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Western Waterproofing Co., Inc. v. Springfield Housing Authority

United States District Court for the Central District of Illinois
669 F.Supp. 901 (1987)


Facts

Western Waterproofing Co., Inc. (Western) and Mid-Continental Restoration Company, Inc. (Mid-Continental) (plaintiffs) were subcontractors on a construction project for the Springfield Housing Authority (SHA) (defendant). Pursuant to plaintiffs’ contract with the project’s general contractor, Bildoc, Inc., plaintiffs were to be paid 63 days after completion of the project. After plaintiffs performed in full and the project was completed, SHA paid Bildoc but Bildoc did not pay Western or Mid-Continental. Western and Mid-Continental were eventually awarded default judgments against Bildoc, but they were not able to collect. Pursuant to a section entitled “Performance and Payment Bond” within the general contract between Bildoc and SHA, Bildoc was to furnish a performance bond to SHA. Apart from the title of the provision, there was no specific reference to a payment bond. Based on that provision, plaintiffs sued SHA on the grounds that they were third-party beneficiaries of the general contract. SHA and plaintiffs each filed motions for summary judgment.

Rule of Law

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Holding and Reasoning (Mills, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
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