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In the dynamic landscape of condominium and homeowners’ associations (HOAs), board officers and directors are tasked with making crucial decisions to maintain the welfare of their communities. However, there are times when disputes arise, leading association members or condo owners to bring legal action against these leaders. At Lubin Austermuehle — the Business Litigators, we concentrate on defending condominium and HOA board officers and directors facing lawsuits under Illinois law. In this blog post, we will explore the unique legal challenges in Illinois and our legal team’s indispensable roles in safeguarding these community leaders.

Understanding Illinois Condo & HOA Governance

Illinois, like many states, has a comprehensive set of laws and regulations governing condominiums and homeowners’ associations. These laws define the roles and responsibilities of board officers and directors, as well as the rights and obligations of association members or condo owners. Compliance with these laws is essential to maintaining the harmony and functionality of these communities.

Common Legal Issues Faced by Board Officers and Directors in Illinois

Board officers and directors in Illinois can find themselves entangled in various legal disputes, including:

  1. Breach of Fiduciary Duty: Board members owe a fiduciary duty to the association members or condo owners. Allegations of mismanagement, conflicts of interest, or self-dealing can lead to claims of breaching this duty.
  2. Failure to Enforce Declarations and Bylaws: Ensuring the consistent enforcement of community rules and regulations is a crucial responsibility of board members. Failure to do so can result in legal actions by residents who believe their rights have been violated.
  3. Financial Mismanagement: Improper handling of association funds, budgetary issues, or a lack of transparency in financial matters can lead to allegations of financial mismanagement and legal consequences.
  4. Discrimination and Fair Housing Act Violations: Board officers must ensure that all residents are treated fairly and in compliance with fair housing laws. Allegations of discrimination can result in legal action under both state and federal laws.
  5. Contract Disputes: Board officers and directors often enter into contracts for services and maintenance. Disputes can arise if one party feels that the terms of the contract have not been fulfilled.

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Limited Liability Companies (LLCs) are a popular business structure known for providing liability protection to its members. However, conflicts and wrongdoing within an LLC can occur, leading to disputes among members. When an LLC suffers harm due to actions taken by its management or majority members, a derivative suit can be an effective legal recourse for members seeking to address these issues in Illinois.

Understanding LLC Derivative Suits: An LLC derivative suit is a legal action brought by one or more members on behalf of the LLC against a third party, typically the management or majority members, alleging wrongdoing or harm done to the company. In essence, it allows individual members to sue on behalf of the LLC when the company itself fails to take action against internal misconduct.

In Illinois, the procedures and rules governing derivative suits for LLCs are outlined under the Illinois Limited Liability Company Act (805 ILCS 180) and relevant case law.

Requirements for LLC Derivative Suits in Illinois: For a member to file a derivative suit on behalf of an LLC in Illinois, several key requirements must be met:

  1. Ownership Status: The member initiating the derivative suit must be a current member at the time of filing the lawsuit and must have been a member at the time the alleged wrongdoing occurred.
  2. Exhaustion of Remedies: Generally, the member bringing the suit must show that they made a demand on the LLC’s management to take action against the alleged wrongdoing but that the demand was either rejected or ignored, or waiting for a response would be futile.
  3. Injury to the LLC: The alleged misconduct must have caused harm or damage to the LLC, affecting its financial interests or causing other significant negative effects.
  4. Representation of LLC’s Interests: The member bringing the derivative suit must adequately represent the interests of the LLC and not have conflicting interests.

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Fiduciary duty law is a crucial legal concept that governs the relationships between individuals or entities entrusted with responsibilities to act in the best interests of others. In the state of Illinois, as in many other jurisdictions, fiduciary duty law plays a central role in various contexts, including business, finance, estate planning, and more. In this blog post, we will explore the key principles and applications of fiduciary duty law in Illinois.

What Is Fiduciary Duty?

Fiduciary duty is a legal obligation that requires an individual or entity, known as a fiduciary, to act in the best interests of another party, known as the beneficiary or principal. The fiduciary duty imposes a high standard of care, loyalty, and honesty on the fiduciary, ensuring they prioritize the beneficiary’s interests above their own.

Key Principles of Fiduciary Duty Law in Illinois

  1. Duty of Loyalty: Fiduciaries in Illinois are bound by a duty of loyalty, which means they must put the interests of the beneficiary above their own. They should avoid any conflicts of interest and disclose any potential conflicts when they arise.
  2. Duty of Care: Fiduciaries are required to act with the utmost care and diligence in managing the beneficiary’s affairs. This includes making informed decisions, conducting due diligence, and acting prudently.
  3. Duty of Good Faith: Fiduciaries must act in good faith when carrying out their responsibilities. This means they should make decisions honestly and without any ulterior motives.
  4. Duty of Disclosure: Fiduciaries must provide the beneficiary with all relevant information about the management of their affairs. This transparency helps the beneficiary make informed decisions.

