155 Harbor Drive Condominium Ass'n v. Harbor Point Inc.

568 N.E.2d 365, 209 Ill. App. 3d 631, 154 Ill. Dec. 365, 1991 Ill. App. LEXIS 163
CourtAppellate Court of Illinois
DecidedFebruary 7, 1991
Docket1-88-3158,1-88-3492 cons.
StatusPublished
Cited by77 cases

This text of 568 N.E.2d 365 (155 Harbor Drive Condominium Ass'n v. Harbor Point Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
155 Harbor Drive Condominium Ass'n v. Harbor Point Inc., 568 N.E.2d 365, 209 Ill. App. 3d 631, 154 Ill. Dec. 365, 1991 Ill. App. LEXIS 163 (Ill. Ct. App. 1991).

Opinion

JUSTICE JOHNSON

delivered the opinion of the court:

Plaintiff, 155 Harbor Drive Condominium Association, is appealing the dismissal of its action in the circuit court of Cook County. Plaintiff seeks to set aside the decision of the trial court that found its complaint against defendants did not state a valid cause of action.

The following issues are before this court for review: (1) whether the trial court erred when it ruled that the breach of warranty claims were acts arising out of the construction of a building, and that the construction statute of limitations (Ill. Rev. Stat. 1981, ch. 110, pars. 13 — 214(a), (b)) was applicable; (2) whether the trial court erred when it ruled that the construction statute of limitations had expired, barring the warranty claims; and (3) whether the 155 Harbor Drive Condominium Association is a third-party beneficiary of the construction subcontract entered into by Crescent Erection Company and Consolidated Aluminum Corporation, thereby enabling plaintiff to seek recovery from Crescent Erection Company for alleged construction defects.

We affirm.

Background

This action arises out of the development of a condominium building located at 155 East Harbor Drive in Chicago, Illinois (hereinafter building). The contractors began construction on the building in 1973. The building was completed in 1975.

The original owner and developer was a joint venture composed of four entities known as the T.I.C. Venture parties. The T.I.C. Venture parties consisted of defendants T.I.C. Venture,' Harbor Point Venture, Hlinois Center Corporation, and Talman/Home Investments, Inc. Illinois Center Corporation was Harbor Point Venture’s general partner. Talman/Home Investments, Inc., was Harbor Point Venture’s limited partner. In July of 1976, Harbor Point Incorporated, a defendant in the trial court that is not a party to this appeal, became the successor in interest to T.I.C. Venture.

Defendants Elsa Benson, Inc. (hereinafter Benson), Consolidated Aluminum Corporation (hereinafter Conalco), and Crescent Erection Company (hereinafter Crescent) were subcontractors. Benson was the general contractor for the project. The contract with Benson to be the general contractor includes, but is not limited to, a standard form of agreement between owner and contractor, general conditions of the contract for construction (AIA Document A201), supplementary general conditions, general requirements specifications, and architectural, engineering and shop drawings. These various documents are hereinafter referred to as the “Benson contract.” Benson hired Conalco as one of the subcontractors. The contract between Benson and Conalco incorporates by reference the terms and conditions of the Benson contract. Conalco worked on the curtain wall and subcontracted some of the work to Crescent.

The Benson contract made the following warranties to the future individual condominium unit owners:

“(i) ADDITIONAL CONSTRUCTION WARRANTY FOR CONDOMINIUM UNIT PURCHASERS:
1. The Contractor warrants the workmanship and materials in the individual apartment units ***. See Warranty Form to be furnished by the Owner to each unit apartment owner. This warranty shall also apply to the common and public elements ***.
2. The above warranty for Condominium Units does not supersede the general guarantee described by AIA General Conditions, article 13.2.2, but is in addition thereto ***.
(ii) WARRANTY TO CONDOMINIUM PURCHASERS:
It is a requirement under the Construction Contract Agreement that the Contractor assumes and accepts the total responsibility for fulfilling on behalf of Owner and he shall bind his Subcontractor to accept as their responsibility the work requirements [under the Owner’s warranty] *** which shall be furnished to each Condominium Unit Apartment Owner.

(iii) LIMITATION ON DURATION OF CONTRACTOR’S WARRANTY OBLIGATIONS:

a. General Rule. Notwithstanding the provisions of Paragraphs 4A and 4B of the General Requirements, Paragraph 13.2.2 of the General Conditions, SGC-19 and SGC-20 (herein called ‘Warranty Obligations’), the Warranty Obligations shall, subject to the provisions of Paragraph B below, commence and expire as follows:
1. Commence, as to each Condominium Apartment Unit, upon substantial completion of the Work therein, and expire one year from the Date of Substantial Completion of the Project.
2. Commence, as to the Work located in the portions thereof located at and below the lower 30 apartment floors, and not located in. a Condominium Apartment Unit, upon substantial completion of said lower 30 apartment floor, and expire one year from the date of Substantial Completion of the Project, and expire one year form the Date of Substantial Completion of the Project.
b. Exceptions. The provisions of Paragraph a, above, are subject to the following exceptions: (1) Warranties specified in the Contract Documents for periods longer than the period specified in Paragraph a, above, shall be for the periods specified ***.
(iv) *** [E]ach Condominium Unit Purchaser shall have the option of certain construction items, materials and equipment * * *
(v) Contractor and each Subcontractor shall assign to Owner or as the Owner may direct to the individual apartment condominium Owner, all manufacturer’s warranties of material or equipment.
(vi) GUARANTEE [curtain wall]: Before final payment is made, the Subcontractor shall guarantee in writing that all parts of his work meet with the specification requirements and will be free from defects for a period of five years from the date of acceptance of the work.”

The Benson contract also made the following guarantees:

“(vii) GUARANTEE [glass and glazing]:
Guarantee period shall be five (5) years from date of acceptance by Architect or original glazing work requirements. Insulated glass units shall in addition carry a twenty (20) year warranty from the manufacturer.
(viii) Contractor and each Subcontractor guarantees to Owner that, whether furnished by Contractor or any Subcontractor, the labor used in performing the Work on the Project, and the material sand equipment incorporated into the Project, will be of good workmanship, free of defects, and fit for the use intended therefor.
(ix) The guaranties referred to in 4A shall continue for the period of one (1) year from and after the date Architect certifies that Project to be completed unless otherwise specifically noted for a longer period.

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Cite This Page — Counsel Stack

Bluebook (online)
568 N.E.2d 365, 209 Ill. App. 3d 631, 154 Ill. Dec. 365, 1991 Ill. App. LEXIS 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/155-harbor-drive-condominium-assn-v-harbor-point-inc-illappct-1991.