(Modified upon denial of rehearing 2/10/16.) City entered into agreement with developer, wherein developer agreed to develop certain property as a residential planned development and to make property improvements at its own expense, and City approved development and agreed to annex property into City. Developer later filed bankruptcy.When developer's bankruptcy trust sold all remaining property to another company, the sale discharged developer's obligation to complete improvements, and underlying obligation was assumed by buyer. Buyer's successor liability was a matter of public record and statutory law, which is incorporated into every contract unless contract provides to the contrary. Surety can look to buyer to either perform buyer's obligations under Annexation Agreement or pay costs sustained by surety if it is forced to pay City due to buyer's failure to perform.(BURKE and SPENCE, concurring.)
Illinois Appellate Court
Civil Court
Real Estate