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In the realm of consumer rights protection and legal representation, Lubin Austermuehle Law Firm stands out as a trusted and distinguished advocate for individuals who have fallen victim to car dealer consumer fraud in Illinois. When it comes to cases involving flood vehicles and rebuilt wrecks, their expertise and commitment to justice are second to none. In this blog post, we’ll explore why Lubin Austermuehle Law Firm is the ideal choice for handling car dealer consumer fraud cases in Illinois, particularly those involving flood vehicles and rebuilt wrecks.

Understanding Car Dealer Consumer Fraud

Car dealer consumer fraud is a serious offense that occurs when dealerships engage in deceptive practices, misrepresenting the condition or history of a vehicle to unsuspecting buyers. Whether it involves selling flood-damaged vehicles, rebuilt wrecks, or any other misrepresented automobiles, the consequences can be financially devastating and pose significant safety concerns for consumers.

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Illinois is home to a vibrant business landscape, with partnerships being a popular choice for entrepreneurs and professionals seeking to collaborate. However, like any business relationship, disputes can arise in partnerships. When facing a partnership dispute in Illinois, having the right legal representation is crucial. In this blog post, we’ll explore the best lawyers to handle Illinois partnership disputes, guiding you toward skilled professionals who can help you navigate these complex legal waters.

  1. Business Litigation Experience: When dealing with a partnership dispute, you want a lawyer with extensive experience in business litigation. Look for attorneys who concentrate in resolving complex business disputes, including those related to partnerships. They should have a deep understanding of Illinois business laws, contract law, and the intricacies of partnership agreements.
  2. The ADR Alternative: Alternative dispute resolution (ADR) methods, such as mediation and arbitration, can be effective ways to resolve partnership disputes without going to court. Seek out lawyers who are well-versed in ADR processes and can guide you through negotiation and settlement discussions.
  3. The Experienced Negotiator:Effective negotiation is often the key to resolving partnership disputes amicably. Lawyers skilled in negotiation techniques can help you reach favorable settlements, saving time and money in the long run.
  4. The Seasoned Corporate Attorney:Many partnership disputes involve complex corporate structures and governance issues. Lawyers with a background in corporate law can provide valuable insights into the intricacies of partnership agreements and the rights and responsibilities of partners.
  5. The Local Legal Expert: Partner with attorneys who have a deep understanding of Illinois state laws and regulations, as well as familiarity with local court procedures. Local knowledge can be invaluable when navigating the Illinois legal system.
  6. The Collaborative Problem Solver:A lawyer who encourages collaboration and teamwork can often help facilitate smoother resolution processes. Look for professionals who prioritize finding solutions that benefit all parties involved.
  7. The Seasoned Litigator: In some cases, litigation becomes unavoidable. Lawyers with strong litigation skills can represent your interests effectively in court, advocating for your position and protecting your rights.
  8. The Reputation Matters: Investigate lawyers’ reputations within the legal community. Seek referrals or read reviews and testimonials to gain insights into their track record of successfully handling partnership disputes.
  9. The Client-Centered Advocate: Choose attorneys who prioritize your needs and concerns. Effective communication and a client-centered approach can make the legal process more manageable during the stress of a partnership dispute.
  10. The Problem-Solving Team: In complex partnership disputes, assembling a legal team with diverse skills and areas of expertise can be advantageous. Your lawyers should collaborate seamlessly to address all aspects of your case.

Navigating partnership disputes in Illinois demands legal expertise, negotiation skills, and a deep understanding of state laws and regulations. The best lawyers to handle these disputes are those who combine these qualities and prioritize finding effective, efficient, and mutually beneficial resolutions. With the right legal team by your side, you can protect your interests and work towards a favorable outcome in your Illinois partnership dispute. Continue reading ›

