Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—NDIll: Plaintiff Had Right to Jury Trial under Illinois Consumer Fraud Act, (Mar 12, 2013)

By Jody Coultas, J.D.

A condominium purchaser had the right to have her Illinois Consumer Fraud and Deceptive Business Practices Act (CFA) claims against Trump Chicago Managing Member LLC submitted to a jury, according to the federal district court in Chicago (Goldberg v. 401 North Wabash Venture LLC, March 11, 2013, Eve, A.).

The purchaser alleged that Trump Chicago misrepresented that the condo purchase included ownership and control of condominium common elements and the hotel property and business. Trump Chicago moved to strike the purchaser’s demand for a jury trial, arguing that the CFA does not provide a right to a jury trial and the punitive damages claims were frivolous.

The Seventh Circuit employs a two-part test to determine the right to a jury trial. First, the court must “compare the . . . action to 18th-century actions brought in the courts of England prior to the merger of the courts of law and equity.” Second, the court assesses the remedy sought and whether it is legal or equitable in nature. A claim for equitable relief is not entitled to a jury trial.

Because the purchaser’s allegations concerning actual damages were sufficiently plead, the court found that the purchaser plead claims for more than equitable relief. The purchaser’s allegations included loss of deposit money, interest, the value of the condos, mental suffering, and more.

The purchaser’s claims for punitive damages were not frivolous, according to the court. Trump Chicago argued that the purchaser had no actual damages and the facts did not justify an award of punitive damages. As noted above, the purchaser sufficiently pled compensatory and monetary damages. The purchaser also stated a plausible claim that Trump Chicago acted with fraud, actual malice, deliberate violence or oppression, or willfulness, or with such gross negligence as to indicate a wanton disregard for the rights of others, as required to warrant punitive damages.

The CFA provides the right to a jury trial, according to the court. Although Illinois courts do not recognize a right to a jury trial under the CFA, the right to a jury trial in this case hinged on federal law. A right to a jury trial in federal court may exist even where no such right exists in state court. The purchaser sought both legal and equitable claims and CFA claims resemble a common law fraud claim with the additional requirement that a plaintiff prove intent to deceive or reasonable reliance on a misrepresentation. Because the CFA was analogous to 18th century actions at law and the purchaser sought a legal remedy, the CFA claims would be tried before and submitted to a jury.

The case is No. 09 C 6455.

Attorneys: Shelly Byron Kulwin (Kulwin, Masciopinto & Kulwin, LLP) for Jacqueline Goldberg. Stephen Novack (Novack and Macey LLP) for 401 North Wabash Venture LLC.

Companies: 401 North Wabash Venture LLC; Trump Chicago Managing Member LLC

Cases: StateUnfairTradePractices IllinoisNews