COVID-19 Update

The spread of the COVID-19 coronavirus continues to be monitored closely by the Illinois Judicial Branch. Reliable information is critical during times like these.  Two sources of verifiable information on COVID-19 are:  the Illinois Department of Public Health and the Centers for Disease Control. Please remember to take the following precautions:  wash your hands thoroughly, cover your cough with your elbow or sneeze with a tissue, and stay home if you are feeling sick.

PLEASE NOTE: Many Illinois courts are open for emergencies only. Additionally, the Illinois Supreme Court has issued extensions for deadlines in the Appellate Court and Supreme Court. Please contact the clerk in your county or appellate district for more information.

Are Personal Injury Damage Awards Taxable?

Often people wonder whether any money recovered from a personal injury lawsuit is subject to state and/or federal taxation. The answer is…it depends. There are a multitude of factors that will help you understand how personal injury settlements are taxed.

• The type of monetary damages obtained via a settlement or awarded via a jury trial

• Whether you have deducted certain medical expenses from your taxes that relate to the bodily injuries you endured from the accident

• Whether you were awarded punitive damages

Generally, money awarded from a personal injury settlement or jury verdict is not subject to taxation. However, this only applies to the compensatory damages you receive as restitution for the expenses incurred as a result of your bodily injuries or physical illness. The rationale for generally excluding compensatory damages is that these are paying you back for the damages you were forced to incur.

In most cases punitive damages are subject to taxation. Punitive damages are paid by a defendant as a form of punishment when it is determined that their conduct was especially offensive. The objective of this type of award is to effectively "make an example" of the defendant and hopefully deter other individuals from engaging in similar conduct.

How is COVID-19 Affecting the Court System?

Courts throughout the country are shutting down, postponing a case load of trials. Those that haven't shuttered all together are generally implementing strict protocols to keep people safe.

Check out us.courts.gov to keep track of various federal court orders.  A few examples include:

• In the U.S. District Court for the Northern District of Illinois, which includes Chicago, proceedings are being postponed, with filing deadlines being extended accordingly.

• The U.S. Supreme Court justices will work from home. Filing deadlines have not been extended.

• As of March 17th, the Ninth Circuit has closed to the public, and oral arguments are being determined on a case-by-case basis, in some cases holding argument via telephone or video. Filing deadlines will be extended on an “as needed" basis.

Of course, these are just a few examples of the various approaches federal courts are using.  This is a developing situation with many unknown answers at the moment. 

Clarification about Appeals

A popular misconception is that cases are always appealed. A losing party often does not have an automatic right of appeal. There usually must be a legal basis for the appeal—an alleged material error in the trial—not just the fact that the losing party didn’t like the verdict.

In a civil case, either party may appeal to a higher court. In a criminal case, only the defendant has a right to an appeal in most states.

An appeal is not a retrial or a new trial of the case. The appeals courts do not usually consider new witnesses or new evidence. Appeals in either civil or criminal cases are usually based on arguments that there were errors in the trial’s procedure or errors in the judge's interpretation of the law.

Hannafan Rated Again as Illinois SuperLawyer

Blake Hannafan has once again been selected as an Illinois SuperLawyer.  SuperLawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement.

Super Lawyers selects attorneys using a patented multiphase selection process. Peer nominations and evaluations are combined with independent research. Each candidate is evaluated on 12 indicators of peer recognition and professional achievement. Selections are made on an annual, state-by-state basis.

Staying Clear of Holiday-related Lawsuits

Sharing in the holiday season and festivities with family, friends and co-workers is all part of the celebration.  Deck the halls of your corporate office?  Hosting employee holiday parties with food, music and alcohol?  Sometimes, however, these activities can create legal liability for employers, particularly public entities.  Here are a few tips to keep in mind without spoiling employees’ holiday fun.

• Workplace and workspace decorations – avoid the appearance of endorsing one religion over another.  It is prudent to use employers who wish to decorate the workplace should use non-religious, winter themed decorations such as snowflakes, snowmen, candy canes, holly, and gingerbread houses.

• Holiday gift exchange – please remind employees to select gifts appropriate for the workplace.  Employees should be discouraged from buying items that contain profane, graphic, or inappropriate content.  A very modest limit on the cost of such gifts should be established, such as $10 or $15.

• Individual holiday gifts - some employees may choose to give individual holiday gifts to coworkers. Some employees may see selective gift giving as signs of discrimination or retaliation.  Aside from any sort of legal claims, selective gift giving may also create a tense workplace environment where employees’ feelings are hurt.  Employers can create and enforce policies that require employees to exchange gifts outside of the workplace during non-work hours.

• Holiday apparel and accessories - some employees may want to wear holiday apparel or accessories.  Prohibiting employees from wearing holiday themed apparel may give rise to claims of violation of free speech and religious expression.  Nevertheless, employers do have the right to make sure that any holiday apparel complies with internal dress code policies or standards of professionalism.

Best Lawyers in America Selects Hannafan & Hannafan as Top Law Firm

First published in 1983, The Best Lawyers in America has used the same tried and true peer review process consistently for 36 years. While the scope and scale of this publication has dramatically grown over the past three decades, the core mission of Best Lawyers to highlight the top legal talent in America has remained the unchanged. The firm Hannafan & Hannafan has been selected by peers for inclusion in the 26th Edition of The Best Lawyers in America for the company’s stellar work in Beth-the-Company Litigation and Commercial Litigation.

Tips to Avoid Trust Litigation

Similar to other court cases, trust litigation can be costly and take several months or longer to resolve. So, it’s best to try to take the necessary steps to minimize the likelihood of trust litigation. If you are a trustee, it is important to carry out your duties as a trustee properly. If you are the trustor, it is key to create your trust, so there is no basis for challenging it. Be sure and make the trust agreement as clear as possible without room for varied interpretation. This is an area where the Hannafan attorneys can help.

Defending Breach of Contract Claim

Blake Hannafan was lead counsel in a three-week jury trial in the United States District Court for the District of Massachusetts before Judge Allison Burroughs.  Plaintiff 600 lb Gorillas, Inc. brought this lawsuit against Defendants Fieldbrook Foods Corp. and Mister Cookie Face, LLC where the plaintiff alleged that the defendants failed to manufacture ice cream for Gorillas’ ice cream sandwiches to the agreed-upon specifications.  Gorillas’ claims included breach of contract, breach of fiduciary duty, and fraudulent misrepresentation, seeking damages in excess of $13 million.  On behalf of its clients, Hannafan & Hannafan filed counterclaims for breach of contract and promissory estoppel.  The jury awarded Fieldbrook Foods and Mister Cookie Face every penny they asked for (over $270,000), and the plaintiff was awarded $725,000.

What if you were injured in a car accident?

How do you calculate your injury damages?  An attorney can determine the value of your claim, examining factors of total medical bills, whether or not you missed work, the fault of the injury, and how the accident happened.  The result is a claim review estimate.

Auto collisions are one of the most prevalent areas of personal injury cases.  Common vehicle injuries are:

• Whiplash

• Spinal cord or head injury

• Fatal accidents

• Wrongful death

If you were hurt in an accident, be sure to contact an attorney, such as Hannafan & Hannafan, who practices personal injury law.