Board of Education v. Hartford Accident & Indemnity Co.

504 N.E.2d 1000 (1987)

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Board of Education v. Hartford Accident & Indemnity Co.

Illinois Appellate Court
504 N.E.2d 1000 (1987)

  • Written by Mary Pfotenhauer, JD

Facts

Kiendl Construction Company (Kiendl) agreed to build two pool facilities for the Board of Education (the board) (plaintiff). Kiendl, with Hartford Accident & Indemnity Co. (Hartford) (defendant) as surety, issued a performance bond, guaranteeing the complete performance of the construction contract, and a labor-and-material payment bond, guaranteeing Kiendl’s payment of its subcontractors and materialmen. The board sued Hartford, alleging that Kiendl failed to properly construct the pool facilities. The board sought damages under both the performance and the payment bonds. The trial court granted summary judgment on the performance bond claim, because that bond required an action to be brought within two years of the final payment, which the board failed to do. The trial court also dismissed the claim on the payment bond, finding that it was entered into for the benefit of those furnishing materials and labor for the project and not for the board’s benefit. The board appealed.

Rule of Law

Issue

Holding and Reasoning (Reinhard, J.)

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