Knowledge Center

Wednesday, September 09, 2015

HMB's David Ruskin Quoted in Tax Analysts about Illinois Qui Tam Suit Against Wineries

"Illinois Trial Court Judge Dismisses Qui Tam Suit Against Wineries"

Tax Analysts, September 9, 2015

An Illinois court September 3 dismissed a suit against out-of-state wine sellers and held that a state liquor law did not require the sellers to collect local sales and use taxes.

In Stephen B. Diamond PC v., an Illinois attorney filed a qui tam complaint in the Circuit Court of Cook County on behalf of the state alleging that a group of wine sellers violated the False Claims Act by failing to remit retailers' occupation taxes on sales of wine in the state.

Diamond has filed hundreds of similar suits, irking state and local practitioners and businesses along the way. Many of those cases have been assigned to Cook County Circuit Court Judge Thomas Mulroy. was originally assigned to Judge Mulroy, but was moved to Judge Margaret A. Brennan at the request of one of the defendants. The defendants then filed a motion to dismiss  on May 11. Brennan granted the motion  and dismissed the case on September 3.

David Ruskin of Horwood Marcus & Berk Chtd. said that Mulroy typically denies motions to dismiss in these types of cases and allows discovery to proceed.

"Going forward, the challenge is going to be 'how do we get these cases in front of either Judge Brennan or in front of a judge that will look at it in the same light that Judge Brennan did?'" Ruskin said.

He added that Brennan's decision to dismiss this challenge was a "breath of fresh air."

Click here to read the full article

Copyright 2015 Tax Analysts. Reprinted with permission.

NOTICE: Emailing an attorney shall not and does not create an attorney-client relationship between the attorney and users of this web site or any other party whatsoever. An attorney-client relationship is ONLY established through a written engagement, and only where doing so would comply with all applicable laws and ethical rules.

CONFIDENTIAL INFORMATION: Transmission of information on-line, over email, or through any electronic means can be unstable, unreliable and insecure. You should not send information or facts via e-mail relating to your legal problem or question. If you do not have an existing attorney-client relationship, your e-mail may not be privileged or confidential.

By clicking 'OK' below, you are agreeing to the terms of this web site.

Please fill out the form below and we'll send an email out about this page to a recipient of your choice.

Copy: Check here if you would like a copy of the email.