Mautino officially took office Jan. 1 in a position that pays $152,000 per year.

Prior to his appointment, Mautino, 53, had served in the House for 24 years. He became a deputy majority leader in 2011. He served 18 years on the Legislative Audit Commission before resigning from that panel last summer to apply for the auditor post.

Soon after his appointment, questions began to surface about his campaign expenditures, including fuel and repair expenditures, which reportedly topped $200,000 in almost 11 years.

The group's report, "The Financial State of Illinois," says  “budgeting and accounting gimmicks” are used to hide what an official balance sheet looks like.

Specifically, it says the state is hiding $8.1 billion in pension debt. Further, the state has $213 billion in bills, but only $26 billion in revenue available to pay them. 

Illinois has been without a state budget for the past year, as Democrats and Republicans have been unable to reach a compromise on a spending plan. 

Two weeks ago, the Democrat-led House passed a spending plan for the 2017 fiscal year beginning July 1 without Republican input, abruptly stopping debate and passing the plan 63-53. 

Republican Gov. Bruce Rauner threatened to veto that version of the proposed budget, which was then voted down in the Senate on the last day of the spring legislative session. 

The plan, proposed by House Speaker Mike Madigan (D-Chicago) was unbalanced by more than $7 billion. 

The heart of the TIA report indicates that Illinois has $116.7 billion in pension debt, but is allegedly only reporting $108.6 billion. The TIA also claims that state officials are “hiding” $32.3 billion of retiree health care debt.

Sheila Weinberg, the founder and CEO of Truth in Accounting, told the Record that state politicians have largely ignored similar reports.

“But now that the numbers have gotten so large, they are paying closer attention to it,” she said.

Weinberg said the state is “in uncharted territory” as far as future spending, being the only state in the nation not to have a budget in the last year. That leaves a stark choice.

“They have to bring in more money or take less money out elsewhere,” Weinberg said. “That’s either in the form of tax increases that may drive people out of the state, or a lot of other (methods).” 

Weinberg predicted that 2017 state spending would “just go on autopilot” again in the coming year if a budget compromise isn’t reached.

State Sen. Kyle McCarter (R-Lebanon), who is backing Rauner’s recommended budget, also has set forth proposals of his own. He said he is one of a few lawmakers to do so.

Mccarter is backing a plan that contains approximately $3.5 billion in new savings and cuts, including adjustments in procurement methods and state employee health care options. 

“All of that leaves the governor with about $715 million to cut out of its agencies and (the budget is) balanced without a tax increase," McCarter said.

Weinberg predicted that a compromise on the 2017 budget was unlikely. 

“Unfortunately, the politicians seem to only work when they have to resolve a particular crisis and can’t write out checks,” she said. “As long as they can raise taxes enough or borrow enough money, they limp along. Until, unfortunately, a larger crisis happens.”

Radio talk show host Johnny Angel Wendell, who covers national politics, said the Illinois debt problem spotlighted in the TIA report was not a “looming catastrophe.”

“As long as the payments cover the interest, the idea that this (deficit) is a looming catastrophe” is hyperbole,” he said.

The Fifth District Appellate Court has upheld an award of attorneys' fees favoring SL Chapman of St. Louis arising from a 2007 Jones Act suit against Beelman River Terminals.

Last month's decision ended a longstanding dispute between former law partners, netting Brad Lakin's firm SL Chapman $206,733.33 and Craig Jensen's firm MeyerJensen $51,600.

Jensen had appealed a ruling by Madison County Circuit Judge Andreas Matoesian in the case of deckhand Jesse White, who was severely injured in 2007 when a winch operator tightened a towline too fast causing it to strike his knee.

White settled his case with Beelman in November 2013 for $775,000.

A fight over the one-third share of attorneys' fees - $258,333 - ensued.

White originally hired Lance Mallon to represent him in 2007. A year later, Mallon partnered with the Lakin Law firm, predecessor to LakinChapman and SL Chapman, on the White case. Mallon died in 2010, but his firm received a referral fee for White v. Beelman.

Jensen had been a partner at Lakin Law; in 2011 he resigned from the firm, then known as LakinChapman, and entered into an of counsel arrangement while operating a practice independent of LakinChapman. He worked the White case while of counsel at LakinChapman.

In March 2013, Jensen became a shareholder in MeyerJensen; White then discharged SL Chapman as counsel and selected MeyerJensen to represent him.

At a December 2013 hearing to adjudicate SL Chapman's lien for attorneys' fees before Matoesian, SL Chapman attorney Robert Schmieder argued that his firm had represented White for 46 months and that MeyerJensen had represented White for approximately six months.

Schmieder further argued that SL Chapman had undertaken the more significant risks and contingencies involved in the case, and that it was ready for trial at the time White dicharged the firm.

Jensen argued that the case was ready for trial when MeyerJensen took it over.

"The record in this case clearly shows Jensen performed most of the pretrial preparations and trial preparations while he was working for SL Chapman, and that the client obtained substantial benefits from this work," wrote Justice Judy Cates.

"This is a case in which the law firm who had done much of the work was discharged without cause a few months before a settlement was reached."

