Innovative Modular Solutions v. Hazel Crest School Dist. 152.5

This case presents question as to whether trial court properly found that defendant-School District was required to pay plaintiff cancellation fees pursuant to terms contained in leases for portable classrooms, under circumstances where State, in invoking Downstate School Finance Authority for Elementary Districts Law subsequently gave Hazel Crest School District School Finance Authority (Authority) responsibility for defendant’s finances, and where Authority did not direct defendant to pay said fees. Appellate Court, in reversing trial court, found that once State gave Authority exclusive control over defendant’s finances, defendant had no statutory authority to pay its debt because defendant’s performance on said leases was legally impossible. Moreover, Appellate Court found that plaintiff could not obtain judgment against Authority for said fees.