university of illinois - UIHistories Project

70 BOARD OF TRUSTEES [September 18
versity with a release of all claims and waiver of all liens from Crouch-Walker
Company (a partnership hereinafter termed "Crouch-Walker"), one of Warren's
subcontractors, as is required by the contract between Warren and the University
and for the University's protection. Crouch-Walker claims that a balance
of $36,620.50 is due it from Warren under the contract between them, and also
claims that it sustained damages, consisting principally in increased costs it
alleges it incurred, in the sum of $66,265.69 in consequence of delay in the
completion of its work, for which Crouch-Walker asserts both Warren and the
University are legally liable. Warren claims that the balance due Crouch-Walker
from Warren under the contract between them is less than the amount claimed
by Crouch-Walker and denies that it is under any liability to Crouch-Walker in
connection with the latter's said claim for damages.
Completion of the building was delayed, for various reasons, until more than
two years subsequent to the date originally contemplated by the contract. Warren
and four of the other prime contractors also assert claims for damages in substantial
sums against the University because of increased costs they claim they
incurred because of the delay. The University has denied liability to any of these
contractors upon these claims because it and the architects are of the opinion
that the University was not responsible for the delay in the completion of the
building, the major portion of the responsibility for which the University and
the architects assert is properly attributable to Warren. Some of the prime
contractors asserting said claims for damages have also indicated that they
believe Warren to be largely responsible for the delay in the completion of the
building, but assert that the University is legally liable to them for the same
upon the theory that Warren was the University's agent in doing the work
contemplated by the contract between Warren and the University. Warren and
Crouch-Walker apparently assert that a portion of the delay in the completion
of the building is attributable to said other prime contractors, but also assert that
the University is liable to them therefor upon the same theory.
The University denies liability upon its part in connection with all of the
foregoing claims, but, in the event it should be held liable with respect to any
of them, it asserts that it has the legal right to recover for what it may thus
be compelled to pay from the contractor or contractors found to be responsible
for the delay.
Repeated efforts upon the part of University officers to negotiate a settlement
disposing of Crouch-Walker's claims, which might enable the University to
also dispose of the other claims, have proven unsuccessful to date with the
result that on September 6, 1956, Crouch-Walker instituted a suit in the Circuit
Court of Cook County against Warren, the University, and Seaboard Surety
Company, one of the sureties upon the performance bond given the University
by Warren, in which Crouch-Walker prays judgment against all of said defendants
in the sum of $135,000, the aggregate of Crouch-Walker's above mentioned
claims plus interest at 5 per cent per annum from April 27, 1953, the date upon
which Crouch-Walker claims it completed its work under its contract with
Warren. Summons in that suit has been served upon the University, and the
latter must file an appropriate pleading in the suit on or before October 14.
Even if the suit can be and is confined to the claims asserted by Crouch-
Walker, the litigation it will entail will be rather extensive, protracted, and
expensive. It appears unlikely, however, that the suit can or will be confined to
those claims, since it is reasonably to be anticipated that, in addition to defending
against Crouch-Walker's claims therein, Warren will probably assert its own
claims against the University in the suit and thereby broaden the issues in it to
the extent that the University may find it necessary or desirable to bring the
other prime contractors into the suit so that all of the claims asserted against
the University, and those asserted by it, arising out of the construction of the
Research and Educational Hospitals Addition and the delay in its completion will
then be litigated in this proceeding.
While the Legal Counsel will appear for and represent the University in this
litigation he will be unable, because of his other duties, to devote to it much of
the time and work which will be required. Moreover, past experience has demonstrated
that it is necessary for him to have the assistance of special counsel.
practicing in Chicago, in cases in the Cook County courts to which the University
is a party. This is true, even though the present suit, notwithstanding the