People ex rel. Skinner v. Scott

527 N.E.2d 146, 172 Ill. App. 3d 790, 122 Ill. Dec. 774, 1988 Ill. App. LEXIS 1118
CourtAppellate Court of Illinois
DecidedAugust 1, 1988
DocketNo. 2—87—1058
StatusPublished
Cited by5 cases

This text of 527 N.E.2d 146 (People ex rel. Skinner v. Scott) 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
People ex rel. Skinner v. Scott, 527 N.E.2d 146, 172 Ill. App. 3d 790, 122 Ill. Dec. 774, 1988 Ill. App. LEXIS 1118 (Ill. Ct. App. 1988).

Opinion

JUSTICE UNVERZAGT

delivered the opinion of the court:

Plaintiff, the People of the State of Illinois on the relation of Samuel K. Skinner, Chairman of the Capital Development Board, brought an action in the circuit court of De Kalb County against defendants, Caudill Rowlett Scott (Caudill), Fidelity Deposit Company of Maryland (Fidelity) and Sjostrom & Sons, Inc. (Sjostrom), seeking money damages for defects in the design and construction of Kishwaukee College in Malta. Defendants moved for summary judgment claiming that plaintiff’s cause of action had not been brought within the time required by the applicable statute of limitations. The trial court granted the motions for summary judgment and dismissed the case.

Subsequent to the hearing on the motions for summary judgment, but prior to the court’s ruling on the motions, the parties engaged in settlement negotiations. Plaintiff, believing that a settlement agreement had been entered into, filed a motion to enforce that agreement. A hearing was held on the motion, during which defendants Sjostrom and Fidelity settled with plaintiff and were dismissed as parties. Following the hearing, the trial court denied plaintiff’s motion to enforce.

Plaintiff appeals from the trial court’s rulings granting defendants’ motions for summary judgment and denying plaintiff’s motion to enforce the settlement agreement. Having settled with the plaintiff, defendants Sjostrom and Fidelity are not parties to this appeal.

On appeal, plaintiff contends: (1) that the trial court erred in finding that plaintiff’s complaint was not filed within a reasonable time after amendment to section 13 — 214 of the Code of Civil Procedure (Ill. Rev. Stat. 1981, ch. 110, par. 13 — 214), the applicable statute of limitations, and (2) that the trial court erred in ruling that the parties had not entered into an enforceable settlement agreement.

The Illinois Building Authority (IBA), the predecessor of plaintiff Capital Development Board (CDB), retained defendant Caudill, as architect, to provide the design and construction of Kishwaukee College. IBA also retained defendant Sjostrom as general contractor for the actual construction of the college. Defendant Fidelity issued a performance and payment bond on behalf of its principal, Sjostrom, made payable to the IBA. During June 1970, Sjostrom commenced construction of phase I of the college building, and.on November 13, 1972, the president of the college signed a certificate of substantial completion. Uncompleted items on a “punch list,” which included correction of leaks in the building, were to be resolved by the contractor.

Following construction of the building, water leakage through the roof continuously occurred, necessitating numerous repairs to the roof between 1972 and 1976. Throughout 1976 to 1978, the leaks increased substantially. In 1978 the CDB contacted several professional engineering firms for the purpose of obtaining an analysis of the problem. One firm, Wight & Company, was retained to inspect the structure, and in April 1979, it issued a report setting forth several design and construction errors in the roof, including the use of blast furnace slag as an aggregate, the failure to use coal-tar pitch, and deflection in the concrete roof beams. The college administration forwarded that report on May 4, 1979, to the CDB since the CDB had to approve structural repairs.

On May 21, 1981, staff of the CDB conducted a survey of the building constructed during phase I to determine the structural capacity of the roof and the means and methods of repair or replacement. As a result of that survey, the staff determined that errors in design and construction existed. In May 1982, the CDB certified the Kishwaukee College phase I structure as a design and construction error. On October 6, 1982, plaintiff filed its original complaint against defendants Caudill and Fidelity. Plaintiff added count IV to its complaint on November 29, 1982, naming Sjostrom as an additional defendant.

The original complaint was dismissed pursuant to various motions filed by defendants. On May 12, 1983, plaintiff filed a first amended complaint. On April 2, 1984, defendant Sjostrom filed a third-party complaint against third-party defendants J. W. Peters & Sons, Inc., and Carlson Roofing Company, subcontractors responsible for installation of the roof on the phase I structure.

The defendants filed motions for summary judgment and supporting memoranda of law, alleging that plaintiff’s cause of action was not brought within the time required by the pertinent statute of limitations, section 13 — 214 of the Code of Civil Procedure (Ill. Rev. Stat. 1981, ch. 110, par. 13 — 214), as that statute existed at the time the action was filed. The statute provided that an action for design and construction errors must be brought within two years from the time the person bringing the action knew or should reasonably have known of the act or omission complained of.

A hearing was held on the motions for summary judgment on February 2, 1987. On September 18, 1987, the court mailed its opinion letter to the parties informing the parties of its decision to grant defendants’ motions for summary judgment. The court directed counsel to prepare an appropriate order and to submit it to the court for signature. On October 14,1987, the court entered the order.

In the time span between the hearing on defendants’ motion for summary judgment on February 2, 1987, and the court’s opinion letter on September 18, 1987, the parties undertook settlement negotiations by letter and by telephone conversation. On February 20, 1987, defendants offered to settle for the sum of $48,333.33. In a letter dated July 1, 1987, plaintiff acknowledged receipt of the $48,333.33 offer by defendants but indicated that the CDB wanted to settle for $75,000. On July 15, 1987, defendants sent a letter to plaintiff in which defendants referred to a prior offer of $58,333.33 and presented three alternatives for settlement.

On September 21, 1987, the parties received the trial court’s September 18 opinion letter. On September 21, plaintiff’s counsel, Howard Feldman, telephoned counsel representing the defendants, Thomas Greenwald, to accept defendants’ offer of settlement as set forth in defendants’ July 15 letter. When defendants failed to comply with the alleged settlement agreement, plaintiff filed a motion to enforce the settlement agreement. A hearing was conducted on plaintiff’s motion on November 6, 1987. At the conclusion of that hearing the trial court denied plaintiff’s motion, finding that defendants’ letter of July 15,1987, did not constitute an offer.

Plaintiff appeals the trial court’s order of October 14, 1987, granting defendants’ motions for summary judgment and its order of November 6, 1987, denying plaintiff’s motion to enforce the settlement agreement.

In its first contention plaintiff argues that the trial court erred in finding that plaintiff failed to file its complaint within a reasonable time after the 1981 amendment to the statute of limitations specifically applicable to the construction industry and to this cause. That amendment to section 13 — 214 of the Code of Civil Procedure (Ill. Rev. Stat. 1981, ch. 110, par. 13 — 214), effective September 16, 1981, had the effect of deleting subparagraph (e) of section 13 — 214, a savings clause, which provided:

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P. EX REL. SKINNER v. Caudill Rowlett Scott
527 N.E.2d 146 (Appellate Court of Illinois, 1988)

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Bluebook (online)
527 N.E.2d 146, 172 Ill. App. 3d 790, 122 Ill. Dec. 774, 1988 Ill. App. LEXIS 1118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-skinner-v-scott-illappct-1988.