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Mor-Wood Contractors, Inc. v. Ottinger

Citations: 562 N.E.2d 1247; 205 Ill. App. 3d 132; 150 Ill. Dec. 444; 1990 Ill. App. LEXIS 1705Docket: 2-89-1320

Court: Appellate Court of Illinois; November 8, 1990; Illinois; State Appellate Court

Narrative Opinion Summary

In this case, Mor-Wood Contractors, Inc. was awarded $30,170.50 by the Appellate Court of Illinois under quantum meruit for services rendered during the partial construction of a home for Craig and Heike Ottinger. The dispute arose after Mor-Wood subcontracted work that led to permit issues and a stop-work order. The Ottingers terminated the contract, leading to a legal battle over whether the contract was rescinded or abandoned. The trial court found that the contract was rescinded upon Mor-Wood's departure following the termination letter, dismissing claims of abandonment. Mor-Wood's initial complaint included foreclosure of a mechanic's lien and breach of contract, but the court dismissed the lien due to non-compliance with the Mechanics' Liens Act. The Ottingers' counterclaims for defective work and fraudulent inducement were also dismissed. The court upheld the award under quantum meruit, citing evidence of Mor-Wood's expenditures and the quality of work. The Ottingers' appeal challenged the interpretation of contract termination and the calculation of damages, but the court affirmed the trial court's decision, finding no error in the quantum meruit award and denying the Ottingers' claims for additional credits.

Legal Issues Addressed

Contract Rescission vs. Abandonment

Application: The court determined that the contract was rescinded rather than abandoned, as the Ottingers' termination led to Mor-Wood's departure, which constituted an effective rescission.

Reasoning: The trial court determined that the Ottingers' termination of Mor-Wood and Mor-Wood's subsequent evacuation effectively rescinded the contract.

Contractual Rights and Termination

Application: The court interpreted the Ottingers' letter demanding work cessation as an intent to terminate the contract, despite their assertion of a right to remedy deficiencies under the contract.

Reasoning: The Ottingers argue that the letter did not effectively terminate the contract or rescind it...but the court believes the language evidences an intention to terminate the contract.

Measure of Recovery in Quantum Meruit

Application: The court found that the reasonable value of services rendered by Mor-Wood was supported by evidence, including testimony on expenditures and the quality of work completed.

Reasoning: The appropriate measure of recovery is the reasonable value of services provided, which the Ottingers disputed on the grounds of insufficient evidence.

Mechanics' Liens Act Compliance

Application: The court dismissed Mor-Wood's complaint for foreclosure of its mechanic's lien due to non-compliance with the Mechanics' Liens Act.

Reasoning: The trial court dismissed Mor-Wood's complaint for foreclosure of its mechanic's lien due to non-compliance with the Mechanics' Liens Act.

Quantum Meruit Recovery

Application: The court awarded Mor-Wood Contractors $30,170.50 under quantum meruit for services rendered before the contract's rescission.

Reasoning: Mor-Wood Contractors, Inc. was awarded $30,170.50 by the Appellate Court of Illinois under quantum meruit for services rendered in partially constructing a home for defendants Craig and Heike Ottinger.