Articles Posted in Business Disputes

Trump and Today’s America

Part of the Trump Brand has come about from a success story that has arisen due to being able to overcome being bankrupt.  Trump turned around and transformed the brand of a Reality TV show series by the name of, “The Apprentice,”  to eventually triumph from TV into becoming the President of the United States of America.  Did his bankruptcy define his business? Most likely not.  A story emerged, one of a businessman transition to the leadership of a country.

The Decision to File

Of course, filing a bankruptcy is a huge decision.  Sometimes the trigger can be circumstances beyond control.  Even in today’s age, there may still be a stigma applied, as some view it as a moral failure.  As it stands and within a year, we have seen corporate bankruptcies at their highest point.

When a company files for a Chapter 11 bankruptcy, it seeks protection from creditors in trying to restructure debt.  The judge oversees this.  Effectively, it transfers the ownership of the company from shareholders to the creditors.  For the most part, shareholders are the ones that suffer the greatest loss.  Creditors are normally made whole.

What is at Stake?

The tax scheme makes allowances when creditors and shareholders of failing companies write off losses.  In 2018, the new tax law adds uncertainties, but shareholders and creditors knew that losses incurred in 2018 would face the new corporate tax rate of 21%, and so the government would only pick up 21% of the losses. Continue reading ›

A suburban business in Chicago is under scrutiny for implementation of a system in which the way the business allegedly sterilized caused emissions of a cancer-causing substance. The operational facility provides sterilization services to the medical, pharmaceutical and food industries.  Ironically, the health damage by its emissions cause might make locals worse off.

Consequently, a change was made to equipment that was being used had been installed.  Governor Bruce Rauner then, eventually, requested closing the plant completely which was also co-owned by his former private equity firm.  It was not looking good on him and locals were very angry.  Whether or not, and the type of action that would have been taken in circumstances, but for, that situation are not known. Local politicians added pressure and since we are dealing with cancer, people are not taking this issue lightly at all.

Right now, as it stands, the Attorney General, Lisa Madigan, believed that further investigations of air quality with analysis by experts would be necessary in order to make a case.  Perhaps, the one-off situation is not enough to gauge that there has been negligence or any breach that is substantial.  This would constitute as information that only a state or federal Environmental Protection Agency would be able to give in such circumstances.

It was the likelihood of the emissions ranged from “probably carcinogenic” to “carcinogenic to humans,” that became grounds for tests to be expedited.  It is speculated that the new system is less harmful, but can the damage be reversed?  Even a reduction by 90 percent cannot do much to whatever is out there in the atmosphere.  These issues are problematic, affect multiple residents’ health and will require in-depth investigation.  A school is even within the vicinity of impact.  If a class action arises, this will be one not taken lightly. Continue reading ›

A Judge has forced a legal dispute to go to mediation instead of hearing the matter in a trial. The matter is over a natural gas and energy plant issue and involves real estate and land being optioned between two energy plants. Both sides of the dispute have been postponed and to be heard back in court later. The Judge did not want to deal with the matter, as he felt that a resolution could be made.

How did the Court become Involved?

The way the court became involved was with an appeal being filed by the Lordstown Industrial Park.  The Court of Appeals was to decide whether real estate matters should be determined by court or arbitration.

Does Arbitration or Mediation Produce a Different Outcome?

Sometimes channeling through a different medium to litigation produces a different result.  In this case, that is what one of the parties’ feel.  The result may not be reasonable, the decision will then be made to go to litigation which will then drive up time and costs.  One party wants resolution, the other does not.  In their defense, mediation has been a tried option several times and has failed each time.  Issues that cannot be resolved remain outstanding, and it is not just one but quite a few. Continue reading ›

A plaintiff’s attorney in New York recently challenged a federal court’s authority to order him to pay a $10,000 fine as a sanction for misconduct under the Federal Rules of Civil Procedure in a copyright infringement case. Southern District of New York Judge Denise Cote imposed the monetary sanction on attorney Richard L. pursuant to Rule 11 of the Federal Rules and the court’s inherent authority to manage its own affairs (Paul Steeger v. JMS Cleaning Services, LLC).

The alleged conduct for which Richard was sanctioned included failure to serve notice to the defense of a pretrial hearing as required by court order, which the judge accused Richard of having done on three other occasions in the southern district, and also failing to respond to the defendant’s settlement offer.

Shortly after the defendant complained of Richard’s conduct to the court, the parties reached a voluntary settlement in the case. As a result of the complaint, the judge issued Richard an order to show cause why he should not be sanctioned.

At issue in Richard’s motion for consideration was what the court is allowed to do under its inherent power and under Rule 11, which requires that no monetary sanction or order may be imposed against a party or its counsel after the litigants have reached a voluntary settlement.

Judge Cote noted, however, that she received the defendant’s complaints about Richard’s misconduct and issued the order prior to the case’s formal dismissal or settlement. Instead, Richard had notified the court only that the parties had reached a settlement “in principle.” The case was not dismissed pursuant to the settlement until four weeks later.

The judge accused Richard of a pattern of omissions and misrepresentations in the case and failing to adhere to standards expected of officers of the court. Continue reading ›

DiTommaso Lubin’s predecessor firm litigated a case that is now before the Illinois Supreme Court on Respondent’s appeal of 750 ILCS § 5/513 (“Section 513”) being declared unconstitutional.

When an Illinois Statute is declared by a court to be unconstitutional it can be directly appealed to the Illinois Supreme Court and it does not have to go through to the Appellate Court first. Illinois Supreme Court Rule 302(a)(1).

The Respondent in the underlying case, where Section 513 was declared by the circuit court to be unconstitutional filed a direct appeal to the Illinois Supreme Court to decide if Section 513 is unconstitutional.

DiTommaso Lubin was retained by our client in the circuit court case to defend him in the appeal before the Illinois Supreme Court.

The circuit court’s ruling that Section 513 is unconstitutional was only applicable to the facts of the case. Our client’s fundamental right of raising his child and his decision to guide his daughter to a more appropriate college through the tightening of his pocket-book strings was obstructed by Section 513.

Section 513 creates two separate classes of persons, those married with children and those unmarried, widowed, or divorced with children. This is a violation of the Fourteenth Amendment of the United States Constitution. The Fourteenth Amendment guarantees equal protection to all United States citizens regardless of their classification by the government. Continue reading ›