Wednesday, December 18, 2013

Western Waterproofing Co., Inc. v. Springfield Housing Authority case brief

Western Waterproofing Co., Inc. v. Springfield Housing Authority case brief summary
669 F.Supp. 901 (1987)


CASE SYNOPSIS
Plaintiff subcontractors brought an action against defendant housing authority to recover amounts due under a construction contract. Both parties filed motions for summary judgment.

CASE FACTS
The subcontractors performed work on a federally funded construction project pursuant to a contract with the general contractor. The general contractor was under contract with the authority to complete the project. When the subcontractors were not paid, they secured a judgment against the general contractor. When they were unable to collect on this judgment, they sought to recover directly from the authority, which had not secured a payment bond. The subcontractors argued that they were third party beneficiaries of the contract between the general contractor and the authority. The authority disagreed because no payment bond was secured.

DISCUSSION

  • The court agreed with the subcontractors and granted their' motion for summary judgment. 
  • The court found that the contract did require the authority to secure a payment bond, as did Ill. Rev. Stat. ch. 29, para. 15 (1985). 
  • The court held that the subcontractors were third party beneficiaries of the contract and, thus, were able to assert the bond provision even though no bond had been procured. 
  • The court rejected the authority's argument that it was immune from liability because to have allowed for such would have been unjust.
CONCLUSION
The court granted the subcontractors' motion for summary judgment and denied the authority's same motion in the subcontractors' action to recover amounts due under a construction contract.


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