MD Electrical Contractors, Inc. v. Abrams

888 N.E.2d 54, 228 Ill. 2d 281, 320 Ill. Dec. 837, 2008 Ill. LEXIS 305
CourtIllinois Supreme Court
DecidedApril 3, 2008
Docket104000
StatusPublished
Cited by61 cases

This text of 888 N.E.2d 54 (MD Electrical Contractors, Inc. v. Abrams) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MD Electrical Contractors, Inc. v. Abrams, 888 N.E.2d 54, 228 Ill. 2d 281, 320 Ill. Dec. 837, 2008 Ill. LEXIS 305 (Ill. 2008).

Opinions

JUSTICE GARMAN

delivered the judgment of the court, with opinion.

Chief Justice Thomas and Justices Fitzgerald, Kilbride, and Karmeier concurred in the judgment and opinion.

Justice Freeman dissented, with opinion, joined by-Justice Burke.

OPINION

Plaintiff, MD Electrical Contractors, Inc., filed suit against defendants Fred and Carol Abrams, under a theory of quantum meruit to recover for services that it rendered as a subcontractor on defendants’ home improvement project. Defendants moved to dismiss the case pursuant to section 2 — 619 of the Code of Civil Procedure (Code) (735 ILCS 5/2 — 619(a)(9) (West 2006)), alleging plaintiff’s failure to comply with the Home Repair and Remodeling Act (Act) (815 ILCS 513/1 et seq. (West 2006)) barred plaintiffs recovery. The circuit court of Du Page County dismissed the case. Plaintiff appealed and the appellate court reversed and remanded, holding that the Home Repair and Remodeling Act does not apply to subcontractors. 369 Ill. App. 3d 309.

This court allowed defendants’ petition for leave to appeal pursuant to Supreme Court Rule 315 (210 Ill. 2d R. 315). Defendants assert on appeal that: (1) the Home Repair and Remodeling Act applies to subcontractors and plaintiff is, therefore, precluded from recovery because it did not comply with the terms of the Act; (2) regardless of the applicability of the Act to subcontractors, plaintiff is prohibited from recovery under quantum meruit because there was no direct relationship between plaintiff and defendants. For the reasons stated below, we affirm the judgment of the appellate court.

BACKGROUND

On November 2, 2005, plaintiff, an Illinois corporation, filed its first amended complaint, which is the subject of this case. Plaintiff alleged that from June 6, 2004, through October 1, 2004, it was a subcontractor that provided labor, electrical equipment, and materials (which we collectively refer to as “services”) toward the remodeling of defendants’ residence in Naperville, Illinois. Plaintiff alleges that it provided services to defendants on a nongratuitous basis; defendants accepted, received, and enjoyed the benefits of these services; and these services had a value of $14,984. Plaintiff has not been compensated for its services. The complaint did not identify a theory of liability, but merely pled the facts above as well as the fact that no contract existed between defendants and plaintiff to govern the method of payment for plaintiffs services.

Defendants filed a motion to dismiss pursuant to section 2 — 619 of the Code, alleging that the services performed by plaintiff fell within the Home Repair and Remodeling Act and that the plaintiff had failed to comply with the Act. Thus, defendants asserted, plaintiff could not recover because the court could not imply a contract where the Act would prohibit one. Defendants relied upon the following provisions of the Home Repair and Remodeling Act: section 5 (policy), section 10 (definitions of “home repair and remodeling” and “person”), section 15 (requirements of written contracts and the contents thereof), section 20 (the consumer rights brochure), and section 30 (unlawful acts). 815 ILCS 513/5, 10, 15, 20, 30 (West 2006).

Plaintiff countered that the Act does not apply to subcontractors. The basis for this assertion was the Act’s focus on communications with the homeowner. Plaintiff asserted that because subcontractors generally do not have significant interaction with the homeowner, the Act could not be meant to apply to them. In support of its argument, plaintiff attached a copy of an affidavit of Michael J. O’Brien, MD Electrical’s president. The affidavit averred that plaintiff was hired by and had a contract with Apex Builders, Inc., a general contractor (Apex is not a party to this litigation), and that prior to commencing work on June 6, 2004, plaintiff conducted a walk-through of the jobsite. During the walk-through, defendants approved the plans, authorized the work to begin, and requested additional services that were not part of the original plan.1 Plaintiff performed these services, and defendants have retained the full benefit of these services without having paid for them.

The circuit court, after considering the above arguments and ascertaining that plaintiffs theory of liability was quantum meruit, granted defendants’ motion to dismiss. In the process of dismissing the complaint, the trial court asked plaintiff: “[QJuantum meruit is a contract that’s implied, and how can the court imply a contract when the law prohibits one?” At plaintiff’s request, the trial court clarified that its finding was that “to grant the relief that [plaintiff is] saying would be under quantum meruit would be in derogation of statute and a clear legislative pronouncement contrary.” The court concluded by saying that plaintiff could either amend the complaint or the court could issue a finding under Supreme Court Rule 304 (210 Ill. 2d R. 304) so that plaintiff could take an interlocutory appeal. Plaintiff requested the Rule 304 finding and appealed.

Plaintiff presented two issues to the appellate court: first, plaintiff argued that the Home Repair and Remodeling Act does not apply to subcontractors; second, even if the Act does apply to subcontractors, plaintiff was not precluded from recovering in quantum meruit. The appellate court agreed with plaintiffs first contention, finding that the Act does not apply to subcontractors. As such, the court reversed and remanded the cause without reaching the issue of whether recovery is available in quantum meruit even if the Act applies. 369 Ill. App. 3d at 317.

In their petition for leave to appeal to this court, defendants raised, as the sole issue, the application of the Act to subcontractors. However, in their brief to this court, defendants raise a second issue, namely, whether subcontractors are able to recover in quantum meruit or any direct action outside the Mechanics Lien Act (770 ILCS 60/0.01 et seq. (West 2006)).

As to the first issue, plaintiff maintains that the language is ambiguous. In response to the second issue, plaintiff contends that this question is forfeited because the issue was not raised in the defendants’ statement of points relied upon in the petition for leave to appeal, as required by Supreme Court Rule 315 (210 Ill. 2d R. 315).

ANALYSIS

I

This is a case of first impression and requires this court to examine the meaning of the Home Repair and Remodeling Act with respect to subcontractors. As this case is one of statutory interpretation, the standard of review is de novo. Harshman v. DePhillips, 218 Ill. 2d 482, 490 (2006).

It should be noted at the outset that the use of general contractors and subcontractors is a common business practice in the home repair and remodeling industry. This relationship usually entails a homeowner contracting with a general contractor to oversee a specific project, such as an addition to a home.

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Bluebook (online)
888 N.E.2d 54, 228 Ill. 2d 281, 320 Ill. Dec. 837, 2008 Ill. LEXIS 305, Counsel Stack Legal Research, https://law.counselstack.com/opinion/md-electrical-contractors-inc-v-abrams-ill-2008.