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Joseph Construction Co. v. Board of Trustees of Governors State University
973 N.E.2d 486
Ill. App. Ct.
2012
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Background

  • Joseph Construction contracted with Governors State University (GSU) for renovation work; Sullivan acted as GSU procurement officer executing the contract.
  • Plaintiff alleges substantial completion around April 2008 valued at $1,564,231, including shower room tile work.
  • After completion, GSU identified puddling; plaintiff performed limited remedial work; a 2009 warranty inspection followed.
  • GSU withheld $49,000 from final payment in September 2009 purportedly to correct defects; plaintiff alleges misaction beyond authority.
  • Plaintiff sought injunction, declaratory relief, and damages for breach of contract; contract required that claims be brought in the Illinois Court of Claims.
  • Trial court granted dismissal under 2-619, concluding Court of Claims had exclusive jurisdiction; plaintiff appealed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the contract’s forum clause requires Court of Claims litigation. GSU is not conferred jurisdiction by contract for equitable relief. Governing Law clause mandates Court of Claims for claims against the State entity. Forum clause not enforceable; Court of Claims jurisdiction still governs.
Whether sovereign immunity and the Court of Claims Act bar circuit-court claims against GSU. GSU is not the State; circuit court jurisdiction exists. GSU is an arm of the State; Court of Claims exclusive jurisdiction applies. GSU is an arm of the State; Court of Claims has exclusive jurisdiction over breach-of-contract claims.
Whether injunctive/declaratory counts are proper or merely artful pleading of a contract claim; whether leave to amend should be granted. Counts I–II seek equitable relief; amendment should cure defects. Equitable counts restate contract claim; amendment would not cure jurisdictional defects. Injunctive/declaratory counts are subsumed by contract claim; leave to amend was properly denied.

Key Cases Cited

  • Ellis v. Board of Governors of State Colleges & Universities, 102 Ill. 2d 387 (1984) (universities are arms of the State; Court of Claims exclusive jurisdiction)
  • Raymond v. Goetz, 262 Ill. App. 3d 597 (1994) (breach-of-contract claims against universities fall under Court of Claims)
  • Rockford Memorial Hospital v. Department of Human Rights, 272 Ill. App. 3d 751 (1995) (substance controls sovereign-immunity analysis)
  • IFC Credit Corp. v. Rieker Shoe Corp., 378 Ill. App. 3d 77 (2007) (forum-selection clauses assessed by contract formation and public-law constraints)
  • Peters v. Board of Trustees of Southern Illinois University, 351 Ill. App. 3d 1143 (2004) (post‑Public Act 89‑4, universities treated as State arms; enduring sovereign-immunity principles)
  • Williams v. Medical Center Comm’n, 60 Ill. 2d 389 (1975) (state entities as arms of the State; sovereign immunity principles)
  • Hoffman v. Yack, 57 Ill. App. 3d 744 (1978) (sovereign-immunity context for state university actions)
  • Brandon v. Bonell, 368 Ill. App. 3d 492 (2006) (artful pleading considerations in sovereign-immunity context)
  • Currie v. Lao, 148 Ill. 2d 151 (1992) (sovereign-immunity framework; state duties arising from employment)
  • Kolacki v. Verink, 384 Ill. App. 3d 674 (2008) (leave-to-amend standards in pleadings)
Read the full case

Case Details

Case Name: Joseph Construction Co. v. Board of Trustees of Governors State University
Court Name: Appellate Court of Illinois
Date Published: Jul 20, 2012
Citation: 973 N.E.2d 486
Docket Number: 3-11-0379
Court Abbreviation: Ill. App. Ct.