Paul Porvaznik – Business Litigator
Case Notes and Summaries of Recent Cases (State and Federal Courts – Illinois Focus)
In Deschepper v. Midwest Wine and Spirits,2015 WL 1433230, the Northern District considered the necessary pleading allegations for claims based on the Illinois Wage Payment and Collection Act (“IWPCA”), common law fraud and successor liability in an employment dispute involving former salespersons of a liquor wholesaler. The employer (and their principals) defendants moved to dismiss under …
Continue reading “Pleading Fraud ‘On Information And Belief’ Fails Rule 9 Specificity Test”
Corporate successor liability’s focal point is whether a purchasing corporation (Company 2) is responsible for the purchased corporation’s (Company 1) pre-sale contract obligations. It’s an important question because the Company 1 will usually have no assets after the purchase. Creditors of Company 1 will then try to pin liability on Company 2. The general rule in Illinois …
Continue reading “Corporate Successor Liability in Illinois: the Rule and Exceptions”
In Illinois, a corporation is a legal entity that exists separate and apart from its shareholders, officers and directors. In fact, a major purpose of incorporating is to insulate yourself from personal liability. This liability-reducing function of corporations does have its limits though. If someone is abusing the corporate form, a court can disregard the …