Patrick Engineering, Inc. v. The City of Naperville
2012 IL 113148
Ill.2012Background
- Patrick Engineering, Inc. and City of Naperville executed a March 29, 2007 Consultant Services Agreement for a Stormwater Asset Management and GIS System.
- City refused to pay, and Patrick Engineering terminated the contract and sued for breach, account stated, and related claims.
- Patrick Engineering filed multiple amended complaints; the City moved to dismiss Counts I, II, and IV seeking dismissal under 2-619/2-615.
- The trial court dismissed; appellate court reversed and remanded, focusing on whether equitable estoppel could apply against a municipality.
- The issue centered on whether the plaintiff could establish equitable estoppel based on apparent authority of City employees despite a lack of explicit written authorization for additional services.
- The Supreme Court held that equitable estoppel cannot apply against a municipality based on apparent authority alone and requires pleadings showing express authority and reasonable reliance; appellate court’s contrary reasoning was reversed and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether equitable estoppel may apply against a municipality based on apparent authority. | Patrick Engineering alleged City officials had apparent authority to induce reliance. | City contends estoppel requires express authority, not apparent authority. | Equitable estoppel against a municipality requires express authority; apparent authority alone is insufficient. |
Key Cases Cited
- Nielsen-Massey Vanillas, Inc., 276 Ill. App. 3d 146 (1995) (reliance and agency principles in municipal estoppel)
- Cities Service Oil Co. v. City of Des Plaines, 21 Ill. 2d 157 (1961) (knowledge of limitations imputed to plaintiffs; need for explicit authority)
- Lindahl v. City of Des Plaines, 210 Ill. App. 3d 281 (1991) (agency knowledge and municipal liability limitations)
- Kenny Construction Co. v. Metropolitan Sanitary District, 52 Ill. 2d 187 (1971) (undercuts broad estoppel against municipalities; contract-specific)
- Stahelin v. Board of Education, School District No. 4, 87 Ill. App. 2d 28 (1967) (extras and authority in municipal contracts; contract-specific)
- Petrovich v. Share Health Plan of Illinois, Inc., 188 Ill. 2d 17 (1999) (apparent authority and estoppel origins; equitable estoppel generally)