IL STATEAppellate Court of Illinois
1994

Barney v. Unity Paving, Inc.

266 Ill. App. 3d 13Appellate Court of Illinois • Decided 1994Enforced

HOLDING

A woman injured in a truck accident sued a general contractor and its subcontractor, claiming they breached their contract with the City of Chicago by failing to require the subcontractor to carry motor vehicle liability insurance. The Illinois Appellate Court ruled that injured third parties cannot sue for breach of insurance requirements in municipal contracts. The court found that insurance provisions in contracts are meant to protect only the contracting parties (the City and contractor), not the general public.

KEY FINDINGS

Insurance Requirements

Insurance requirements in your contracts with general contractors protect only the parties to that contract—not the public. You cannot be sued by an injured third party for failing to maintain required insurance.

Flow-Down

Make sure you obtain and provide certificates of insurance before starting work, as required by contract. Non-compliance can breach your agreement with the general contractor, even if third parties cannot sue you directly.

FULL COURT OPINION