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Kedzie & 103rd Currency Exchange, Inc. v. Hodge

Supreme Court of Illinois
619 N.E.2d 732 (1993)


Beulah Hodge (defendant) and her husband entered into a contract with Fred Fentress (defendant) under which Fentress agreed to install a flood-control system at the Hodges’ home. Hodge drafted a check for $500 that was payable to Fentress. Fentress failed to install the system, and Hodge stopped payment on the check. Fentress presented the check to Kedzie & 103rd Street Currency Exchange (Currency Exchange) (plaintiff) and received payment. Pursuant to the stop-payment order, Hodge’s bank refused to pay Currency Exchange on the check. Currency Exchange sued Hodge and Fentress, claiming Currency Exchange was a holder in due course of the check. Hodge moved to dismiss the action based on the illegality of the transaction, arguing that the contract between the Hodges and Fentress was void, because Fentress was not a licensed plumber as required under the Illinois Plumbing License Law. The circuit court granted Hodge’s motion and dismissed the action. The appellate court affirmed. Currency Exchange appealed.

Rule of Law


Holding and Reasoning (Freeman, J.)

Dissent (Bilandic, J.)

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