Cates also wrote that the MeyerJensen's $51,600 share of attorney fees represented almost 20 percent of the total.

"After reviewing the record, we find that the factors involved in determining a reasonable fee in quantum meruit support the court's determination that the entire contingency fee should be awarded to SL Chapman, less a reasonable fee to MeyerJensen for its service, and we find no abuse of discretion in the court's award."

Justices Bruce Stewart and James Moore concurred.

EAST ST. LOUIS — Employee retirement providers are suing CY Wuebbels & Sons Painting Contractors LLC, an employer, citing alleged breach of a collective bargaining agreement.

Illinois State Painters Welfare Fund, International Union of Painters and Allied Trade District Council #58 401(K) Plan, Finishing Trades Institute, Labor Management Cooperative Initiative Safety Training Award Recognition, Southern Illinois Drug Fund, and Painters District Council #58 Administrative Dues Check Off filed a complaint on June 1 in U.S. District Court for the Southern District of Illinois, East St. Louis Division, against CY Wuebbels & Sons Painting Contractors LLC, alleging that the employer allegedly violated the Employee Retirement Income Security Act and the Labor Management Relations Act.

According to the complaint, the plaintiffs allege that they have not receive delinquent contributions in the amount of $14,755.60, work dues of $4,991.97 and checkoffs of $212.33. The plaintiffs holds CY Wuebbels & Sons Painting Contractors LLC responsible because the defendant allegedly failed to make prompt payment of the contributions and other amounts required under the labor agreement.

The plaintiffs request a trial by jury and seek judgment against the defendant in the sum of $19,959.90, plus liquidated damages, interest, audit costs, attorneys’ fees, court costs and all other reasonable expenses incurred in the collection of delinquent contributions, attorneys’ fees and costs and such further and other relief as may be available and equitable. They are represented by John P. Leahy of Cavanagh & O'Hara LLP in Springfield.

U.S. District Court for the Southern District of Illinois East St. Louis Division case number 3:16-cv-00593

U.S. District Judge David Herndon rejected former state election board director Ronald Michaelson as a witness for State Farm at trial in a $9 billion claim that the insurer corrupted the Illinois Supreme Court. 

On June 2, Herndon barred a report that Michaelson wrote and testimony he would have provided at a class action trial set for next year. 

“His observations do not rise to the level of expert testimony and will not help the fact finder,” Herndon wrote. 

Lead plaintiff Mark Hale claims State Farm secretly secured the election of Justice Lloyd Karmeier in 2004, in order to overturn a $1 billion verdict. In the original case, Williamson County jurors found State Farm supplied inferior parts for crash repairs. 

Hale seeks to recover the judgment with interest from 1999 and triple damages under racketeering law. 

He moved to exclude Michaelson, formerly a top assistant to governor Richard Ogilvie, and Herndon disposed of Michaelson with a rough review. 

Hendon called Michaelson’s report nothing more than a summary and observations of what appeared to come from what he gleaned from the records. 

“Clearly, his observations are a recitation of publically (sic) available campaign contribution information with an editorial,” Herndon wrote. 

“It appears to the court that he has done no probing, he has not compared those records with the discovery in the case and he has not done any independent analysis. 

“In fact, Michaelson concedes that he was not supplied with, nor did he have, seek or use more information than the summary of contributions maintained by the Illinois State Board of Elections in formulating his opinions. 

“Simply, he has performed a rudimentary analysis/report that contains bias that can be associated with the consulting fee paid to him.” 

Herndon included the observations he rejected. 

Michaelson observed that: 

-The state parties contributed almost $4.75 million to Republican candidate Karmeier and Democrat candidate Gordon Maag. 

-Two political action committees combined for about $2.5 million; 

-Contributions of trial bar firms and lawyers to the campaign and the Democratic Party were especially significant and substantial in the final two weeks of the campaign; and 

-Plaintiff’s counsel were significant contributors not only to Maag but also in other elections and retentions. 

“As compared to Maag, the Karmeier campaign had a much broader contribution base,” Michaelson observed. “It had more individual contributors, relying far less on in-kind contributions. 

“Hundreds of business interests certainly played a major role, but there was not concentration of influence as there was in the Maag campaign.” 

Michaelson further observed that: 

-In Karmeier’s retention campaign in 2014, Karmeier had 111 contributors and the campaign against him had 16; 

-Karmeier’s contributors gave $309,000, and anti-Karmeier contributors, all trial bar interests, gave $2.7 million; and 

-State Farm contributed no money to Karmeier or a political action committee that supported him. Employees individually contributed $5,700. 

While Herndon excluded Michaelson, he denied motions to exclude University of Minnesota law professor Richard Painter and economist Lauren Stiroh as experts for State Farm. 

Painter’s report stated that a class action is not a superior method for adjudicating whether Karmeier adhered to ethical standards or whether the Supreme Court adhered to due process. 

“Furthermore, plaintiff’s counsel’s campaign contributions against Justice Karmeier create an insurmountable conflict of interest that prevents class counsel from adequately representing the class in advancing the argument that contributions require recusal and must be disclosed by all parties to a recusal motion,” Painter wrote. 

