Appellate Court Addresses Claims Against Municipality by Tree Vendor
An Illinois Appellate Court dismissed most of the claims in a lawsuit filed by a vendor against a municipality, although it allowed an unjust enrichment claim and a fradulent misrepresentation claim to move forward in the circuit court. Johns Pro-Tree Service v. Village of Dolton.
A mayor and two village public works employees reached out to the president of a tree service company for emergency tree trimming and removal service related to a storm in June 2023. After the parties agreed to a price, the tree company completed the work. Subsequently, the parties agreed to continue the services to the village, and the village paid the full invoice amount. On September 25th, the company submitted another invoice for their work, but was told that none of the village’s vendors would be paid for their recent work due to budget restrictions. The company filed a lawsuit against the village claiming breach of contract, a violation of the Local Government Prompt Payment Act, fraudulent misrepresentation, quantum meruit, unjust enrichment, and promissory estoppel. The circuit court dismissed the case in its entirety, finding that the village was immune from liability and the alleged contract was not enforceable because it had not been approved or ratified by the village's board of trustees.
On appeal, the Appellate Court upheld the circuit court's dismissal of the breach of contract, Prompt Payment Act, quantum meruit, and promissory estoppel claims.
On the breach of contract claim, the Appellate Court held that the complaint did not show that the contract was approved by the board of trustees or that the board had delegated contracting authority to the mayor or other officials or otherwise authorized the contract with the tree service contract. As a result, the tree service company's claim that the village had breached a contract with the company was properly dismissed by the circuit court.
The Appellate Court also held that because the breach of contract claim was properly dismissed, the Local Government Payment Act claim was also properly dismissed.
On the company's quantum meruit claim, the Appellate Court found that the allegations in the complaint were insufficient to show that the board of trustees authorized the proper officials to accept or approve the terms of the transaction with the tree service company.
The Appellate Court also upheld the dismissal of the company's promissory estoppel claim finding that the company did not establish that the representatives of the village involved with the tree company had authority to make any representations or promises to the company.
However, the Appellate Court disagreed with the circuit court on the dismissal of the fraudulent misrepresentation claim, finding that the village did not meet the burden of proof by showing they were immune under the Tort Immunity Act.
The Court also disagreed with the dismissal of the tree company's unjust enrichment claim, finding that this claim was adequately pled in the complaint to survive a dismissal.
As a result, the Court sent the case back to the circuit court for further proceedings on the company's fraudulent mispresentation and unjust enrichment claims.
Post Authored by Natalie Cheung & Julie Tappendorf, Ancel Glink
