In a construction dispute arising out of a general contractor’s failure to pay a subcontractor for work performed on a project funded by local government entities, an arbitration panel awarded the subcontractor the amount of the outstanding payment. The circuit court affirmed the award but denied the subcontractor’s request for prejudgment interest and attorney fees under the Interest Act and Public Construction Bond Act and the subcontractor appealed. The appellate court affirmed, finding that the plain language of the bond stated that the payment obligations were limited to undisputed amounts so that prejudgment interest did not begin accruing until the arbitration panel resolved the issue and the panel included this in its monetary award for the subcontractor. The appellate court also held that the subcontractor was not entitled to any additional attorney fees. (REYES and D.B. WALKER, concurring)
Illinois Appellate Court
Civil Court
Public Construction Bond Act