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Chicago Business Litigation Lawyer Blog

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Attorney Fees Are Actual Damages in Legal Malpractice Claims, Second District Rules

Our Illinois legal malpractice lawyers recently noted an appellate decision from the Second District establishing that attorney fees are “actual damages” within the meaning of Illinois law. Nettleton v. Stogsdill, No. 2-07-1215 (Ill. 2nd Dec. 29, 2008). The ruling arose out of a legal malpractice claim by Margaret Nettleton, who…

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Fourth Circuit Rules That False Claims Act Applies to Contracting Fraud Against Iraqi Coalition Provisional Authority

Individual whistleblowers may sue a defense contractor that allegedly defrauded the Iraqi provisional government out of millions during the early part of the Iraq war, the Fourth U.S. Circuit Court of Appeals ruled April 10. United States of America ex rel. DRC Inc. v. Custer Battles LLC, No. 07-1220 (April,…

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FTC Website Explains Consumers Right to Be Free From Fraudulent and Harrassing Debt Collectors — Our Chicago Consumer Lawyers and Attorneys Can File Private Lawsuits if You are a Victim of Unfair Debt Collection Practices

  The Federal Trade Commission (“FTC”) website provides useful information regarding recognizing telephone and telemarketing frauds. A full copy of the Fair Debt Collection Practices Act is also linked to the site and you can view it here. The FTC website states: Debt Collection FAQs: A Guide for Consumers If…

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Land Owners May Pursue Lawsuit Alleging Chicago Landmark Ordinance Violates Illinois Constitution, First District Rules

In a decision with wide-reaching implications for Chicago land owners and developers, the First District Court of Appeal found March 6 that at least part of the Chicago Landmarks Ordinance was unconstitutionally vague. Hanna v. City of Chicago, No. 1-07-3548 (Ill. 1st Dist. March 6, 2009) is an Illinois real…

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Defense Contractor Northrop Grumman Settles False Claims Act Lawsuit Over Defective Satellite Parts

  Northrop Grumman Corporation agreed April 2 to settle a federal whistleblower lawsuit for $325 million, the New York Times reported. The lawsuit alleged that TRW Inc, a defense contractor that Northrop later acquired, intentionally suppressed evidence that certain electrical parts it manufactured did not work properly, causing the expensive…

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GMAC ‘Unfairly’ Repossessed Vehicle Under Illinois Consumer Fraud Act, Appeals Court Decides

  DiTommaso Lubin’s auto fraud, lemon law, and consumer fraud trial lawyers were impressed by a recent First District Court of Appeals ruling against the credit arm of General Motors for a wrongful repossession. The court said a trial court was correct to rule that General Motors Acceptance Corporation acted…

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Whistleblower and Justice Department Settle Qui Tam Lawsuit Against Quest Diagnostics

  Medical testing giant Quest Diagnostics settled a whistleblower lawsuit and a related criminal fine for a total of $302 million, the New York Daily News reported April 16. Quest and a subsidiary, Nichols Institute Diagnostics, were accused of defrauding Medicare by selling medical test kits that they knew did…

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Seventh Circuit Rules Class Action Objectors Cannot Collect Damages for Privacy Breach Under FCRA or State Consumer Protection Law

  In a long-running consumer privacy violation case, the Seventh U.S. Circuit Court of Appeals has denied damages to a group of homeowners whose mortgage company sold their information to telemarketers. In Mirfasihi v. Fleet Mortgage , No. 07-3402 (7th Cir. Dec. 30, 2008), Fleet Mortgage Company sold information on…

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Consumers May Be Entitled To Hundreds of Millions of Dollars of Refunds Due to Alleged Health Insurance Fraud

New York Attorney General Andrew Cuomo entered into a 50 million dollar settlement with health insurance carriers for alleged deceptive setting of “usual, customary and reasonable and rates” for out of net work health care providers through use of a conflicted rating agency owned by an insurance company. A news…

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Supreme Court to Decide Whether Federal Government is Always a Party in Qui Tam Whistleblower Cases

  The United States Supreme Court will soon decide whether the federal government is always considered a party to False Claims Act lawsuits. The court heard oral arguments in United States ex rel. Eisenstein v. City of New York, No. 08-660, on April 21. At issue is the timeline to…

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