Stiroh’s report stated that if Karmeier had recused himself, the Supreme Court would not have fully affirmed an appellate court decision against State Farm. 

She wrote that the Justices would have unanimously decided not to affirm a nationwide class certification for breach of contract. 

According to Stiroh, they would have unanimously decided not to affirm damages.She also wrote that they unanimously agreed that Illinois consumer fraud law could not apply to policyholders outside Illinois. 

Herndon struck 12 paragraphs of her report for invading his province, and did not include them in the order.

Shelley Zotz filed a complaint on May 20 in the St. Clair County Circuit Court against Chu and Cao Inc. and Mehmet Dinceroglu alleging negligence.

According to the complaint, the plaintiff alleges that on April 6, while she was exiting the West Main Cafe, her foot stuck in a drain grate causing her to fall. She alleges her injuries resulted in pain and suffering, lost wages, loss of enjoyment of life and disability. The plaintiff holds Chu and Cao Inc. and Mehmet Dinceroglu responsible because the defendants allegedly failed to provide a safe means of entering and exiting from its restaurant, failed to warn of the condition, failed to warn of the hazardous condition either by signage or other suitable warnings and failed to exercise reasonable care in the maintenance of its premises.

The plaintiff requests a trial by jury and seeks judgment against each of the defendants in an amount greater than $50,000, plus costs. She is represented by Jarrod P. Beasley of Kuehn, Beasley & Young PC in Belleville.

St. Clair County Circuit Court Court case number 16L289

Muriel Jones filed a complaint on May 20 in the St. Clair County Circuit Court against Jay Hospitality Inc. alleging negligence.

According to the complaint, the plaintiff alleges that on Jan. 23 while exiting her vehicle, she slipped and fell on ice in the parking lot, causing her injury. She alleges she has suffered and will continue to suffer pain, sufferings, lost wages, loss of enjoyment and disability. The plaintiff holds Jay Hospitality Inc. responsible because the defendant allegedly failed to warn of the presence of the slick substance, failed to warn of the hazardous condition and failed to provide a safe means of entering and exiting the hotel.

The plaintiff requests a trial by jury and seeks judgment against defendant in an amount greater than $50,000. She is represented by Jarrod P. Beasley of Kuehn, Beasley & Young PC in Belleville.

St. Clair County Circuit Court case number 16L288

Central Laborers' Pension Welfare and Annuity Funds filed a complaint on June 1 in the U.S. District Court for the Southern District of Illinois against A & A Hauling Inc. and Steven R. Petroff alleging violation of the Employee Retirement Income Security Act.

According to the complaint, the plaintiff alleges that it suffered damages as a result of late and unpaid contributions from the defendants. The plaintiffs hold A & A Hauling Inc. and Steven R. Petroff responsible because the defendants allegedly failed to pay contributions to the labor group on behalf of its employees in a breach of their agreement.

The plaintiff seeks judgment against the defendants, enjoin the defendants and order them to submit all delinquent monthly contribution reports to plaintiff, all unpaid contributions, liquidated damages, costs for auditing defendant's records, $3,536.58, all costs to any audit of defendants' payroll, and any further relief as the court sees fit. It is represented by Patrick R. Foley of Foley & Kelly LLC in Belleville.

U.S. District Court for the Southern District of Illinois case number 3:16-cv-00594-NJR-SCW

Mariah Moffett and Jasmine Nelson filed a complaint on May 23 in St. Clair County Circuit Court against D & W and Associates LLC, doing business as Main Street Strip Club, and Marvin Shannon, alleging negligence.

According to the complaint, the plaintiffs allege that on May 23, they sustained physical injuries as a result of the defendant's bouncer, Shannon, using excessive force. The plaintiffs hold D & W and Associates LLC and Shannon responsible because the defendants allegedly failed to property train Shannon and hire competent staff.

The plaintiffs seek judgment against the defendants in an amount of more than $50,000 and any further relief as the court sees fit. They are represented by Michael L. McGlynn of McGlynn & McGlynn in Belleville.

St. Clair County Circuit Court case number 16-L-273

BELLEVILLE — A mother is suing Makial Lucas and Samuel Young, III, students, claiming they sexually assaulted a disabled person.

Chinetta Martin of East St. Louis, individually and as guardian of the estate of C.D.C., a disabled adult, filed a complaint on May 25 in the St. Clair County Circuit Court against the defendants alleging that they sexually assaulted C.D.C..

According to the complaint, the plaintiff alleges that, on Dec. 16, 2013, C.D.C. was sexually assaulted in her school, which was proven through a rape examination performed on her. The experience caused severe trauma, causing her to stop going to school and leaving her unable to complete her high school education, the suit says. The plaintiff holds the defendants responsible because the defendants allegedly removed C.D.C. from her class and forcefully dragged her into a closet to sexually abuse he,r causing physical injuries and trauma.

The plaintiff seeks judgment against the defendants for actual damages in excess of $50,000, punitive damages plus court costs. She is represented by Ryan J. Mahoney and David Cates of Cates Mahoney LLC in Swansea.

St. Clair County Circuit Court case number 16L287