10-31-2024;; Beneficial Ownership by John Campbell, JD; Illinois Supreme Court Expands Wrongful Death Claims by Bradley Smith, JD and more
/Synopsis: What the heck is “Beneficial Ownership Information” and what is a “BOI Report”? Every U.S. company/LLC/corporation has to file this by January 1st
We are somewhat perplexed that this new federally mandated corporate reporting has not been more widely discussed in business and legal circles, yet most businesses throughout the country are required to comply by January 1, 2025. With less than 90 days before the reporting deadline, we wanted to be sure you, our subscribers, clients, and any friends or family with businesses are aware of this new layer of government red tape and avoid the potential penalties for non-compliance of up to $500/day.
Background and Legal Requirements:
The Corporate Transparency Act, enacted in 2021 to curb illicit finance and protect U.S. national security, requires many companies doing business in the United States to report information to the Federal government about their beneficial owners—in other words, the actual people who ultimately own or control them. The Financial Crimes Enforcement Network (FinCEN), a U.S. Treasury Department bureau, is implementing the law. The intended goal is to safeguard the financial system from illicit activity, counter money laundering and the financing of terrorism, which will advance national security. Secretary of the Treasury Janet L. Yellen explained “Corporate anonymity enables money laundering, drug trafficking, terrorism, and corruption. It harms American citizens and puts law-abiding small businesses at a disadvantage. Having a centralized database of beneficial ownership information will eliminate critical vulnerabilities in our financial system and allow us to tackle the scourge of illicit finance enabled by opaque corporate structures.”
Companies must report beneficial ownership information to FinCEN where:
a corporation or limited liability company (LLC) was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
a foreign company that was registered to do business in any U.S. state or Indian tribe by such a filing.
Filing has been made relatively simple, secure, and free of charge. Companies that are required to comply (“reporting companies”) must file their initial reports by the following deadlines:
Existing companies: Reporting companies created or registered to do business in the United States before January 1, 2024 must file by January 1, 2025.
Newly created or registered companies: Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.
Fortunately, the Beneficial ownership information reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information. Generally, reporting companies must provide four pieces of information about each beneficial owner:
name;
date of birth;
address; and
the identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State, local government, or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used. An image of the document must also be submitted.
The company must also submit certain information about itself, such as its name(s) and address. In addition, reporting companies created on or after January 1, 2024, are required to submit information about the individuals who formed the company (“company applicants”).
How do you get started? Call KCB&A at 312 756 1800 for help or you can view informational videos and webinars, find answers to frequently asked questions, connect to the contact center, and learn more about how to report at www.fincen.gov/boi.
We appreciate your thoughts and comments. This article was researched and written by John P. Campbell, JD | Managing Partner, Keefe, Campbell, Biery & Associates, LLC
Passafiume v. Jurak, 2024 IL 129761: Expanding Recoverable Damages to Wrongful Death Actions; Research and written by Bradley Smith, J.D.
Synopsis:
In a landmark ruling, the Illinois Supreme Court held in Passafiume v. Jurak that a plaintiff can recover damages for the loss of material services beyond the date of remarriage in a wrongful death case. This decision clarifies how damages for loss of household services are treated under the Illinois Wrongful Death Act, expanding potential recoveries for plaintiffs and removing previous limitations tied to remarriage.
Editor’s Comment:
The Passafiume ruling represents a significant expansion in the scope of recoverable damages under Illinois' Wrongful Death Act. By allowing the loss of material services to be compensated beyond remarriage, the decision alleviates concerns about remarriage diminishing the value of a claim. This case is a crucial reminder for defense attorneys to reassess their strategies when dealing with wrongful death cases, as the scope of potential damages has widened.
Background
In 2014, Lois Passafiume tragically passed away due to negligent medical treatment by Dr. Daniel Jurak. Lois’s husband, Paul Passafiume, brought a wrongful death action against Dr. Jurak and others. Paul sought damages for the loss of Lois’s financial support and material services, such as household chores. The defendants argued that any claim for loss of material services should be limited to the period before Paul’s remarriage in 2015, under the theory that such damages fall under the umbrella of loss of consortium.
The Court's Ruling
The Illinois Supreme Court ruled in favor of the plaintiff, holding that damages for loss of material services are not limited by remarriage. The court clarified that these damages are a part of the pecuniary losses recoverable under the Illinois Wrongful Death Act and are not part of a loss of consortium claim, which traditionally terminates upon remarriage. This decision reinforces the distinction between pecuniary losses, which include household services, and consortium losses, which are more focused on companionship and emotional support.
Key Implications for Legal Professionals
The decision in Passafiume v. Jurak has profound implications for wrongful death litigation in Illinois. First, plaintiffs can now claim damages for household and material services even if they remarry. This widens the scope of recoverable damages and may result in higher awards for plaintiffs in similar cases. For defense attorneys, the ruling requires a reassessment of how damages are calculated in wrongful death actions, especially when remarriage is a factor.
Practical Takeaways for Wrongful Death Claims
1. **Loss of Material Services**: This ruling confirms that loss of household services is compensable beyond remarriage, significantly impacting the calculation of damages in wrongful death cases.
2. **Distinction from Consortium Claims**: Lawyers must recognize the clear separation between pecuniary losses and loss of consortium, particularly when remarriage is involved.
3. **Enhanced Recovery Potential**: Plaintiffs in wrongful death cases can now pursue greater damages, and defense attorneys must be prepared to argue against expanded claims in light of this ruling.
Conclusion
The Illinois Supreme Court’s decision in Passafiume v. Jurak is a pivotal moment in wrongful death litigation, expanding the scope of recoverable damages under the Illinois Wrongful Death Act. For claims professionals handling such cases, it’s critical to understand the implications of this ruling, both in terms of damages strategy and the legal framework surrounding remarriage. If you have questions about this decision or need guidance on how it may affect your current cases, feel free to reach out for a consultation.
Please contact Bradley J. Smith, JD at bsmith@keefe-law.com if you would like to discuss this decision or its implications.
Trivia Corner:
This Edition’s Trivia:
Was actress Margaret Hamilton (who played the amazing role as the Wicked Witch of the West) injured during the filming of the Wizard of Oz? She was burned when one of the lifts that was supposed to drop her malfunctioned.
Was her stand-in Betty Danko also injured? Ms. Danko was injured twice. Reply if you need details.
How was Buddy Ebsen (later Grandpa in the Beverly Hillbillies) injured? He was to be the Tin Man—turns out he was allergic to the paint and had to pass on the role.
And while he didn’t appear in the movie, is Ebsen’s voice on the final soundtrack? Yep.
What medical problem help Jack Haley get the job as Tin Man?
This Week’s Trivia:
Who started the franchise known as Kentucky Fried Chicken?
Who worked with the owner of Kentucky Fried Chicken, until he opened a competing and successful fast food restaurant?
What was the “secret” to Kentucky Fried Chicken?
Is the “secret” known to the public?
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