In July 2013, the Third District appeals court affirmed dismissal of a law firm’s (Firm) negligence suit against a bank that charged back the firm’s account after a $350,000 check deposited by the Firm turned out to be counterfeit. Rejecting the Firm’s negligence claim, the Court found that the terms of the parties’ account agreement and the specific …
Author Archives: PaulP
The Negligent Misrepresentation Exception to Economic Loss Rule: The Information v. Tangible Product Dichotomy
The economic loss rule bars recovery in tort where the claim is essentially one for breach of contract. Lincoln Park West Condominium Association v. Mann, Gin, Ebel & Frazier, 136 Ill.2d 302, 307 (1990)(economic loss rule generally). “Economic loss” means (i) damages for inadequate value, (ii) costs of repair and replacement of the defective product, …
General Contractor’s Bankruptcy Filing Means Extra Time For Subcontractor To File Lien Suit
Section 34 of the Illinois Mechanics Lien Act (770 ILCS 60/34) presents a way for an owner to quickly dispose of a contractor’s lien recorded against his/her property. Typically, the owner serves the Section 34 notice and the contractor must either sue to foreclose its lien within 30 days or it loses the lien. But what if after …