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Shareholder derivative lawsuits can be particularly impactful for closely held companies in Illinois. These lawsuits provide an avenue for shareholders to address wrongdoing by officers, directors, or majority shareholders, and to protect the company’s best interests. In this blog post, we’ll explore the best way to prosecute a shareholder derivative lawsuit for a closely held Illinois company, considering the unique dynamics of such entities.
  1. Understand the Closely Held Company Dynamics:Closely held companies typically have a limited number of shareholders, and often, those shareholders are actively involved in the company’s management. Understanding the close-knit nature of these businesses is essential when prosecuting a derivative lawsuit. Recognize that personal relationships and conflicts of interest may play a significant role.
  2. Engage Experienced Local Counsel:Given the specific nuances of Illinois corporate law and the potential complexities of closely held companies, it is crucial to engage experienced local counsel. Seek attorneys with a track record in closely held corporate litigation, who understand the intricacies of Illinois business statutes and court procedures.
  3. Preserve Evidence and Documents:As with any derivative lawsuit, preserving evidence and relevant documents is paramount. Ensure that you have access to all necessary corporate records and financial documents that may support your claims.
  4. Evaluate Your Standing:Verify that you have standing to bring a derivative lawsuit as a shareholder of the closely held company. This may involve confirming that you were a shareholder at the time of the alleged wrongdoing and that you have maintained your shares throughout the legal process.
  5. Thoroughly Investigate the Allegations:Conduct a thorough investigation into the allegations of wrongdoing within the company. It’s essential to gather evidence and build a strong case that demonstrates how the misconduct has harmed the company and its shareholders.
  6. Attempt Resolution Through Negotiation or Mediation:Given the close relationships in closely held companies, it may be worthwhile to explore options for resolution through negotiation or mediation before proceeding with litigation. Engaging in discussions with the parties involved may lead to an amicable solution that benefits all stakeholders.
  7. Draft a Well-Pleaded Complaint:Create a well-pleaded complaint that clearly outlines the allegations, the harm suffered by the company, and the legal basis for your claims. A well-drafted complaint is crucial to moving the case forward.
  8. Consider the Impact on Company Operations:Recognize that a shareholder derivative lawsuit can disrupt business operations and relationships within a closely held company. Weigh the potential benefits of the lawsuit against its impact on the company’s ability to function effectively.
  9. Stay Committed and Persistent:Legal proceedings for closely held companies may be emotionally charged and protracted. Stay committed to the process, work closely with your legal counsel, and be prepared for potential challenges.
  10. Protect the Interests of Minority Shareholders:If you are a minority shareholder, emphasize the importance of protecting the interests of minority shareholders during the litigation process. Ensure that any potential settlements or resolutions are equitable to all shareholders.

Prosecuting a shareholder derivative lawsuit for a closely held Illinois company requires a thorough understanding of the unique dynamics and challenges that these businesses present. By following the steps outlined above and working closely with experienced local counsel, you can navigate the complexities of closely held corporate litigation and strive to protect the best interests of the company and its shareholders.

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In the ever-evolving world of technology and the internet, antitrust issues have become increasingly prevalent. One of the most notable cases in recent memory involves Google and its alleged anticompetitive practices in the app distribution market. The case brought against Google by Epic Games, the creator of the popular game Fortnite, has garnered significant attention and ended with an antitrust loss for the tech giant. In this blog post, we’ll delve into the details of the Epic Games case and discuss what this loss means for Google and other tech giants.

The Epic Games Case

Epic Games filed a lawsuit against Google in August 2020, alleging that the company engaged in anticompetitive behavior by monopolizing the distribution of Android apps through the Google Play Store. The crux of Epic Games’ argument was that Google’s restrictive policies and the 30% commission fee it charged to developers for in-app purchases were stifling competition and innovation in the app market.

In July 2021, a U.S. District Judge ruled in favor of Epic Games, finding that Google had indeed violated antitrust laws by maintaining its monopoly over the Android app distribution market. The judge’s decision was a significant blow to Google and has far-reaching implications for the tech industry as a whole.

Implications of the Antitrust Loss

  1. Increased Scrutiny on Tech Giants: Google’s antitrust loss in the Epic Games case is part of a broader trend of increased scrutiny and legal action against major tech companies. This case, along with similar cases involving Apple, Facebook, and Amazon, highlights growing concerns about the dominance and market power of these tech giants.
  2. Potential Changes in App Distribution: The ruling against Google could lead to changes in how app distribution platforms operate. It may encourage alternative app stores to emerge, offering developers and consumers more choice and potentially lower commission fees. This could foster greater competition in the app market.
  3. Impact on Google’s Business Model: Google’s revenue model heavily relies on advertising and its app ecosystem. The loss in the Epic Games case could force Google to reconsider its commission structure for app developers, potentially impacting its bottom line.
  4. Precedent for Future Cases: The ruling against Google sets a legal precedent that could be used in future antitrust cases against tech companies. It strengthens the argument that dominant players in the industry should not use their position to stifle competition unfairly.
  5. Calls for Regulatory Reform: The Epic Games case has reignited calls for regulatory reform in the tech industry. Policymakers and regulators may use this case as evidence that existing antitrust laws need to be updated to address the unique challenges posed by the digital economy.

