2018 IL 122022
Ill.2018Background
- Plaintiffs sued for latent construction defects in a new home and sought to hold subcontractors directly liable under the implied warranty of habitability.
- The implied warranty of habitability was originally recognized to protect purchasers from latent defects in new homes sold by builder-vendors.
- The appellate court had held that the warranty applies to subcontractors; this appeal presented whether that rule should stand.
- The majority reversed the appellate court and held the implied warranty cannot be applied to the subcontractors in this case (certified question answered; judgments reversed; cause remanded).
- Justice Kilbride dissented, arguing the warranty should apply directly to subcontractors based on established public‑policy grounds and precedent extending the warranty beyond privity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the implied warranty of habitability applies directly to subcontractors | Subcontractors are in the construction business; purchasers rely on their competence; warranty should extend to subcontractors so purchasers can recover for latent defects | Implied warranty is rooted in contract for sale and traditionally tied to builder‑vendor; should not be extended to subcontractors | Majority: warranty cannot be applied to subcontractors in this case (appellate judgement reversed). Dissent: would extend warranty to subcontractors. |
Key Cases Cited
- Petersen v. Hubschman Constr. Co., 76 Ill. 2d 31 (recognition of implied warranty of habitability to protect purchasers of new homes)
- Redarowicz v. Ohlendorf, 92 Ill. 2d 171 (extension of implied warranty to subsequent purchasers; privity not required)
- VonHoldt v. Barba & Barba Constr., Inc., 175 Ill. 2d 426 (applied warranty to significant additions; reaffirmed public‑policy rationale)
- Bd. of Directors of Bloomfield Club Rec. Ass'n v. The Hoffman Group, Inc., 186 Ill. 2d 419 (discussed policy justifications guiding doctrine's growth)
- Minton v. The Richards Group of Chicago, 116 Ill. App. 3d 852 (appellate court applying implied warranty to subcontractors when purchaser cannot recover from builder)