R & G, Inc. v. State

51 Ill. Ct. Cl. 297, 1999 Ill. Ct. Cl. LEXIS 33
CourtCourt of Claims of Illinois
DecidedJuly 21, 1999
DocketNo. 95-CC-0614
StatusPublished

This text of 51 Ill. Ct. Cl. 297 (R & G, Inc. v. State) is published on Counsel Stack Legal Research, covering Court of Claims of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R & G, Inc. v. State, 51 Ill. Ct. Cl. 297, 1999 Ill. Ct. Cl. LEXIS 33 (Ill. Super. Ct. 1999).

Opinion

OPINION

Epstein, J.

This emergency oral contract claim against the Respondents Department of Transportation (“IDOT”), now pending on the Claimants amended complaint, is back before the Court on Respondents second summary judgment motion. This motion follows our two prior rulings which, inter alia, denied the first summary judgment motion without prejudice (see order of November 26, 1996; supplemental opinion of May 7,1997).

Respondents Second Summary Judgment Motion:

Issues Raised

The Respondents renewed motion for summary judgment (filed August 14, 1998), considered with the Claimants response thereto (filed December 23,1998), raise the following issues:

1. Was an oral contract formed between the Claimant and IDOT for Claimant to render labor and equipment services to IDOT for compensation, as Claimant contends; or was Claimant a volunteer in the 1993 flood control efforts, and no such contract was formed, as Respondent contends?

Respondent argues that undisputed facts, at best, show a voluntary undertaking without any IDOT commitment to pay, and a misunderstanding, at worst, precluding a contract formation. Claimant says there are disputed issues of material fact that preclude summary judgment.

2. Is this oral contract claim barred by section 9.01 of the (former) Illinois Purchasing Act (30 ILCS 505/9.01) as it was effective in 1993, which prohibited unwritten “State agency contracts for services involving professional or artistic skills * * * involving more than $5,000 * * *” and by section 10 of that Act which provided that a State agency contract “in violation of this Act * * * is void and of no effect.”

Citing precedent of this Court and the Supreme Court, Respondent argues that the alleged oral contract in this case — or at least recovery of any amount in excess of $5,000 on such contract — is barred by this statute which was applicable at the time. Claimant contends that this argument was already decided by our supplemental opinion (May 7, 1997) in which we rejected a virtually identical defense under section 15 of the State Comptrollers Act. (15 ILCS 405/15.) Claimant also argues that section 9.01 of the former Purchasing Act (30 ILCS 505/9.01) is inapplicable to the alleged contract in this case on the theory that sandbag filling is not a “professional or artistic” service.

3. Is this emergency oral contract claim barred by non-compliance with the IDOT regulations governing emergency purchases (44 Ill. Admin. Code 685.295(c), as enabled by 44 Ill. Admin. Code 4200.60, and IDOT Order 21-2, as amended July 1, 1989), which requires an IDOT emergency affidavit and a later written contract, as well as filing of an authorizing affidavit with the Auditor General.

Respondent contends that the (former) Purchasing Act applied to “emergency” contracts, and thus, is fully applicable to this claimed contract, along with the IDOT regulations governing emergency purchases. Claimant contends that the entirely of the section 9.01 Purchasing Act authorization, including any authority to IDOT to regulate emergency purchases of services, is not applicable to the services or contract involved in this claim.

4. Is this claim outside the jurisdiction of the Court of Claims as an implied contract or quantum meruit claim?

Respondent argues that this Court lacks jurisdiction to make an award on the equitable unjust enrichment doctrine. Claimant does not address this issue in its response.

5. Is the alleged contract too vague and uncertain to be valid and enforceable?

Respondent contends that the alleged oral contract is far too indefinite and vague to be capable of enforcement, due to its lack of specificity of duration, equipment involved, equipment rental rates, number of workers, applicability of prevailing wage rates, ability to subcontract, and other unenumerated terms. Claimant contends that this issue was decided against the Respondent in our order of November 26, 1996; and adopts its prior arguments to this Court.

Analysis: The Factual Issues

The threshhold issue of whether or not an oral agreement was made is entirely a fact issue. Both parties have produced sworn testimony supporting their positions on this issue and on what appears to be a key sub-issue: whether Claimant was a volunteer, or whether the parties agreed that Claimants work was to be compensated. Both positions are competently evidenced and persuasive. Absent a dispositive admission, this requires a determination by a finder of fact.

Respondent asserts a subjective “misunderstanding” between the IDOT official and Claimants personnel, and contends that the misunderstanding precludes a contract as a matter of law. The Court does not agree. We find that this record is replete with disputed facts on the misunderstanding issue as well as other contract-formation issues, which precludes summary judgment. We are also unconvinced that the mere fact that one party to a conversation had a different subjective understanding of the words used than did the listener is a per se legal defense to a “meeting of the minds” for contract formation purposes, although it may be a defense in some circumstances.

A genuine misunderstanding of what was meant by a particular statement may or may not defeat an “agreement,” depending on the particular context and circumstances. The issue of contract formation is ultimately determined by the parties’ intent as manifested by their communicated words and conduct which often take meaning from the particular context.

In this case, Respondents “misunderstanding” defense relies on an alleged difference in understanding of an IDOT statement that the Claimant “would be taken care of’ (R. Thursby deposition 21, excerpted in Respondent’s memorandum of law in support of * * * motion for summaiy judgment, at 6). There seems to be no dispute that the statement was made and communicated (which is not the usual oral contract dispute over who said what to whom).

Recause we find, on the current record, that the statement is somewhat ambiguous, we conclude that summary judgment must be denied. (Indeed, the statement itself is closer to justifying a finding for the Claimant than for the Respondent, but the ambiguity in the words requires us to defer our consideration for a fuller record.) The determination in this case of what was, or was not, reasonably and objectively communicated between the parties at the sand pit during the 1993 flood fight — and whether the parties’ words and conduct manifested an agreement — is peculiarly a determination that should be made by the trier of fact, preferably on a full record with an opportunity to ascertain the credibility of the witnesses.

Analysis: The Legal Issues

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Related

§ 505/9.01
Illinois 30 § 505/9.01
§ 405/15
Illinois 15 § 405/15
§ 505/10
Illinois 30 § 505/10
§ 505/8
Illinois 705 § 505/8

Cite This Page — Counsel Stack

Bluebook (online)
51 Ill. Ct. Cl. 297, 1999 Ill. Ct. Cl. LEXIS 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-g-inc-v-state-ilclaimsct-1999.