A purchaser of a classic 1973 Ford Bronco sued the car’s auctioneer in Illinois court. The purchaser alleged that the vendor committed fraud by misrepresenting the condition of the vehicle in its advertisements and during the auction. The circuit court dismissed the case for lack of personal jurisdiction. The Illinois Appellate Court reversed, finding that the vendor had sufficient contacts with Illinois when it solicited the business of the purchaser via advertisements, its website, and its communications over email and the phone.

In January 2018, John Dixon saw an advertisement posted by GAA Classic Cars, LLC on a car-related website. The advertisement listed a 1973 Ford Bronco for sale at auction. Dixon responded to the advertisement by sending an email to GAA requesting more information about the Bronco including how to bid for it. GAA responded with an email to Dixon, inviting Dixon to bid on the Bronco at the auction scheduled for March 2, 2018. GAA’s email told Dixon that he could participate via live simulcast bidding or on the telephone via phone bidding. GAA added that Dixon could find more information about the Bronco at GAA’s website. Dixon asked for pictures of the Bronco’s engine. GAA responded by email that it would send him pictures of the engine once GAA received the Bronco from its owner. GAA told Dixon that the auction price for the Bronco should run around $30,000.00 – $40,000.00. Continue reading ›

As the call for political activism has grown louder and wider in the past few years, most of us have seen or heard people urging us to call our political representatives to let them know how we feel about certain issues. But what if doing so could land you in court for defamation?

That’s what happened to Maggy Hurchalla, a long-time environmental activist who served as Martin County’s first female commissioner from 1974 to 1994 when she lost to a candidate who was heavily backed by developers.

Hurchalla has spent most of her life fighting to protect the Florida environment from developers. In the 20 years she spent as a county commissioner, growth and development did happen, but as Hurchalla put it, it happened slowly, “sanely”, and in a way that would not have a negative impact on Florida’s environment.

In 2008, Lake Point, a rock-mining company, bought 2,200 acres of what used to be sugar cane fields in Martin County, not far from Lake Okeechobee. Lake Point wanted to mine for limestone and use the leftover pits to store and clean polluted lake water, which would otherwise be flushed down the St. Lucie Estuary and contribute to toxic algae blooms, which are already a problem. The project was approved by both Martin County and the South Florida Water Management District.

That all sounds like a good thing for the environment, but according to Hurchalla, she became troubled when, a few years later, the company offered to sell that water to the city of West Palm Beach. Hurchalla and Martin County officials were not convinced that the plan would really benefit the environment. Continue reading ›

A condo association held an insurance policy on its condo buildings. In 2014, a hail and wind storm damaged the siding on several of the buildings. The storm, however, damaged only the south and west-facing sides of the buildings. The association’s insurer initially paid the association several million to repair the damage, which covered the replacement cost of siding for the south and west sides of the buildings. The association found, however, that matching siding was no longer produced. The insurer refused to pay the cost of replacing the siding on all sides of the building, so the association sued. The district court ruled in favor of the association, and the insurer appealed. The appellate panel affirmed. The panel found that requiring the insurer to replace all sides of the building was a sensible construction of the contract, given that replacing the siding such that two sides of the building did not match the other two would reduce the value of the properties and keep the insured from being made whole.

Windridge of Naperville Condominium Association held an insurance policy via Philadelphia Indemnity Insurance Company. In May 2014, a hail and wind storm-damaged buildings owned by Windridge. These buildings were insured by Philadelphia Indemnity. The storm directly damaged the siding only on the buildings’ south and west sides. Philadelphia Indemnity paid Windridge $2.1 million for the damage, which covered the replacement of the siding on the south and west sides.

