Paul Porvaznik – Business Litigator
Case Notes and Summaries of Recent Cases (State and Federal Courts – Illinois Focus)
Downs v. Rosenthal, 2013 IL App (1st) 121406, features an in-depth analysis of the difference between corporate vs. individual liability, the nature of post-judgment proceedings, and appellate procedure. Facts Plaintiff sued defendant LLC and its individual members (the Members) for breach of fiduciary duty, breach of contract and a declaratory judgment that plaintiff was a 2.5% stakeholder in the LLC. The trial …
Continue reading “LLC Members Not Liable On Void Judgment Entered Against LLC”
“Reverse piercing” involves the creditor of an individual shareholder attempting to reach assets of a corporation operated by that shareholder. Illinois reverse-piercing law is unsettled. Some cases allow the remedy; others don’t. When it is allowed, it usually involves a one-person corporation. In Fish v. Hennessy, 2013 WL 577012 (N.D.Ill 2013), the Northern District rejected a creditor’s …
Continue reading “Illinois ‘Reverse Piercing’ Law: Can You or Can’t You?”
The Citation to Discover Assets to a Third Party or “third-party citation” allows a judgment creditor to serve a citation on a third-party – a bank, for instance – who holds property of the judgment debtor and attach that property until the court orders the property released. See 735 ILCS 5/2-1402(f)(1). The third-party citation prohibits the citation …