Clausen Miller Successful in Obtaining Reversal in Illinois Supreme Court
By decision issued by the Illinois Supreme Court on June 15, Clausen Miller was successful in persuading the Court to reverse a ruling of the Second District Appellate Court addressing breach-of-contract issues.
The lawsuit involved a claim by a land fill developer against a village alleging that the village interfered with the developer’s work on the project. The village responded by claiming that the developer also breached. The trial court found breaches by both parties. But applying the “first to breach” rule, it held that only the developer was entitled to recover damages and not the village. On appeal, the Second District reversed and held that, in light breaches by both sides, neither was entitled to recover against the other.
On the developer’s appeal to the Supreme Court, that Court adopted the so-called “partial breach” doctrine. Under that doctrine, if one party materially breaches a contract, the second party may either terminate the contract and sue for damages, or alternatively, may continue performing and sue for damages. If it continues to perform, however, the second party may be held liable for any breaches it commits to the originally breaching party. The Court here found that both parties continued to perform after the other’s breach. It therefore reversed and remanded for a further determination of damages and related issues.
The case is PML Development LLC v. The Village of Hawthorn Woods, 2023 IL 128770. The developer was represented by Melinda Kollross and Don Sampen (argued) and assisted on the brief by Ed Kay.
Melinda S. Kollross
Don R. Sampen
Private: Edward M. Kay