An Illinois Appellate Court upheld a court order awarding a Village $45,000 in fines against a company that failed to timely install a fire alarm
system in breach of a compliance agreement.
Village
of Plainfield v. Ionia Real Properties, LLC

In 2017, a real estate company purchased a vacant
building within the Village. For the following year, the 
company repeatedly failed fire
safety inspections for failure to install a proper fire alarm system. In 2018, the company and the 
Village entered into an agreement to resolve the issue. The compliance agreement required the company to install a fire alarm system within 60 days. It also provided that a $500 per day fine would be assessed if the company failed to install the system. 

When the fires system was not installed in the time period required by the compliance agreement, the Village filed a lawsuit against the company, asking the court to impose the fine for the
company’s late compliance. Initially, the court ruled against the Village but in response to the Village’s motion to reconsider, ultimately ruled ruled in favor of the 
Village and awarded it $45,000 in fines pursuant to the compliance agreement.

On appeal, the company argued the circuit court erred when it:

(1) ruled in favor of the Village;

(2) denied the company’s motion to disqualify the Village’s attorney;

(3) granted the Village’s motion to stop the company’s
subpoenas for witnesses; and

(4) entered a $45,000 judgment against the company.

The Appellate Court upheld the circuit court’s ruling in favor of the Village, finding that the delay on installing the fire alarm system was due solely to the company’s failure to sign a price quote
with the installation company until four days prior to the agreement’s 60-day
deadline, which led to the late work and resulted in a material breach of the compliance agreement. The Appellate Court also rejected the company’s argument that the Village attorney should have been disqualified or that the subpoenas were necessary. 
Finally, the Appellate Court noted that the compliance agreement clearly stated the company would be fined $500 per day if it failed to install the fire alarm system by the agreement’s deadline, which amounted to a $45,000
penalty. 

Post Authored by Daniel Lev & Julie Tappendorf, Ancel Glink