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Supplier to Walsh Subcontractor Loses Appeal on Guarantee Claim: Too Late

04/13/06

An Illinois appeals court has ruled that a supplier to a subcontractor on a construction project, who sues on an alleged payment guarantee from the general contractor, has no claim --- because of a failure to get to the courthouse within four years.  The court rejected the supplier’s theory that the guarantee could be sued upon within ten years as a written contract.  Illinois Switchboard Corp v Walsh Construction Company of Illinois (1st Appellate Dist. April 2006).  The court distinguished another case from 2004 that went the other way.  Paschen Contractors v. City of Kankakee (3rd Appellate Dist.)