The Third District Appellate Court answers some important questions concerning the priority of competing creditors’ rights in the assets of a common debtor and the nature of appellate jurisdiction in FirstMerit Bank v. McEnery, 2014 IL App (3d) 130231-U. There, a creditor obtained a $1.8M judgment against a defendant who had interests in several restaurant LLC ventures (the …
Tag Archives: charging order
All About Charging Orders – When the Judgment Debtor Is an LLC Member
Getting a judgment against an LLC member can trigger a high-anxiety response. That’s because the normal post-judgment collection rules set out in Code Section 2-1402 and Supreme Court Rule 277 don’t cleanly apply. Section 30-20 of the LLC Act (805 ILCS 180/30-20) states that a creditor’s exclusive remedy is to obtain a “charging order” against the LLC member’s …
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Illinois Court: LLC Member Can File Mechanics’ Lien Against Property Owned by That LLC
How meta is this fact pattern? Peabody-Waterside v. Islands of Waterside, LLC, 2013 IL App (5th) 120490, examines the distinction between LLC entity liability and an LLC member’s personal liability through the lens of a mechanics lien claim filed against an LLC by one of its own members. Recall that Illinois law recognizes a clear line …