Another Illinois Case Decides When an Asset Purchaser is Responsible for Liabilities as a Mere Continuation of the Seller

In our Risk Management Update of December 23, 2015, we discussed an Illinois case that had to decide when a successor entity purchasing the assets of its predecessor became liable for the debts of the predecessor. (“Mere Continuation” Doctrine Applied to Transfer Liability to Successor Entity). In that case, the issue was whether an intermediary who purchased the assets of a business was a mere “straw man” to cleanse the transaction to avoid the claim that the ultimate purchaser was responsible for the liabilities of the seller. In that case, the Illinois Appellate Court decided that the intermediary was a straw man and the successor could not escape liability for the predecessor entity’s obligations. (Advocate Financial Group, LLC v. 5434 North Winthrop, LLC, et al. Appellate Court of Illinois, Second District, No. 2-15-0144, November 23, 2015)     Read the article……………


Related Articles

Amendments that become effective Jan. 1, 2017 (IL)

2016 was another fertile year for Illinois legislation affecting condominium and common interest community associations. This is the second of

New Jersey Bankruptcy Court Finds Lien Held by Homeowners’ Association Is Subject to Modification

The United States Bankruptcy Court for the District of New Jersey recently overruled a creditor’s objection to the debtors’ proposed

The Emperor’s New Economic Loss Rule

For years, litigating breach of contract cases in Florida meant having to struggle with the array of cases dealing with