In this appeal of a Shareholder Derivative case concerning a stock option plan used as executive compensation, the Plaintiff appealed from dismissal with prejudice by the District Court for the Northern District of Illinois, Eastern Division. Plaintiff was a stockholder in DeVry Education Group, a Delaware company that owns and operates for-profit colleges. Plaintiff brought...Read More

The “good faith” defense articulated in 11 U.S.C. 550(b)(1) applies as long as the transferee: (1) is an immediate or mediate transferee under §550(a)(2); (2) took the transfers for value; (3) took the transfers “in good faith;” and (4) took the transfers “without knowledge of the voidability of the transfer avoided.”Read More

Standard was entitled to the benefits of TILA – including notice of the 3-day right to rescind the loan. As Trustee, the Court pointed out, Standard held legal and equitable title to the underlying real estate while the borrower-beneficiaries held a mere personal property interest in the Trust. Because Standard had not been informed of...Read More

The Illinois Supreme Court reversed, noting that just because the Seymours had a legal duty to disclose their suit but failed to do so did not establish intent to deceive or manipulate the Bankruptcy Court. Nor, as the Defendants had asserted, did the Seymours’ 2010 Motion to Modify constitute proof that they were aware of...Read More

The District Court found that Peoples Gas resolved its liability to the government via administrative settlement and therefore only had a claim for its contribution; that each consent order was subject to the 3-year limitations period under 42 U.S.C. 9613(g)(3)(B); and that a contribution claim under the 2011 consent order was barred by Beazer’s operator...Read More

The Attorney for Defendants in the District Court filed a lien on proceeds in a related State case and attempted to jump the line in terms of priority. When the District Court stopped him he sought relief in the 7th Circuit. The Appellate Court not only disagreed with his actions but actually sanctioned him for...Read More

This guest-post, a synopsis of "Let's Talk About Arbitration" by Attorney William Goren from his blog, Understanding the ADA. The original post discusses issues pertaining to arbitration of claims arising under the Americans with Disabilities Act. The author assumes that readers know the difference between arbitration and mediationRead More

Debtor Hospital filed an adversary complaint claiming that a prepetition government claim should be subject to the Automatic Stay. The Bankruptcy Court agreed citing 11 U.S.C. 362(a)(6). District Court reversed in part. The 7th Circuit Reversed again.Read More

The 7th Circuit found that the phrase “for cause” as used in the Bankruptcy Code embraces conduct that, even if not a violation of required procedures, avoids repayment of a debt without an adequate reason. In other words, the case was dismissed because the Schwartzes failed to pay as much of their indebtedness as they...Read More

The 7th Circuit points out that under Indiana law a buyer who has received non-conforming goods cannot sue the seller for negligent misrepresentation to avoid the Economic Loss Doctrine, which limits it to contract remedies for purely economic losses. There is no basis for transforming a breach of contract claim into a tort claim to...Read More