SB 2540 Headed to Governor's Desk for Signature
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We have been following Senate Bill 2540. The bill was sent to Governor Quinn for signature on May 14, 2010. The bill eliminates an ongoing issue prevalent in some recent judicial opinions and dissents regarding a private right of action under the Illinois Home Repair and Remodeling Act.
As we have discussed, recent opinions like K. Miller Constr. Co. v. McGinnis, 394 Ill. App. 3d 248, 913 N.E.2d 1147 (1st Dist. 2009); Smith v. Bogard, 377 Ill. App. 3d 842, 879 N.E.2d 543 (4th Dist. 2007); and Central Illinois Electrical Services, LLC v. Slepian, 358 Ill.App.3d 545, 831 N.E.2d 1169 (3rd Dist. 2005) have resulted in different conclusions about the rights and remedies asserted under the Act. The Illinois Supreme Court has yet to rule on the matter, although Artisan Design Build v. Bilstrom remains on the Leave to Appeal Docket for this term.
Senate Bill 2540 will entirely replace Section 30 of the Act to clarify and more accurately identify the remedies available to private parties under the Act. Specifically, it replaces a portion of the Act that declared a contractor’s practice of performing work without a contract or an informed rejection or acceptance of an arbitration provision with a clause that provides a direct private right of action for actual damages against the contractor under the Consumer Fraud Act.
Even with the Governor’s signature on Senate Bill 2540, the Illinois Supreme Court should weigh in by accepting the Artisan case and clearing up the confusion and settling these issues and giving guidance to home-repair and remodeling contractors.
