Lake County Grading Co., Inc. v. Village of Antioch

This case presents question as to whether trial court properly found that defendant-Village was liable to plaintiff-subcontractor for work plaintiff performed on residential subdivision, where contractor and defendant had entered into agreement that required contractor to provide surety bonds that guaranteed performance on residential subdivision for benefit of defendant. Appellate Court, in affirming trial court, found that section 1 of Bond Act, 30 ILCS 550/1, required defendant to obtain from contractor payment bond for benefit of subcontractors, and defendant’s failure to require contractor to obtain payment bond rendered defendant liable to plaintiff as third-party beneficiary of contractor’s contract with defendant. Ct. further found that because defendant did not require contractor to procure payment bond, any lawsuit on bond was impossible, and that 180-day limitation period provided in Bond Act did not apply.