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MATTER OF LIQUIDATION OF MEDCARE HMO, INC.

No. 1-95-2578.

689 N.E.2d 374 (1997)

294 Ill. App.3d 42

228 Ill.Dec. 502

In the Matter of the LIQUIDATION OF MEDCARE HMO, INC. (James Schacht, Acting Director of Insurance of the State of Illinois, as Liquidator of MedCare HMO, Inc., Plaintiff-Appellant, v. Katten Muchin & Zavis, Defendant-Appellee).

Appellate Court of Illinois, First District, Third Division.

December 31, 1997.

Attorney(s) appearing for the Case

Barry Gross, Cary E. Donham, Shefsky Froelich & Devine Ltd., Chicago, for Plaintiff-Appellant.

Amy A. Hijjawi, Scott A. Semenek, Katten Muchin & Zavis, Chicago, for Defendant-Appellee.

Justice GORDON delivered the opinion of the court:

James Schacht, Acting Director of Insurance for the State of Illinois (the Director),1 as liquidator of the estate of MedCare HMO, Inc. (Medcare), an Illinois-licensed health maintenance organization (HMO), brought this action to recover attorney's fees paid to the law firm of Katten Muchin & Zavis (Katten Muchin). The Director argued that the fees were recoverable as a voidable preference...

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