Archon Construction Co. Inc. v. U.S. Shelter, LLC
2017 IL App (1st) 153409
| Ill. App. Ct. | 2017Background
- Archon contracted with U.S. Shelter to install a sanitary sewer system for the Oak Ridge subdivision; the contract incorporated city Plans and specifications requiring the sewer be accepted by the City of Elgin and to be televised one year after completion.
- Archon’s proposal specified PVC (SDR 26) pipe and included an item for testing/televising and a clause that additional work would be on negotiated price or time-and-materials.
- After completion and initial testing in 2005 (air and mandrel tests passed), later videotaping in 2007 revealed defects between MH 108 and MH 110; the city required excavation and replacement with ductile iron pipe.
- Archon performed the required replacement work and submitted a bill (~$247,432.41) for the MH 108–110 work; U.S. Shelter refused to pay. Archon dropped its contractual “extra work” claims on remand and proceeded to trial on quantum meruit only.
- The trial court ruled for U.S. Shelter on quantum meruit (holding an express contract governed the subject matter) and for Archon on U.S. Shelter’s counterclaim for restoration costs; both parties appealed.
- The appellate court affirmed: quantum meruit was barred because the express contract governed the same general subject matter; the trial court’s rejection of U.S. Shelter’s breach-of-contract counterclaim was not against the manifest weight of the evidence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Archon may recover under quantum meruit for the 2007 repairs (replacement with ductile iron) | Archon: work (ductile iron) was outside the contract (contract specified PVC); thus quantum meruit or recovery allowed. | U.S. Shelter: an express contract governed installation and final acceptance of a sewer acceptable to the city, so quasi-contractual recovery is barred. | Court: Denied Archon—quantum meruit barred because the express contract governed the same general subject matter (installation/acceptance of the sewer). |
| Whether U.S. Shelter proved breach of contract by Archon causing restoration damages after 2007 excavation | U.S. Shelter: Archon’s earlier defective work (fittings, couplings, compaction) caused later defects and resulting restoration costs. | Archon: defects found in 2007 were not proven to be caused by Archon’s earlier work; many intervening events could explain them. | Court: Denied U.S. Shelter—failed to prove causal link; trial court’s finding supported by the evidence. |
Key Cases Cited
- People v. Kinion, 97 Ill. 2d 322 (1983) (existence of express contract bars quantum meruit)
- Industrial Lift Truck Service Corp. v. Mitsubishi Int’l Corp., 104 Ill. App. 3d 357 (1982) (work within the general subject matter of a contract precludes quasi-contract recovery)
- Walker v. Brown, 28 Ill. 378 (1862) (animating principle that express and implied contracts for the same thing cannot coexist)
- Avery v. State Farm Mut. Auto. Ins. Co., 216 Ill. 2d 100 (2005) (interpretation of unambiguous contract is a question of law reviewed de novo)
- Installco, Inc. v. Whiting Corp., 336 Ill. App. 3d 776 (2002) (elements and limits of quantum meruit recovery)
- Doornbos Heating & Air Conditioning, Inc. v. James D. Schlenker, M.D., S.C., 403 Ill. App. 3d 468 (2010) (elements for contractual extra-work claims)