Fahner v. Walsh

Fahner v. Walsh , 122 Ill. App.3d 481 (1984)

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The Illinois Appellate Court determine that the proper measure of resitutionary damages is the amount of profit made by the liable individual, and anyone who can show that they lost money as a result of the liable individual's conduct should be eligible to claim a portion of the restitution. Woolbright was found to be civilly liable for his participation in a pure pyramid scheme where individuals would pay $500 to the person on the top of a list, and have their name placed on the bottom. The top individual was crossed off, and the list would circulate to 4 new individuals. The trial court found that Woolbright was only liable for a penalty and restitution of the profits made from those who bought lists directly from him. The Appellate Court concluded that anyone who bought a list where Woolbright was involved should be eligible to claim a portion of his profits. Some people might not make claims against the restitution fund, allowing Woolbright to keep some of his ill-gotten gains, while others who were directly harmed by his conduct would not be able to claim against the fund.

This case can also be located online at: http://www.mlmlegal.com/legal-cases/Fahner_v_Walsh.php

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Published In: MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:State, 7th Circuit, Illinois | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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