the Northern District of Illinois ruled in the case of City of Chicago v. Norman Paul Wexler, 12 A 338, that the Chapter 7 trustee could not intervene in the adversary proceeding filed by the City of Chicago against the debtor, Norman Paul Wexler, because the trustee was not timely in filing his motion to intervene and the Chapter 7 trustee could not intervene as a matter of right because there is no federal statute in this case which grants the trustee the unconditional right to intervene.

Insurance coverage for Libertyville assault

Dan
Posted on in General Legal, Personal Injury Law

MHM Services v. Assurance Company of America involves a dispute over liability coverage of an umbrella policy for MHM Services, a company that screens inmates for the Illinois Department of Corrections that are nearing the end of their term, but are eligible for indefinite confinement as sexually violent persons. The suit alleged that MHM negligently recommended the release of Christopher Hanson, a convicted sex offender with a history of recidivism. Within eight months of his release, Hanson brutally sexually assaulted a teenager on a bike path in Libertyville and repeatedly stabbed her until she appear lifeless. Fortunately, she survived the attack and was able to identify her assailant, who was convicted and incarcerated for the crime.

Facing a lawsuit with possible damages in the millions of dollars, MHM filed suit against Assurance, the carrier of it’s umbrella policy, alleging that Assurance wrongfully denied payment under the policy. Assurance responded by claiming that MHM violated the notice provision of its policy by not disclosing the existence of the lawsuit until two years after it had been filed.

In ruling for Assurance, the appellate court referred to a four part test in determining the reasonableness of a delay in notifying the carrier: 1) the specific language of the policy’s notice provision 2)  the insured’s sophistication in commerce and insurance matters 3) the insured’s awareness of an event that might trigger insurance coverage  4)  the insured’s diligence and reasonable care in ascertaining whether insurance coverage is available and  5) whether the insured’s delay caused prejudice to the insurer.

In all four parts, according the court, MHM failed the test, and was properly denied coverage.

Contract law update

Dan
Posted on in General Legal

In Gerard Kenny v. Kenny Industries, 2012 IL App (1st) 111782, the Court ruled that members of a share purchase agreement cannot assign a debt owed to them arising out of one cause of action to use as a set off against a judgment in another cause of action because the individual members did not have the right to use the prior judgement as a set off on their own. An assignee cannot obtain a greator right that that possessed by the assignor. Therefore, the appellant cannot use a judgment debt as a set off because the assignors of that debt couldn’t use it individually as a set off.

Foreclosure suit upheld

Dan
Posted on in Bankruptcy Law

In Aurora Loan Services v. Pajor, 2012 Ill.App3d 110899, the Appelate court upheld a denial of defendant’s 2-1401 motion to vacate a foreclosure judgment because 1) there were no new facts not already in the record on appeal which necessitated the motion and 2) the Plaintiff’s technical error in its notice of a grace period prior to suit did not prejudice the defendant.

Defendant’s filing of Chapter 7 bankruptcy protection delayed the foreclosure proceeding, but did not affect the final resolution of the case.

Bankruptcy Law update

Dan
Posted on in General Legal

In re: Leroy Williams concerned the ability of a creditor to collect on collateral which is also redeemable by the debtor. It involved the case of a debtor who filed a Chapter 13 action and whose corporation once owned buses which were held as collateral for the debtor’s secured debt.

The debtor claimed that, since the buses were collateral that could be redeemed by the debtor, the creditor could not repossess the buses without violating the automatic stay put into effect through the debtor’s filing of his bankruptcy petition. The Court ruled that, since the buses were owned by the debtor’s corporation and not the debtor, the buses were not considered to be part of the bankruptcy estate and the creditor could repossess the buses without violating the automatic stay.

Illinois Supreme Court allows challenge to Cook County Assault Weapons Ban

Dan
Posted on in General Legal

The Illinois Supreme Court allows a lawsuit challenging the constitutionality of Cook County’s assault weapons ban to proceed. in Wilson v. County of Cook, 2012 IL 112026, Cook County’s longstanding ban on so-called, “assault weapons” was challenged on the basis of three arguments: 1) that the ordinance was unconstitutionally vague, 2) that the ordinance violates the plaintiffs’ constitutional right to bear arms under the Second Amendment and 3) the ordinance violates the Equal Protection clause of the U.S. Constitution.

In Wilson, the IL Supreme Court affirmed the lower courts’ dismissal of the Plaintiif’s complaint on the grounds that the ordinance was not unconstitutionally vague and did not violate the Equal Protection clause. However, the court did reverse the lower courts’ dismissal on the basis that Cook County failed to show that the assault weapons banned by its ordinance fall outside the scope of the rights protected by the Second Amendment.

This means that the Plaintiffs in this case can proceed with their lawsuit challenging the constitutionality of Cook County’s Assault Weapons ban on the basis that the ordinance infringes upon the Second Amendment rights of Cook County residents.

Limits Placed on Illinois Anti-SLAPP statute

Dan
Posted on in General Legal

In Sandholm v.Keckler, 943 N.E.2d 1109, 239 Ill.2d 589 the Illinois Supreme Court ruled that the Citizen Participation Act (735 ILCS 110/1 et seq.) does not bar lawsuits against those petitioning government bodies when there are meritorious claims alleged in the suit outside of the defendants’ petitioning activites.