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Company Requests Dismissal of 2 Counts in Lawsuit Against Channahon

A company has filed to withdraw two counts in a lawsuit of the RTA and city of Chicago against the village of Channahon and city of Kankakee.

In an order entered into court Monday, Inspired, a company that helps attract businesses to villages under the existing tax rebate program in the state of Illinois, has filed to withdraw two counts in a and city of Chicago and city of Kankakee.

The movement has two prongs. First, it moves to remove the complaint regarding Freedom of Information Act requests that have long since been dropped by both the RTA and city of Chicago.

"Various entities who filed FOIA requests withdrew their requests," Scott Browdy, attorney partner with the Ryan Law firm, who is representing Inspired.

"Last spring and summer, Channahon and Kankakee received some additional FOIA requests ..." Browdy said. "We filed suit to block those requests and that’s the suit that was pending until yesterday. The judge never issued a ruling, before she could issue a ruling they withdrew the requests."

The second part of the movement on the case was involving whether or not the discussion surrounding the lawsuit was indeed hurting the case. For example, while the defendants in the case believe, as Ryan does on behalf of its client Inspired, that the tax agreements are valid and enforceable, the RTA and Chicago do not. Those agreements have some Chicago businesses routing their sales through satellite offices in municipalities with low sales tax rates, like Channahon. Any communication they make in public regarding that could hurt the case, Ryan argued.

"The judges ruling did not touch that," Browdy said. "She did not rule at all if the agreements are valid or not. She did not see an actual controversy she could rule on."

The judge dismissed both counts without prejudice, meaning Ryan could file again within 28 days.

"The law is on our side and we think that we are going to prevail," Browdy said.

All of the movement on the case Monday took place in Will County. Browdy said there is addition discussion about where this case should be heard.

"Which room are we going to fight that battle in," Browdy said.

He said the Will County location makes more sense because the municipalities and businesses in question are both in Will County.

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