Articles Posted in Fraudulent Conveyance

Jane Holloway was an employee of Oakridge Convalescent Home on Feb. 7, 2011. She filed a charge of discrimination in violation of the Illinois Human Rights Act (775 ILCS 5/1-101 et seq.) against Oakridge Nursing & Rehab Center LLC (“Oakridge Center”) who was the employer and the managing company of Oakridge Convalescent Home.

Oakridge Center received notice of the charge in the spring of 2011 and transferred substantially all of its assets for no consideration to Oakridge Healthcare Center, LLC (“Oakridge Healthcare”). Oakridge Healthcare became the new manager of Oakridge Convalescent Home. Holloway subsequently obtained an administrative judgment of $30,880.  When Oakridge Center chose not to satisfy the judgment, the State of Illinois filed a complaint against Oakridge Healthcare, as the successor of Oakridge Center to enforce compliance with Holloway’s judgment.

Oakridge Healthcare filed a motion for summary judgment; the circuit court granted it. The State of Illinois appealed and argued that it presented sufficient evidence to create material issue of fact that Oakridge Center transferred its assets for the fraudulent purpose of escaping Holloway’s judgment.

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