Business Disputes

Supreme Court Allows Government Employee to Pursue Wrongful Termination Claim Even Though He Didn’t Know He Was Exercising First Amendment Free Speech Rights

June 15, 2016 | Peter S. Lubin and James V. DiTommaso

It’s generally a good idea to avoid saying any negative things about the company/people you work for, but what if you work for the government? The First Amendment of the U.S. Constitution was designed to promote the open and free discussion of politics and public figures, and that includes public workers who are employed by the government. This means employers are not allowed to retaliate against workers who express a political opinion.

This issue was recently brought before the U.S. Supreme Court over an allegedly illegal demotion. As it turns out, it was all a big misunderstanding, but the mistake had a very real effect for Jeffrey J. Heffernan, who worked as a police detective in Paterson, NJ. Heffernan’s bedridden mother had asked him to pick up a sign for Lawrence Spagnola, a candidate for mayor. Heffernan said he had not taken any position with regard to the candidate, but when he was carrying the sign for his mother, it looked as though Heffernan was making a political statement and endorsing Spagnola. As a direct result of his supervisor’s understanding of the situation, Heffernan was demoted to patrol officer. Continue reading ›

Partner Must Show Damages for Breach of Fiduciary Duties to Recover in a Lawsuit — Chicago Shareholder Rights Lawyer — Chicago Business Oppression Attorneys

May 25, 2016 | Peter S. Lubin and James V. DiTommaso

A plaintiff seeking to recover on a breach of fiduciary duty claim against a business partner must be able to show more than just evidence of his partner’s bad conduct, but must also demonstrate that he suffered measurable damages as a result of the conduct.

For almost a decade, JAP, Inc. and Today’s Sushi Corp. jointly owned and operated trendy Chicago eatery Sushi Wabi, cashing in on the burgeoning national sushi craze. In 1998, Angelo G., owner of JAP, and Angela L. and Susan T., owners of Today’s Sushi, entered a limited partnership agreement to open the Randolph Street restaurant, with each entity owning about half of the enterprise. The venture capitalized on Angela and Susan’s experience operating sushi restaurants, with JAP providing most of the investment funds. The partnership agreement gave each partner full power of management and control of the operation of the business by unanimous consent. Angelo’s brother Franco was made manager of Sushi Wabi and put in charge of daily decision-making, with Angelo to be consulted on “major” decisions. Things soured when Angela and Susan attempted to remove Franco as manager. JAP brought breach of fiduciary duty and conversion claims against the pair, and filed for an accounting and dissolution of the partnership. In its complaint, JAP alleged 19 separate bases for breach of fiduciary duty and demanded consequential and punitive damages. Continue reading ›

Fissures in Media Empire Exposed By Redstone Trial — Chicago Corporate Oppression Attorney Near Hinsdale

May 21, 2016 | Peter S. Lubin and James V. DiTommaso

It’s almost always newsworthy when a friend or family member of a wealthy celebrity publishes a “tell all” book or files a lawsuit against the celebrity in question or against other people close to the celebrity. But all this gossip has to be taken with a grain of salt, especially if the person making the accusations never bothered to make them until after they were cut off from the celebrity. Money is a powerful motivator for a lot of people and it’s common for some to lash out after having been cut off.

The 92-year-old Sumner M. Redstone, a media mogul with a $42 billion media empire that includes CBS and Viacom, has been accused by his ex-girlfriend and long-time friend of losing his mental competence. The friend is 51-year-old Manuela Herzer, who first started dating Redstone back in 2000 when he was in the process of getting divorced from his first wife. Redstone asked Herzer to marry him, and although she turned him down, the two remained good friends and Herzer has reportedly been active in Redstone’s entertainment companies.

Herzer received gifts, real estate money, and tens of millions of dollars in cash from Redstone. She even moved into his $20 million mansion at his request, and he gave her the mansion in his will, along with an addition $50 million. Herzer helped make healthcare decisions for Redstone, along with Sydney Holland, whom he was dating at the time. Holland was ejected from the home in 2015 after admitting to having been unfaithful, at which point Herzer said she took over the management of Redstone’s healthcare.

