This case presents question as to whether home purchaser’s potential recovery from insurance policies held by insolvent developer or insolvent general contractor precluded him from bringing implied warranty of habitability claim against subcontractors who participated in construction of residence. Appellate Court found that home purchasers could bring such action as long as they could establish insolvency of general contractor by showing that general contractor’s liabilities exceeded value of its assets, and that general contractor had stopped paying its debts in ordinary course of business. Appellate Court similarly found that mere existence of insolvent developer’s “warranty fund” did not bar property owners from maintaining cause of action for breach of implied warranty of habitability against subcontractor of developer who participated in construction of residence.
Illinois Supreme Court PLAs
Civil Court
Warranty of Habitability