Lake County Grading Co. v. Village of Antioch
2014 IL 115805
| Ill. | 2014Background
- Lake County Grading sues Village of Antioch for breach of contract related to public works bonds for Neumann Homes.
- Village contracted with Neumann to install public improvements in NeuHaven and Clublands subdivisions.
- Neumann issued four Fidelity bonds totaling $18,128,827, none expressly guaranteeing payment to subcontractors.
- Lake County Grading supplied labor and materials; Neumann defaulted and later declared bankruptcy; notices of lien were served Feb 18, 2008.
- Trial court awarded summary judgment for Lake County Grading on breach counts II and IV; appellate court reversed; Illinois Supreme Court reverses appellate and circuit judgments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Bond Act §1 deeming require payment provisions in bonds lacking explicit language? | Lake County Grading contends deeming clause makes bonds include payment. | Village argues deemed provisions render bonds compliant with payment obligations. | Yes; bonds are deemed to contain payment and completion provisions. |
| Do 180-day limitations apply to breach claims when no explicit payment bond was procured? | Lake County Grading argues limitations do not bar breach claims. | Village contends 180-day limit applies to bond-related actions. | Court declines to resolve beyond deeming conclusion; remand for summary judgment on counts II and IV. |
Key Cases Cited
- Carroll Seating Co. v. Verdico, 369 Ill. App. 3d 724 (2006) (protects subcontractors under Bond Act context)
- Aluma Systems, Inc. v. Frederick Quinn Corp., 206 Ill. App. 3d 828 (1990) (construction bond interpretations)
- Housing Authority v. Holtzman, 120 Ill. App. 2d 226 (1970) (public works bond purpose and protections)
- Ardon Electric Co. v. Winterset Construction, Inc., 354 Ill. App. 3d 28 (2004) (discusses bonds and payment obligations)
- Fodge v. Board of Education of the Village of Oak Park, District 97, 309 Ill. App. 109 (1941) (early Bond Act interpretation)
