Shiner v. Turnoy
- Summarized by Lars Fuller , BakerHostetler
- 8 years 11 months ago
- Case Type:
- Consumer
- Case Status:
- Reversed
- Citation:
- No. 14-2999 (7th Circuit, Mar 16,2017) Published
- Tag(s):
-
- Ruling:
- In a non-bankruptcy matter, 7th Circuit (J. Posner writing) reversed district court's (N.D. Illinois, E.D.) entry of summary judgment and directed entry summary judgment in favor of appellant. State court decision entered prior day (of which district court was unaware) fixed appellee's claim at the amount actually received ($149k), thus mooting allegation in second suit that appellant/transferor fraudulently reported to IRS that amount as income to appellee/transferee. Appellant's restrictive endorsement on check did not override delivery of check to appellant.
- Procedural context:
- Trial court entered summary judgment in favor of plaintiff, and defendant appealed to Seventh Circuit.
- Facts:
- Turnoy, an insurance broker, sold insurance to Shiner's in-laws for decades. Shiner, a successful lawyer in Chicago whose practice focused on tax and estate planning, demanded that Turnoy split with him the commissions on new policies on the life of Shiner's mother-in-law. Turnoy sent Shiner a check for $149k, which was about half the commissions that Turnoy had obtained. Insisting that $149k was too little, Shiner sued Turnoy for breach of contract. Shiner brought a separate action against Turnoy for tax fraud based on Turnoy filing a tax return reporting the $149k as income to Shiner, alleging it was fraudulent for Turnoy to do so when Shiner had refused to accept the $149k, so that Shiner could preserve his suit against Turnoy for more than $149k. "The district court, convinced by this very weak argument and unaccountably hostile to Turnoy, ruled in favor of Shiner and ordered Turnoy to pay Shiner damages of $16,000 for the alleged fraud." Turnoy appealed to the 7th Circuit.
- Judge(s):
- Posner, Sykes, Hamilton
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