May 2011 Construction Law Newsletter

May 2011, vol. 1, no. 1

New! 2010 Guide to Illinois Statutes for Attorneys' Fee - This handy edition lists provisions in the Illinois Compiled Statutes that authorize the court to order one party to pay the attorney fees of another. No matter what your practice area, this book will save you time – and could save you money! Buy it at http://www.isba.org/store/books/2010attorneysfees

 

Now every article is the start of a discussion. If you're a member of the Construction Law Section, you can comment on any of the articles that appear below.

In This Issue…

Upcoming CLE

Construction Escrow, Lien Waivers and Sworn Statements: Best Practices
September 20 - Online Course

Full CLE Calendar…

Related Court Cases

Construction Contracts
231 W. Scott v. Lakeside Bank

Court erred in entering judgment, after bench trial, against Defendant title company and in favor of Plaintiff LLC, and in concluding that Defendant had breached its fiduciary duty as construction escrowee to the LLC.  As Defendant, as escrowee, had a fiduciary duty to act only in accordance with terms of Escrow Agreement, it cannot have violated its fiduciary duty by failing to inspect construction company's work for progress and quality because Escrow Agreement imposed no such obligation. Scope of fiduciary duty can be defined by escrow agreement. (FITZGERALD SMITH and LAVIN, concurring.)

Construction Contracts
Archon Construction Company Inc. v. U.S. Shelter, LLC

Plaintiff construction company was hired by Defendant to install sanitary sewer system in subdivision. After completion of installation, city's engineering inspector, after viewing video of system, required additional work. Defendant refused to pay Plaintiff for extra work done by Plaintiff. The extra work Plaintiff did was "part and parcel" of contract between parties. Court properly deined Plaintiff's quantum meruit claim, as existence of an express contract on same subject matter dooms that claim. Court properly found that Defendant did not establish causal link between any damages it suffered and any breach by Plaintiff, and thus court properly denied Defendant's counterclaim for breach of contract. (McBRIDE and BURKE, concurring.)

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