Justia Business Law Opinion Summaries

Articles Posted in Supreme Court of Illinois
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Plaintiffs purchased a recreational vehicle (RV) from Vacationland for $26,000.25. When it leaked during a rainstorm, they brought it in for repair. When it leaked again, causing extensive damage, they brought it back. A little more than two weeks after they dropped it off the second time and without a timetable for when the vehicle would be repaired, they told the seller that they no longer wanted the RV and asked for their money back. Plaintiffs sued, citing revocation of acceptance under the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act, 15 U.S.C. 2310(d); breach of implied warranty of merchantability under the Magnuson-Moss Act; revocation of acceptance and cancellation of contract under Illinois’s adoption of the Uniform Commercial Code; and return of purchase price under the UCC. Defendant argued that plaintiffs’ failure to give it a reasonable opportunity to cure was fatal to their claims. The circuit court granted the defendant summary judgment. The appellate court affirmed. Plaintiffs sought review of the revocation of acceptance claim under the UCC (810 ILCS 5/2- 608(1)(b)). The Illinois Supreme Court reversed. The plain language of subsection 2-608(1)(b) does not require that the buyer give the seller an opportunity to cure a substantial nonconformity before revoking acceptance. View "Accettura v. Vacationland, Inc." on Justia Law

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Citibank provided sales financing to Illinois retailers who offered customers the option of financing their purchases, including the amount of Illinois tax due on the purchases. Citibank originated or acquired consumer charge accounts and receivables from the retailers on a non-recourse basis. When a customer financed a purchase using that account, Citibank remitted to the retailer the amount the customer financed, which included some or all of the purchase price and the sales tax owed based on the selling price. The retailers then remitted the sales tax to the state. Under the agreements between Citibank and the retailers, Citibank acquired “any and all applicable contractual rights relating thereto, including the right to any and all payments from the customers and the right to claim Retailer’s Occupation Tax (ROT) refunds or credits.” Citibank filed a claim for tax refunds under 35 ILCS 120/6 for ROT taxes paid through retailers on transactions that ultimately resulted in uncollectible debt. The Department denied Citibank’s claim. The Illinois Supreme Court reinstated the denial, noting the legislature’s clearly expressed preference in the statutory framework for reporting, remission, and refund only through the retailer. Sophisticated lending institutions no doubt anticipate the eventuality of default and can order their commercial relationships accordingly. View "Citibank, N.A. v. Illinois Department of Revenue" on Justia Law

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Aspen American Insurance sued, claiming that the roof of a Michigan warehouse owned by Interstate had collapsed, causing the destruction of goods owned by Aspen’s insured, Eastern Fish. The complaint alleged that Interstate “maintain[s] a facility in or near Chicago.” Interstate acknowledged that it owns a warehouse in Joliet, Illinois. Interstate, an Indiana corporation, unsuccessfully moved to dismiss the complaint for lack of personal jurisdiction. The appellate court affirmed. The Illinois Supreme Court reversed. Aspen did not show that Interstate’s contacts with Illinois render it at home in that state under subsection (c) of the long-arm statute, 735 ILCS 5/2-209. While a foreign corporation must register with the Secretary of State and appoint an agent to accept service of process in order to conduct business in Illinois, absent any language to the contrary, the fact that a foreign corporation has registered to do business does not mean that the corporation has waived due process limitations on the exercise of personal jurisdiction, including with respect to cases that are completely unrelated to the corporation’s activities in Illinois. View "Aspen American Insurance Co. v. Interstate Warehouseing, Inc." on Justia Law