Windridge, however, sought replacement of the siding on all four sides of the building, as matching siding for the south and west sides was no longer available. Philadelphia Indemnity refused to pay those costs, arguing that it was only responsible for replacing the siding that was directly damaged by the storm. The district court granted summary judgment for Windridge, and Philadelphia Indemnity appealed. Continue reading ›

A couple purchased an RV from a retailer in 2014. The RV came with a warranty from the manufacturer that limited the warranties to one year from the date of purchase. The warranty required that the purchasers notify the manufacturer or an authorized dealer within five days of discovering any defect. The purchasers experienced continual problems with the RV over the time that they owned it. The RV was repaired multiple times, but the service technicians were never able to fully resolve the defects. The purchasers asked the manufacturer to repurchase the RV from them. When the manufacturer refused, the purchasers sued, claiming the manufacturer breached its warranties. The district court granted summary judgment to the manufacturer. The appellate panel affirmed, finding that the purchasers had not given the manufacturer enough chances under Indiana law to cure the defects with the RV.

Vanessa and Randy Mathews purchased a Holiday Rambler Presidential RV in May 2014 from Mellott Brothers Trailer Sales, Inc. The RV came with a warranty from the manufacturer, REV Recreation Group. The warranty limited both express and implied warranties to one year from the purchase date. To take advantage of the warranty, the Mathews had to notify REV or an authorized dealer within five days of discovering a defect.

The Mathews alleged that they encountered problems with the RV almost as soon as they drove it off the lot. They called the dealership to report that there were issues with the interior lights, the refrigerator, and the leveling system. A month later, the Mathews encountered further difficulty: the converter was blowing fuses, the leveling jacks worked only intermittently, the curbside slide cable broke, and there were problems with the TV and the DVD player. After calling the dealer again, the Mathews were given the number for REV so that they could locate an authorized repair center. Continue reading ›

Our Chicago auto fraud firm filed an amicus brief in the Illinois Supreme Court on the side of an RV purchaser who wanted to revoke acceptance due to a leaky roof and the inability to use the RV all summer even though it is a summer product. The lower court had ruled against the RV purchasers holding that had to provide an opportunity to cure before revoking acceptance. The Illinois Supreme Court disagreed and held there was no right to cure for a defective product and the seller should have permitted revocation of acceptance. You can read the entire opinion Chicago auto fraud attorneys. Continue reading ›

A sports nutrition and wellness consulting firm sued a major manufacturer of sports drinks, arguing that the manufacturer had violated the consulting firm’s trademark when it referred to itself as “The Sports Fuel Company.” The district court granted summary judgment in favor of the manufacturer. The appellate panel affirmed, finding that the manufacturer used the phrase in question as a descriptor and not a source indicator. The panel found that this was an example of fair use.

SportFuel is a Chicago-based sports nutrition and wellness consulting firm whose clients include several of Chicago’s professional sports teams and their athletes. The company provides personalized nutritional consulting services to professional and amateur athletes and also sells SportFuel branded dietary supplements. SportFuel holds two registered trademarks for “SportFuel.” One of SportFuel’s trademarks became incontestable in 2013, and the second was registered for the first time in 2015. Continue reading ›

A foreign currency trading firm was implicated in misconduct when a separate company it had traded with was investigated by a regulatory authority. The second company settled the investigation with the regulator, and the regulator published documents relating to the investigation and settlement on its website. The documents named the trading firm and implied that the firm had engaged in illegal practices. The trading firm sued the regulator, arguing that the regulator had violated its due process rights and defamed it in the documents on its website. The district court dismissed the action, finding that the trading firm had not exhausted its available administrative remedies. The appellate panel affirmed, and also found that the state-law claims for defamation were preempted by the federal regulatory scheme and not available as a remedy to the trading firm.

National Futures Association is a self-regulatory organization under the Commodities Futures Trading Commission Act of 1974. The Commodity Exchange Act requires that SROs set forth many types of regulations and rules, including rules that provide that its members and persons associated with its members shall be appropriately disciplined for any violation of its rules. The NFA is subject to the broad authority of the Commodity Futures Trading Commission. The authority includes review of NFA disciplinary actions or denials of membership.

