For a whole host of reasons, there seems to be a steady flow of cases where two parties enter into a business agreement and one party fails or refuses to perform – even after receiving the benefit of the deal. In these situations the aggrieved party can issue oral and written notices demanding payment or full performance, they can agree to take less than what was set in the original contract, they can wait and hope that circumstances change and that the obligor has a change of heart and pays or performs, or they can file suit in a court
Continue Reading B2B Collection Suits
Corporate & Estate Legal Services, Ltd. Blogs
Latest from Corporate & Estate Legal Services, Ltd.
Chapter 7 Bankruptcy
Basics of Filing a
Chapter 7 Petition for Bankruptcy
Individuals
seeking bankruptcy protection have three options – they can file petitions
under Chapter 7, Chapter 11 or Chapter 13 of the code. This note is focused on Chapter
7 petitions. The key difference between Chapter 7 and Chapter 13 is the
repayment of debt. Chapter 7 is known as a liquidation proceeding, meaning your
assets are liquidated, subject to certain exemptions, to pay lenders. Chapter
13 allows consumers with a regular income to establish a payment plan to pay
back all or some of their debts to creditors over a
Continue Reading Chapter 7 Bankruptcy
Seventh Circuit declares that it has jurisdiction to hear tax claims and penalties…but you need to act promptly.
Don’t Win the Battle and Lose the War.
On September 20, 2019, the Seventh Circuit issued a clear word to the wise. If you are in a tax dispute with the IRS and you want the amount of tax or the amount of penalty determined in a bankruptcy court and not the Tax Court, then you must act promptly to file your bankruptcy petition and to thereafter promptly file your adversary case seeking a determination of the tax or penalty. The decision in Donald Bush v. US, No. 16-3244 (2019), put the Seventh Circuit in line with the nine other
Continue Reading Seventh Circuit declares that it has jurisdiction to hear tax claims and penalties…but you need to act promptly.
A QUICK LOOK AT SECTION ONE OF THE ILLINOIS FRAUDS ACT.
If you enter into contracts in
Illinois, you should at least be aware of the Frauds Act. Illinois law limits
certain claims and actions if they are not supported by a writing signed by the
party to be charged with the claim or action. This statute is known as the
Illinois Frauds Act. It states in section one: “That no action
shall be brought, whereby to charge any executor or administrator upon any
special promise to answer any debt or damages out of his own estate, or whereby
to charge the defendant upon any special promise to answer for the
Continue Reading A QUICK LOOK AT SECTION ONE OF THE ILLINOIS FRAUDS ACT.
A QUICK LOOK AT SECTION ONE OF THE ILLINOIS FRAUDS ACT.
If you enter into contracts in
Illinois, you should at least be aware of the Frauds Act. Illinois law limits
certain claims and actions if they are not supported by a writing signed by the
party to be charged with the claim or action. This statute is known as the
Illinois Frauds Act. It states in section one: “That no action
shall be brought, whereby to charge any executor or administrator upon any
special promise to answer any debt or damages out of his own estate, or whereby
to charge the defendant upon any special promise to answer for the
Continue Reading A QUICK LOOK AT SECTION ONE OF THE ILLINOIS FRAUDS ACT.
Small Estate Affidavit
Small Estate Affidavit. The Probate Act of 1975 contains a provision
which governs the use of affidavits in small estates. Under the statute, an
estate is considered small when all property passing to any party either by
intestacy or under a will does not exceed $100,000. (735 ILCS
5/25-1(b)(6). When a decedent’s estate assets,
subject to probate, do not exceed $100,000, then an affidavit may be used to collect
monies or personal property, obtain access to a safe deposit box, or deal with
registrar’s or transfer agents. Assets subject to probate does not include
assets which transfer automatically upon decedent’s
Continue Reading Small Estate Affidavit
Small Estate Affidavit
Small Estate Affidavit. The Probate Act of 1975 contains a provision
which governs the use of affidavits in small estates. Under the statute, an
estate is considered small when all property passing to any party either by
intestacy or under a will does not exceed $100,000. (735 ILCS
5/25-1(b)(6). When a decedent’s estate assets,
subject to probate, do not exceed $100,000, then an affidavit may be used to collect
monies or personal property, obtain access to a safe deposit box, or deal with
registrar’s or transfer agents. Assets subject to probate does not include
assets which transfer automatically upon decedent’s
Continue Reading Small Estate Affidavit
CONTRACT AMBIGUITIES
Clients oftentimes ask me to forecast how much a lawsuit will cost. In the context of contract disputes, the answer invariably depends on the nature of the written documentation. If the parties relied on an oral agreement, then it becomes much more difficult to prevail in the case on what is known as summary judgment. In summary judgment, one of the parties files a written motion asking the court to make a final ruling concerning a particular issue, count, or the entire case. When the parties don’t have a written agreement, it becomes more problematic to proceed on summary judgment
Continue Reading CONTRACT AMBIGUITIES
CONTRACT AMBIGUITIES
Clients oftentimes ask me to forecast how much a lawsuit will cost. In the context of contract disputes, the answer invariably depends on the nature of the written documentation. If the parties relied on an oral agreement, then it becomes much more difficult to prevail in the case on what is known as summary judgment. In summary judgment, one of the parties files a written motion asking the court to make a final ruling concerning a particular issue, count, or the entire case. When the parties don’t have a written agreement, it becomes more problematic to proceed on summary judgment
Continue Reading CONTRACT AMBIGUITIES
What is Donative Intent and Why does it Matter?
