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Monday v. Ace Home Improvement Services, Inc.

Citations: 248 Ill. App. 3d 481; 618 N.E.2d 563Docket: No. 1 — 92—0424

Court: Appellate Court of Illinois; June 10, 1993; Illinois; State Appellate Court

Narrative Opinion Summary

In this case, the plaintiff, Erlinda Monday, filed a legal action against Ace Home Improvement Services, Inc. and Fleet Finance, Inc. concerning a construction contract in Cook County Circuit Court. The trial court dismissed the initial action, leading Monday to file an amended complaint for breach of contract against both defendants. Following Ace's bankruptcy declaration, the case proceeded solely against Fleet. The plaintiff argued that Ace's failure to commence work within 90 days invalidated the contract and that she could rescind the contract based on the Truth in Lending Act's Regulation Z due to changes in the loan agreement. However, the trial court granted summary judgment in favor of Fleet. On appeal, the court found that Ace's preparatory activities met the contract's commencement requirement and determined that the plaintiff waived her rescission argument by not raising it at trial. Additionally, the plaintiff's Regulation Z claim was time-barred. The appellate court affirmed the summary judgment for Fleet, concluding there was no breach of contract by Ace, and statutory limitations precluded the rescission claim against Fleet.

Legal Issues Addressed

Breach of Contract Interpretation

Application: The court interpreted the clause regarding the commencement of work to include preparatory actions, not just actual construction.

Reasoning: Evidence shows that Ace undertook significant preparatory actions before the 90-day deadline, such as hiring a survey company, obtaining architectural plans, and contracting for custom windows.

Truth in Lending Act and Regulation Z

Application: The plaintiff's claim for rescission under Regulation Z was barred by the statute of limitations as it was filed after the permissible period.

Reasoning: As the plaintiff raised this issue in a motion filed on November 21, 1991, it is barred by the statute of limitations.

Waiver of Arguments Not Raised at Trial

Application: The plaintiff's argument regarding the right to rescind the contract was not considered on appeal because it was not raised at trial.

Reasoning: Additionally, the plaintiff's second argument regarding her right to rescind the contract based on the first paragraph of clause 10 was not raised until the appeal, leading the court to conclude that she waived this argument by failing to present it at trial.