That all ended suddenly last October when Herzer was ejected from both the mansion and Redstone’s will in one fell swoop. Continue reading ›

Estate Battles Turns on the Meaning of the Phrase “Survivors” — Chicago Contested Probate Estate Lawyers — Chicago Will Contest Attorney

May 7, 2016 | Peter S. Lubin and James V. DiTommaso

An interesting recent Illinois appellate court decision from the First District addressed who may inherit from a testator’s estate when one of the named beneficiaries dies before the testator, with the outcome turning on the meaning of “survivors” as written in the will. Albert Lello, who passed away in 2012, drafted a will leaving his entire $8.2 million estate to his wife and two sisters “in equal shares, or to the survivor or survivors of them.” One sister, Virginia H., predeceased him by seven months. Her four children argued that “survivors” referred to them as the survivors, or heirs, of one of Albert’s named beneficiaries, and they should inherit what would have been her one-third share. The Cook County probate court and First District appellate court disagreed, siding with the two surviving beneficiaries, Albert’s widow and sister Rita S., who argued that the will unambiguously created a class gift that could only be inherited by surviving members of that class.

In 2013, Virginia’s children filed a petition for construction of the will, alleging that Albert would have intended them to inherit Virginia’s share because of the close relationship they shared with him and the fact that he had no children of his own, and that ambiguity in the will as to the “survivors” language should be construed in their favor under state laws of intestate succession. After further motions by both sides, the probate court entered an order finding the will unambiguous as a matter of law. Continue reading ›

Square Donut Fight Ends up in Court

April 8, 2016 | Peter S. Lubin and James V. DiTommaso

Ask almost anyone what a donut is and they’ll most likely describe it as a round pastry that’s fried and then usually glazed with sugar and sometimes various toppings, such as frosting and/or sprinkles. The definition usually consists of a hole in the center, unless the pastry is filled, but two bakeries have started making square donuts and are now fighting over the name “Square Donuts.”

A bakery in Terre Haute, Indiana (called “Square Donuts”) has been making donuts in a box-like form since the 1960s. When Family Express, a convenience store based out of Valparaiso, Indiana, started making their own square donuts in 2005, the Square Donuts sent a cease and desist letter, saying the name “square donuts” was proprietary.

Family Express responded that they did not think their use of the term “square donuts” constituted infringement. They didn’t hear back from Square Donuts so they continued making their box-like pastries. Family Express markets these oddly-shaped donuts on their website as one of their main offerings, saying they’re made every day before being delivered to all their outlets. They even posted a video that shows how the donuts are made, including a machine that cuts the pastries into squares.

The company talks up its oddly-shaped donuts as a unique attraction, despite the fact it has turned out that the shape of their donuts is not so unique after all. In fact, Family Express was about forty years behind another the Terre Haute-based bakery in making and marketing donuts in a new shape. Far from being the first to think of this, Family Express isn’t even the first in the state to make and advertise square donuts, much less the first in the country. Continue reading ›

Scalia’s Death Changes Corporate Responses To Lawsuits

March 30, 2016 | Peter S. Lubin and James V. DiTommaso

The following lists some of the key factors to consider as you face business dispute or shareholder dispute litigation:

• Business Litigation Goals. It is important to consider what you hope to accomplish through business dispute litigation. It is important to consider the ideal end result as you evaluate your options and litigation strategies. Unfortunately, the ideal end results often gets lost in the highly-charged emotions of litigation so it is important to set out your litigation goals at the outset and remind yourself of your optimal resolution through the partnership litigation process. Understanding your goals will also help you evaluate potential settlement offers.