Donative intent is a
phrase used to describe the situation where a transfer of property is made as a
gift. Simply put, it is an intent to gift. Someone is said to have donative
intent if they give something of value to someone else and do not expect the
property returned and do not expect some other property to be given in exchange
for the transfer. Oftentimes, people give or exchange property without
preparing a document to describe or “classify” the transaction. When my son
asks for $20 to buy gas for his car, I don’t typically prepare a document
Continue Reading What is Donative Intent and Why does it Matter?
What is Donative Intent and Why does it Matter?
Donative intent is a
phrase used to describe the situation where a transfer of property is made as a
gift. Simply put, it is an intent to gift. Someone is said to have donative
intent if they give something of value to someone else and do not expect the
property returned and do not expect some other property to be given in exchange
for the transfer. Oftentimes, people give or exchange property without
preparing a document to describe or “classify” the transaction. When my son
asks for $20 to buy gas for his car, I don’t typically prepare a document
Continue Reading What is Donative Intent and Why does it Matter?
Essential Business Agreements
Essential Business
Contracts. Some clients are proactive and prepare written agreements and others
prefer a verbal agreement with a good handshake. Both oral and written
agreements are legally enforceable, but written agreements help the court by
providing a tangible form of the terms of the agreement. To be certain, your
foundational corporate governance records should be written. This includes an
operating agreement (LLC) or bylaws and a shareholders agreement to address
succession planning, rights of first refusal, and handling deadlocks. Once the
company is established and has written governance documents, clients should
consider creating a contract form with standard terms
Continue Reading Essential Business Agreements
Essential Business Agreements
Essential Business
Contracts. Some clients are proactive and prepare written agreements and others
prefer a verbal agreement with a good handshake. Both oral and written
agreements are legally enforceable, but written agreements help the court by
providing a tangible form of the terms of the agreement. To be certain, your
foundational corporate governance records should be written. This includes an
operating agreement (LLC) or bylaws and a shareholders agreement to address
succession planning, rights of first refusal, and handling deadlocks. Once the
company is established and has written governance documents, clients should
consider creating a contract form with standard terms
Continue Reading Essential Business Agreements
A Federal Trade Secret Cause of Action – the Defend Trade Secrets Act of 2016
Defend Trade Secrets Act – A Federal Trade Secret Cause of Action.
The DTSA establishes a federal civil cause of action for the misappropriation of trade secrets related to a product or service used in, or intended for use in, interstate or foreign commerce. While Illinois has the ITSA (Illinois Trade Secrets Act), the DTSA has enhanced remedies and Protections which may be useful to employers. The Act contains a notice provision, so it is important that employers provide employees with written notice of their rights. Without the notice, the employer losses valuable financial protections under the Act.
The DTSA
Continue Reading A Federal Trade Secret Cause of Action – the Defend Trade Secrets Act of 2016
A Federal Trade Secret Cause of Action – the Defend Trade Secrets Act of 2016
Defend Trade Secrets Act – A Federal Trade Secret Cause of Action.
The DTSA establishes a federal civil cause of action for the misappropriation of trade secrets related to a product or service used in, or intended for use in, interstate or foreign commerce. While Illinois has the ITSA (Illinois Trade Secrets Act), the DTSA has enhanced remedies and Protections which may be useful to employers. The Act contains a notice provision, so it is important that employers provide employees with written notice of their rights. Without the notice, the employer losses valuable financial protections under the Act.
The DTSA
Continue Reading A Federal Trade Secret Cause of Action – the Defend Trade Secrets Act of 2016
Fifield v. Premier Dealer Services. Illinois Two-Year Rule for non-compete agreements.
Non-Compete
Covenant found unenforceable. Employers Non-Compete Covenant was not supported
by Adequate Consideration where employment period did not exceed two years.
It
is not uncommon for employers and employees to enter into employment agreements
containing a restrictive covenant.
Typical restrictive covenants include confidentiality agreements,
non-solicitation agreements, and agreements not to compete. Unfortunately, all
too often these agreements fail to set forth separate and specific
consideration for the restrictive covenant provisions. Instead they rely upon a general recitation
that the promise to employ is the consideration given for all of the promises
or agreements extended by the employee.
Employers need to
Continue Reading Fifield v. Premier Dealer Services. Illinois Two-Year Rule for non-compete agreements.