Trade Well Int’l v. United Central Bank

After the Bank foreclosed on the hotel housing Trade Well’s leased furnishings and started searching for buyers, Trade Well demanded the return of its property. The Bank refused. Trade Well sued. While the replevin action was pending, Trade Well’s attorney, Salem, filed a “Notice of Lien” on the hotel with the Sauk County Register of Deeds. Salem refused to withdraw the notice. The court held Salem in contempt of court and revoked his pro hac vice admission as a sanction, referred him for disciplinary action, and allowed the Bank to file a counterclaim, alleging slander of title and seeking damages, costs, attorney’s fees, and a declaratory judgment. The Seventh Circuit vacated the contempt order and imposition of sanctions. Meanwhile, Trade Well had not secured alternative representation and, due to its corporate status, was unable to appear without counsel. The district court dismissed Trade Well’s claims with prejudice and entered a default judgment against Trade Well on the Bank’s counterclaim. With Salem back as its representative, Trade Well moved to vacate the default judgments.The district court expressed skepticism about Trade Well’s efforts to find alternate counsel. The Seventh Circuit affirmed denial of the motion to vacate, noting Trade Well’s delay in bringing the motion and the district court’s credibility determinations. View "Trade Well Int'l v. United Central Bank" on Justia Law