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Articles Posted in Contract Construction

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Illinois Appellate Court Affirms Dismissal of Claim on Demand Note on Limitations Basis

On June 14, 1988, Thomas John Heck Jr. executed a note in favor of Paul D. Heck.  The note promised to pay $51,000 at 7% interest, compounded annually, with this instruction: “Borrower shall make a single payment on demand within 90 days of demand letter. If payment is not demanded…

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$23.22 Million Joint and Several Jury Verdict Reversed and Remanded by Illinois Appellate Court

The defendant, Toad L. Dragonfly Express Inc., appealed an award of contribution entered against it and in favor of the defendant C.H. Robinson Worldwide Inc. and other corporate entities collectively, CHR. After the jury trial, judgments totaling $23,225,000 were entered, jointly and severally against Dragonfly and its owner, Luann G.…

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U.S. Supreme Court Resolves Issue on Whether State Law Operated as Substantial Impairment of Contract

The contract clause of the United States Constitution restricts the power of states to disrupt contractual arrangements. It provides that “No state shall  pass any . . . law impairing the obligation of contracts.” U.S. Const., Art. I, ¶ 10, cl. 1. This was a case about life insurance proceeds.…

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U.S. District Court Dismisses Breach of Contract, Finding Noncompete Clause Improper

Daniel Dumrauf was a director with Medix Staffing Solutions Inc., a Chicago-based staffing agency. Dumrauf, who worked at Medix’s Scottsdale, AZ, office, had an employment agreement containing a noncompete clause that restricted him from any affiliation “with the ownership, management, operation or control” of any business in competition with Medix…

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Illinois Appellate Court Finds Trial Court Wrong in Applying the “Verdict Test”

A contract was entered into between Beckett Media LLC and OnRamp Technologies to allow Beckett to use OnRamp’s applications and websites for “inventory management and sales solution.” According to the contract, “in the event of any litigation of any controversy or dispute arising out of or related to this agreement,…

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Illinois Appellate Court Pierces Corporate Veil and Awards Attorney Fees

The Illinois Appellate Court for the First District has affirmed a judgment that pierced the corporate veil of a closely held corporation and then awarded the plaintiff attorney fees connected to this litigation. The case was reported to be one of first impression in Illinois. Steiner Electric sold electrical products…

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Illinois Appellate Court Reverses Decision Where Contractor was Entitled to Insurance Coverage for Vicarious Liability

The Illinois Appellate Court for the First District has held that an insurer had a duty to defend an additional insured who was entitled under the policy of insurance to coverage because of vicarious liability even though the underlying complaint against it included no allegations of vicarious liability. CSR Roofing Contractors…

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Illinois Appellate Court Rules that Insurance Company Must Have Received Actual Notice from Insured Before Duty to Defend Kicks In

On July 26, 2011, Lashaunda Carter was driving her car when she was involved in a crash with an uninsured motorist, Cortez Williams. Jasmine Carter was in Carter’s car and was injured as a result of the collision. Lashaunda was insured by American Access Insurance Co. Lashaunda’s insurance policy covered…

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Illinois Appellate Court Returns Contract Case to Trial Court Finding Ambiguous Language

The Illinois Appellate Court has reversed and remanded a decision by a circuit court judge regarding a contract.  Global Care S.C. was a medical services corporation that leased several office suites from K&K Holdings. The term of the leases was seven years.  The lease was to end on July 31, 2011. …

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