Pay-if-paid and pay-when-paid clauses permeate large construction projects In theory, the clauses protect a contractor from downstream liability where its upstream or hiring party (usually the owner) fails to pay. Beal Bank Nevada v. Northshore Center THC, LLC, 2016 IL App (1st) 151697 examines the fine-line distinction between PIP and PWP contract terms. a lender …
Category Archives: Real estate litigation
No-Reliance Clauses and Fraud Pleading Requirements – IL Fed Court Weighs In
The Case: Walls v. VreChicago Eleven, LLC, 2016 WL 5477554 (N.D.Ill. 2016) Issues: 1/ Viability of ‘no-reliance’ clauses and as-is clauses in commercial real estate contracts; and 2/ Fraud pleading requirements under Federal Rules of Civil Procedure Facts: Property purchaser plaintiffs claimed they were fraudulently induced to buy property by defendants who falsely claim the …
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General Contractor Insolvency, Not Owner Recourse, is Key Implied Warranty of Habitability Test – IL First Dist.
In Sienna Court Condominium Association v. Champion Aluminum Corporation, 2017 IL App (1st) 143364, the First District addressed two important issues of common law and statutory corporate law. It first considered when a property owner could sue the subcontractor of a defunct general contractor where there was no contractual relationship between the owner and subcontractor and …