• Litigation Strategy. It is important to know where you want to go so that you can then develop a litigation strategy, a legal map of sorts, on how you plan to reach your end goal. A business litigation strategy should be developed in close collaboration with your business litigation lawyer. At DiTommaso Lubin, our knowledgeable Illinois business lawsuit attorneys can help you analyze complex legal issues, such as potential violations of fiduciary duties, alleged breach of contracts, available accounting information, and civil procedure requirements, in order to develop the appropriate business litigation game plan.

Owners of Tony Luke’s Head to Court in Family Business Dispute

March 18, 2016 | Peter S. Lubin and James V. DiTommaso

Franchises can be a great opportunity for a business to branch out and expand while limiting their risks, but only if the contract is fair to both parties. Any time anyone signs a contract, they should read it carefully and have a qualified attorney look it over or they could find themselves bound to abide by terms they never meant to agree to.

Contracts exist in order to hold both parties accountable and make sure everyone does what they said they would do. They also provide guidelines for how to break up the business in the event one or more parties want to leave.

When going into business with family, it can be tempting to trust that they’ll do what they say they’ll do, but that’s actually a really bad idea. Business disputes and familial disputes can get very messy and even more so when they’re combined, as in the recent dispute over the cheesesteak restaurant, Tony Luke’s.

Anthony “Tony Luke” Lucidonio Sr. founded the restaurant in 1992 in Philadelphia and has since opened several more locations. In 2007, his son, Anthony “Tony” Lucidonio Jr., recommended his father and brother, Nicholas Lucidonio, become franchisors with Tony Jr. as the franchisee. The agreement allowed Tony Jr. to use the Tony Luke name in exchange for franchise fees and 15% royalties. Continue reading ›

DiTommaso Lubin Attorneys Named Among Top litigators in Illinois in the Areas of Business and Class Action law

March 15, 2016 | Peter S. Lubin and James V. DiTommaso

Peter S. Lubin, Patrick D. Austermuehle, and Andrew C. Murphy recognized by Illinois Super Lawyers

Peter S. Lubin have been selected as 2016 Illinois Super Lawyers in the areas of Business Litigation and Class Action Law. No more than 5% of attorneys in Illinois receive this honor each year. This marks the sixth straight year both co-founders of DiTommaso Lubin have been selected for this honor.

Two additional DiTommaso Lubin attorneys, Patrick D. Austermuehle and Andrew C. Murphy, have been selected as Illinois Rising Stars for the second straight year in the areas of Business Litigation and Class Action Law. Rising Stars are selected from attorneys under the age of 40 who have been practicing for less than 10 years. No more than 2.5% of Illinois attorneys are selected by the research team at Super Lawyers to receive his honor each year.

Illinois Partnership Dispute Law — Our Chicago Business Dispute Attorneys Represent Partners and Shareholders in Business Lawsuits

March 1, 2016 | Peter S. Lubin and James V. DiTommaso

Our business litigation firm has handled Illinois partnership disputes for many years. We have handled partnership disputes in a wide variety of different contexts from lawyer and doctor disputes to disputes by real-estate development partners.

We have handled TRO’s and preliminary injunction matters and dissolution of partnerships that have lasted over two decades.

Parlux Sues Jay Z for Breach of Partnership Agreement

February 12, 2016 | Peter S. Lubin and James V. DiTommaso

It is common for public figures to put their name on various products, even when they’re seemingly unrelated to that person’s career. Just seeing a celebrity’s name, face, or logo on a product is frequently enough to tempt people into making a purchase, but that alone is not always enough.

When celebrities put their name on a product, it’s usually in their best interest to help promote that product. Seeing a celebrity’s face or name on a product is one thing, but hearing that celebrity talk about that product is another. In return for using their name and likeness and/or their promotional efforts, celebrities with their own product lines usually receive a cut of the profits from that product.

Jay Z, whose real name is Shawn Carter, partnered up with Parlux Fragrances in 2013, to create Gold Jay Z, a signature fragrance line. The product was projected to do $50 million in sales, and in return for his participation in the deal, Jay Z received $2 million in royalties and 300,000 shares in Perfumanisa, the parent company of Parlux Fragrances. Continue reading ›