Illinois Appellate Court Attempts to Draw the Line Between Contract and Quasi-Contract; Holds That Quantum Meruit Is Only Available Where Disputed Work is Outside the “General Subject Matter” of the Contract

Archon Construction Co. v. U.S. Shelter, LLC, 2017 Ill. App. LEXIS 197 (March 31, 2017)

U.S. Shelter, LLC, a developer, undertook to develop a new residential subdivision in Elgin, Illinois. As part of that project, U.S. Shelter retained Archon Construction Company, Inc. (“Archon”) to install the sanitary sewer system for $890,955.29.

Archon’s contract provided that after the system was completed, Archon would videotape the interior of the piping, to allow the City of Elgin (“City”) to inspect and determine the acceptability of the system as installed.

Archon completed its work in August of 2005. In early 2007, the City requested that Archon perform the required videotaping.  Archon complied.

After viewing the videotapes, the City announced that the system, as installed, was not acceptable and that certain repairs were necessary. In particular, the City specified that one of the lines running through the system needed to be replaced because of cracking, the existence of gravel in the lines, and other issues.  While the entire sewer system had been constructed with PVC pipe, the City directed that this line be replaced with ductile iron pipe. Continue reading “Illinois Appellate Court Attempts to Draw the Line Between Contract and Quasi-Contract; Holds That Quantum Meruit Is Only Available Where Disputed Work is Outside the “General Subject Matter” of the Contract”