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May 2011 Construction Law Newsletter

May 2011, vol. 1, no. 1

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In This Issue…

Related Court Cases

Construction Contracts
Beal Bank Nevada v. NorthShore Center THC, LLC

Parties' subcontract requires Contractor to pay Subcontractor, and does not impose any condition precedent on such a fundamental obligation. Thus, Contractor is liable for amounts due to a subcontractor even if property owner fails to make payment to Contractor for Subcontractor's work.(GORDON and LAMPKIN, concurring.)

Choice of Law
Dancor Construction, Inc. v. FXR Construction, Inc.

Plaintiff construction company brought breach-of-contract and tort claims related to construction project in New York, and filed in Kane County pursuant to forum-selection clause in parties' contract.Court properly found that New York law rendered forum-selection clause void and unenforceable and that New York was the only proper forum. Under choice of law principles, application of Illinois law would be contrary to a fundamental New York policy, and New York has a materially greater interest than Illinois in determination of this issue. Thus, court properly dismissed case so that it may be refiled in New York. (SCHOSTOK and McLAREN, concucrring.)

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