Lake County Grading Company v. The Village of Antioch

Illinois Appellate Court
Civil Court
Case Number: 
2013 IL App (2d) 120474
Decision Date: 
February 20, 2013
2d Dist.
Lake Co.
Company entered into two infrastructure agreements with Defendant Village to make public improvements in residential subdivisions, and company provided surety bonds guaranteeing performance for benefit of Village. Bonds did not guarantee payment to subcontractors. Company defaulted on contract with Village and failed to pay Plaintiff grading company, a subcontractor. Section 1 of Bond Act, and provision in contract, made Plaintiff subcontractor a third-party beneficiary with right to sue on contract. As Village did not require company to procure a payment bond, suit on bond is impossible and statute of limitations of Bond Act does not apply. Plaintiff's breach of contract claims are subject to four-year statute of limitations for construction contracts. (McLAREN and HUDSON, concurring.)