1324 W. Pratt Condominium Association v. Platt Construction Group
974 N.E.2d 279
Ill. App. Ct.2012Background
- Developer Wayne hired Platt as general contractor; Platt subcontracted EZ Masonry for masonry work.
- Wayne and unit owners formed the condo association after leaks and mold appeared following construction.
- Unit owners signed contracts with Wayne containing a Homeowner’s Limited Warranty and a waiver of the implied warranty of habitability.
- Wayne became insolvent; leaks, water intrusion, and mold persisted, increasing costs.
- Condo association sued Wayne, Platt, and EZ Masonry for implied warranties and related claims; the circuit court dismissed based on waiver.
- Appellate court held (i) waiver did not extend to Platt or EZ Masonry; (ii) EZ Masonry can be liable only if Platt is insolvent; reversed in part.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the waiver disclaimer extend to Platt and EZ Masonry? | Waiver should apply to all liable parties. | Disclaimer limits only Wayne, not other contractors. | Discretion declined; disclaimer not extended to Platt or EZ Masonry. |
| Can EZ Masonry be liable for implied warranty if Wayne is insolvent or not? | Minton/Redarowicz-based reasoning allows subcontractor liability. | Minton limited to insolvent builder-vendors; no extension here. | EZ Masonry not liable while Platt remains solvent. |
Key Cases Cited
- Redarowicz v. Ohlendorf, 92 Ill.2d 171 (Ill. 1982) (established public policy basis for implied warranty of habitability)
- Petersen v. Hubschman Construction Co., 76 Ill.2d 31 (Ill. 1979) (recognizes a strict waiver standard against builder-vendor)
- Board of Managers of Village Centre Condominium Ass’n v. Wilmette Partners, 198 Ill.2d 132 (Ill. 2001) (waiver must be conspicuous, fully disclose consequences, and reflect agreement)
- Colsant v. Goldschmidt, 97 Ill. App.3d 53 (Ill. App. 1981) (disclaimer must be brought to buyer’s attention and agreed to)
- Minton v. The Richards Group of Chicago, 116 Ill.App.3d 852 (Ill. App. 1983) (extends warranty to subcontractors when builder-vendor insolvent)
- Washington Courte Condominium Ass’n-Four v. Washington-Golf Corp., 150 Ill.App.3d 681 (Ill. App. 1986) (limits extension to subcontractors when builder-developer solvent; clarifies Redarowicz scope)
- 1324 W. Pratt Condominium Ass’n v. Platt Construction Group, Inc., 404 Ill. App.3d 611 (Ill. App. 2010) (prior ruling extending warranty to non-vendor builders; basis for current decision)