Google’s antitrust loss in the Epic Games case serves as a reminder that even tech giants are not immune to legal challenges and regulatory scrutiny. This case highlights the ongoing debate surrounding the power and influence of major tech companies in today’s digital landscape. As the tech industry continues to evolve, it is likely that we will see more antitrust cases and regulatory actions aimed at promoting competition and innovation while preventing anticompetitive behavior. The outcome of these cases will shape the future of the tech industry and its impact on consumers and developers alike.

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Limited Liability Companies (LLCs) have become a popular choice for business owners due to their flexibility and liability protection. However, in the realm of LLCs, disputes among members can arise, leading to conflicts and, in some cases, member oppression. In the state of Illinois, LLC member oppression is a serious issue that demands attention and understanding to navigate legal complexities and seek appropriate remedies.

Understanding LLC Member Oppression: LLC member oppression refers to situations where the majority members of an LLC engage in conduct that unfairly prejudices the rights or interests of minority members. These oppressive actions can take various forms, such as excluding minority members from decision-making, withholding crucial information, mismanagement of company affairs, or diverting opportunities that could benefit the LLC.

In Illinois, LLCs are governed by the Illinois Limited Liability Company Act (805 ILCS 180). This act provides a legal framework outlining the rights and responsibilities of LLC members and offers avenues for minority members who face oppression within the company.

Rights of LLC Members in Illinois: Under Illinois law, LLC members possess certain rights, including the right to access company records, participate in management decisions (unless otherwise specified in the operating agreement), and the right to fair treatment without discrimination or oppression. However, these rights can sometimes be compromised when majority members wield their power to the detriment of minority stakeholders. Continue reading ›

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In today’s digital era, online reviews wield substantial influence, helping consumers make informed decisions about products, services, and businesses. However, the power of user-generated reviews can sometimes lead to contentious situations, particularly when individuals or entities face accusations of internet libel due to their posted reviews. Understanding the defense mechanisms available to individuals posting online reviews is essential in safeguarding their rights while responsibly exercising their freedom of expression.

The Impact of Online Reviews:

Online reviews play a pivotal role in consumer decision-making. They offer insights, opinions, and firsthand experiences that influence potential customers’ perceptions. However, negative reviews can occasionally lead to accusations of libel if they’re perceived as defamatory or damaging to a business or individual. Continue reading ›

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In a dynamic world where the nature of work is evolving rapidly, the Illinois Freedom to Work Act stands as a beacon of hope for both employees and employers alike. This legislation, enacted in 2017, brought about significant changes in Illinois’ labor laws, fostering a more flexible and worker-friendly environment. In this blog post, we will delve into the key provisions of the Illinois Freedom to Work Act and explore how it has reshaped the employment landscape in the state.

Understanding the Illinois Freedom to Work Act

The Illinois Freedom to Work Act is a landmark piece of legislation designed to empower workers and enhance economic freedom. It eliminates the use of non-compete agreements for low-wage employees, providing them with the opportunity to seek employment without restrictions after leaving a job. The act was signed into law by then-Governor Bruce Rauner and has since created a more level playing field for employees in Illinois.

Key Provisions of the Act

  1. Non-Compete Agreements Limited: One of the primary aims of the Illinois Freedom to Work Act is to restrict the use of non-compete agreements for low-wage employees. This means that workers in lower-income positions are no longer bound by these restrictive covenants that prevented them from pursuing similar roles in the same industry after leaving their current job.
  2. Minimum Wage Threshold: To be considered a low-wage employee under the act, the individual’s earnings must not exceed the greater of either the applicable federal, state, or local minimum wage. This ensures that the legislation targets those who are most vulnerable to exploitation in the labor market.
  3. You must be given 14 days to review the agreement and told you have an opportunity for lawyer to review of the agreement.
  4. Protecting Employee Rights: The Act empowers workers by allowing them to challenge non-compete agreements in court. If an employer enforces an invalid non-compete agreement against a low-wage employee, the employee can seek legal remedies, including injunctive relief and damages.

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Contact Information
Chicago Office
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Phone: 630-333-0333
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Phone: 630-333-0333 Please direct all mail correspondence to our Oakbrook Terrace address.
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