Chicago Bankruptcy Lawyer

Chicago Bankruptcy Lawyer - Case Examples

The biggest cases handled by the Firm:

1. Zepeda Construction Services, Inc. ("ZCSI"), a 35 million dollar per year minority construction company, the largest minority-owned construction business in Chicago, had ceased operations after defaulting on several City contracts. For a year, it did no work. It was sued by the City, by the bonding company, and by numerous subcontractors in state and federal court. The bonding company seized all of the company's books and records, contracts, and computers. Three of ZCSI's unions filed an involuntary chapter 7 case against it, Case No. 02 B 18501, and against the company's 100% shareholder, Sam Zepeda. Both debtors at first engaged an attorney who had no experience in chapter 11 cases to represent them. He converted the cases to cases under chapter 11. They were consolidated and were on the point of being dismissed when the attorney referred ZCSI to this Firm. Sam Zepeda voluntarily dismissed the personal chapter 11. This Firm then sought and obtained a return of all the contract books from the bonding company, enforced the automatic stay, sought to collect receivables, defended ZCSI against mechanics lien actions in state court, engaged in bankruptcy litigation, objected to proofs of claim, negotiated with the unions, and drafted a disclosure statement and plan. Ultimately, the disclosure statement was approved by the court and ZCSI's plan of reorganization was confirmed after a majority of the voting creditors approved. The confirmed plan was later modified as a liquidating plan approved by the court. The plan was substantially performed and the case was closed in early 2005.



2. Dr. and Mrs. Galo L. Tan who had numerous business interests came to the Firm in 1995. After analyzing their needs and the needs of their businesses, the Firm filed three related chapter 11 cases: Dr. Galo L. Tan, M.D., S.C. (for the doctor's practice), Geotrack, Inc. (another business owned by Dr. Tan), and Mr. and Mrs. Galo L. Tan (individuals with business interests). Dr. Tan was a shareholder and often officer or board member of numerous businesses. He and his businesses were being sued in various jurisdictions around the state. He also had various causes of action to be prosecuted in state and federal courts, and numerous proofs of claim to which he needed to object. Although we filed the Geotrack, Inc. chapter 11, there would have been a conflict of interest to represent that chapter 11 debtor, so we referred it out to another competent chapter 11 attorney, who brought it to a successful reorganization within a few years. The court saw no conflict of interest in representing Dr. Tan's professional practice, and this Firm brought that chapter 11 to a successful conclusion (confirmed plan, case closed) within a year. The remaining chapter 11 case, Dr. and Mrs. Tan, continued for years. The Firm engaged other attorneys to pursue fraud claims against certain defendants, and Dr. Tan was awarded several million dollars from that suit. Ultimately, this Firm withdrew as counsel and a subsequent attorney completed the successful reorganization.



3. United Bancard Systems, Inc. ("UBS"), a New York sub-ISO in the credit card industry, was sued in Chicago by Bankcard America, Inc. (BAI"), a lead ISO, for breach of contract. This Firm, working as co-counsel with Andre Filiopowicz, filed a counterclaim against BAI for breach of contract and against BAI's principals for RICO violations in the U.S. District Court. After a three-week jury trial in January 1996, at which presidents from four defrauded companies testified against BAI and the scheme perpetrated by its principals, the jury delivered a verdict in UBS's favor in the sum of $7.8 million ($1,115,000 based on breach of contract against BAI, the rest against the individuals based on RICO), and the judge entered judgment in favor of UBS on the jury verdict. Defendants filed a motion for a new trial. The trial judge stepped down from the bench. A new judge was appointed. The new judge (known for his negative attitude toward RICO counts) granted the new trial. At the second trial (two years later), the new judge strictly limited UBS in presenting evidence, barred certain jury instructions, and truncated the final arguments. Nevertheless, the jury delivered a verdict in UBS's favor in the amount of $4 million for breach of contract. The judge, however, would not enter judgment in that amount, and denied UBS any recovery whatever. The Firm and other attorneys appealed. The Seventh Circuit reversed the new judge's ruling, but reinstated only the original contract judgment of $1,115,000. No further appeals were taken.



4. Passport Software, Inc. ("PSI") creates and licenses software. It obtained a program from Real World, Inc. with a distribution agreement allowing Passport to enhance the software and to license the end product to other users. Do It Best, Inc., ("DIB") is a network of hardware stores. DIB purchased rights from PSI to sublicense the enhanced software to its members (hardware stores) across the country. The license was for 5 years, with a 5 year extension. At termination of the license, DIB was to return the software to PSI and to hand over the maintenance of the sublicensees to PSI. That did not happen. After ten years passed, DIB filed an action for declaratory judgment against PSI. PSI countersued for breach of contract, tortuous interference, fraud, and infringement of the Copyright Act, the Trade Secrets Act, and the Lanham Act. PSI is represented by this Firm as co-counsel with the firm of Donald L. Johnson. PSI is seeking damages in excess of $50 million. The case was scheduled for trial in 2005, but is now expected to be tried in 2006.