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J. Huizinga Cartage Co. v. Bedrock Enterprises
Citations: 177 Ill. App. 3d 346; 532 N.E.2d 339; 126 Ill. Dec. 654; 1988 Ill. App. LEXIS 1692Docket: No. 88—1222
Court: Appellate Court of Illinois; December 7, 1988; Illinois; State Appellate Court
Plaintiff John Huizinga and J. Huizinga Cartage Co. sued Bedrock Enterprises and its owners, Joseph Lullo and Dr. Lawrence Lerner, to recover $3,000 for a fence that was never built. A judgment for $3,000 was entered against Lullo for breach of contract, while a second count regarding a promissory note was dismissed. Following a bench trial, the court found Lerner and Lullo jointly and severally liable for the breach. Huizinga testified that he paid Lullo $3,000 for the fence, which was documented through a contract and a land trust document signed by Lerner. Lerner, who claimed to be a corporate officer of Bedrock, argued he should not be held liable, stating that Bedrock was not a duly authorized corporation due to a lack of formalities such as meetings or a bank account. The court found that no valid corporation existed and determined that Lerner and Lullo operated as partners instead. As partners, both were jointly liable for debts incurred by their business. The court cited Illinois law, which states that partners act as agents for one another, establishing Lerner's liability to Huizinga based on his representations of partnership with Lullo. Lerner's consent to Lullo's portrayal as a partner, as evidenced by their joint signatures on documents, solidified his liability for the partnership’s obligations. The circuit court's judgment against Lerner was affirmed, with both he and Lullo found liable for the $3,000.