IFC Corporation v. Poly Tech Industries, Inc. is
a brief in
the Illinois Appellate Court discussing
the limitations, if any, on personal jurisdiction by contract in Illinois. IFC sued Poly Tech, a Georgia
company, in Illinois based on a contract providing for jurisdiction in whatever state
an assignee of the contract might have its principal place of business. Poly Tech argued that Illinois' choice of law
rules and IFC's failure to show that the contract jurisdiction provision had been signed required dismissal of the case against
Poly Tech. While the Appellate Court found that a companion choice of forum provision was enforceable in IFC v. Rieker Shoe,
2007 Ill. App. Lexis 1277, these issues will likely be resolved by the Illinois Supreme Court.
Mid-American Elevator Co. v. Norcon
involves construction of the Illinois Business Corporations Act. Mid-American
argued that my clients, Mr. & Mrs. Kaulas, were liable for the debts of Norcon,
Inc., and that they should be punished for contempt of court. My clients argued
that they were not liable, that the money which Mid-American was trying to
recover as property of Norcon did not belong to Norcon, and that the trial court
correctly found them not to be in contempt.
The Appellate Court of Illinois reversed the money judgment against Mr. &
Mrs. Kaulas and sent that part of the case back to the Circuit Court for trial. It
affirmed the Circuit Court in its determination that the Kaulas were not liable for
contempt.
Machinery Transports, Inc. v. Orix Credit Alliance, Inc.
involved the enforceability of business "forum selection clauses" in Illinois. A
"forum selection clause" provides that all litigation arising from a contract must be
conducted in a pre-determined location. My client Orix Credit Alliance, Inc.
entered a contract with MTI providing that all litigation would be carried out in
New York where Orix was based. MTI sued Orix in Illinois saying that if it were
required to litigate in New York it would be denied its day in court.
The Illinois Appellate Court found that the forum selection cause was
enforceable and that the lawsuit against my client would have to be conducted in
New York.