Effex Capital, LLC is a closely held, foreign-currency trading firm managed and controlled by John Dittami. Effex operates as an institutional over-the-counter, foreign-exchange liquidity provider and engages solely in transactions with other eligible contract participants such as financial institutions or highly capitalized trading counterparts. Because of the nature of Effex’s trading, it is not subject to regulation by the NFA and is therefore not a member of the NFA. Continue reading ›

On July 31, 2019, Illinois Governor J.B. Pritzker signed into law HB834, which amends the Illinois Equal Pay Act by restricting employers’ ability to inqure about or use pay history in hiring and compensation decisions. Illinois becomes the eleventh state to enact legislation prohibiting salary history inquiries by private employers. Other states like Michigan and Wisconsin, however, have gone the opposite way passing legislation prohibiting local governments from enacting salary history inquiry ban laws. The No Salary History law, will take effect by October 1, 2019, giving employers just 60 days to adjust their policies and hiring procedures to ensure compliance with the new law.

Since 2003, the Equal Pay Act has prohibited Illinois employers from paying employees who perform “substantially similar work” different pay rates based on their sex or race, though employers are free to pay employees of different sexes or races differently provided that the pay differential is based on factors other than sex or race.

Under the amendments, employers may no longer screen job applicants by requiring that their current or past salary “satisfy minimum or maximum criteria; or to request or require such wage or salary history as a condition of being considered for employment.” Continue reading ›

A company that purchases tax liens in order to obtain tax deeds to properties sued Law Bulletin for breach of contract over a misprinted hearing date in a Take Notice, which the company alleged cost it $1 million when the circuit court denied the company’s tax deed application due to the misprint. Following a trial, the jury entered a verdict in favor of Law Bulletin and against the company finding that the company had not fully performed its obligations under the parties’ contract. The First District Appellate Court affirmed finding that the trial court had not committed an error in denying the company’s pre-trial motion for summary judgment or mid-trial motion for a directed verdict.

Every year, Wheeler Financial purchased hundreds of tax liens from the Cook County Treasurer’s Office at the annual auction to sell tax liens on properties with delinquent tax bills. Under the Illinois Property Tax Code, if the property owner fails to satisfy a tax lien by paying the amounts due within the applicable redemption period, the tax lien purchaser may obtain fee simple title to the property. To obtain title to the property, the tax lien purchaser must apply to the circuit court for a tax deed and publish a Take Notice in a newspaper giving the property owner certain information including the hearing date on which the petition for tax deed will be heard by the court.

Law Bulletin publishes these Take Notices in its newspaper, the Chicago Daily Law Bulletin. Wheeler Financial used the Law Bulletin exclusively to publish its Take Notices for 15 years, publishing between 1000 to 1600 Take Notices annually with the Law Bulletin during that time. In one instance, Law Bulletin misprinted the hearing date for the tax deed for a particular property. When the circuit court discovered that the wrong hearing date had been published in the Take Notice, it denied Wheeler Financial’s petition for a tax deed. Continue reading ›

In a 3-0 decision, the U.S. Court of Appeals for the Ninth Circuit ruled that Facebook users in Illinois can move forward with a class-action lawsuit challenging the company’s use of facial recognition technology. Facebook had argued that the court should not let the plaintiffs proceed on a class basis with claims that it violated the Illinois Biometric Information Privacy Act (often referred to a “BIPA”). The Ninth Circuit’s ruling in Patel v. Facebook affirmed the District Court’s decision to certify a class of Illinois Facebook users.

The BIPA is intended to protect the biometric privacy of Illinois citizens by imposing restrictions on the collection and storage of certain biometric information by private companies. One of the protections afforded by the law is the requirement that a company must obtain an individual’s written consent before collecting and storing any such biometric information.

The case stems from a class action complaint filed by three Illinois Facebook users on behalf of all Illinois Facebook users accusing the social media company of unlawfully gathering and storing its users’ biometric information, including through the use of facial recognition technology, without consent. Specifically, the suit targets a feature Facebook launched in 2010 called “Tag Suggestions” which uses facial recognition technology to build a “face template” of an individual from pictures uploaded to the site. The software builds these face templates by analyzing an individual’s face in uploaded photos and measuring various geometric data points on an individual’s face such as the distance between eyes, nose, and ears. Users are able to opt-out of the feature, and Facebook argued that it only builds face templates of Facebook users who have not opted-out and have the feature turned on. Continue reading ›

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