Breach of Contract in Tollway Case Results in $25 Million

 Posted on April 23, 2025 in Civil Litigation

In 2024, a contractor awarded a $323 million contract for work on the I-294 reconstruction project was improperly terminated, resulting in a breach of contract lawsuit against the Illinois Tollway. The New York-based company claims it began work on the interchange of I-290 and I-88, only to have the contract terminated. The company claims the termination had no legal basis and resulted in harm to the company’s reputation and business.

After several months of litigation, the Illinois Tollway Board of Directors approved a $25 million settlement after acknowledging that the agency had made an administrative error when awarding the contract to the construction company. About $15 million of the settlement covers actual damages in construction costs incurred.

The Board claims the contract was canceled due to a new provision in Illinois state law that provides a bid preference for Illinois-based companies, which was inadvertently excluded from the original contract bid evaluation. If you are the victim of a breach of contract, it is important to speak to a knowledgeable Glen Ellyn, IL civil litigation attorney.  

What Is Breach of Contract?

A breach of contract occurs when one party to a valid agreement does not perform the obligations outlined in the contract. The following elements must be present for a viable breach of contract claim:

• There is a valid, enforceable contract between the parties.
• The plaintiff properly fulfilled their obligations under the contract.
• The defendant failed to fulfill their obligations under the contract.
• The plaintiff experienced damages because of the defendant’s breach of contract.

A breach of contract can be considered material, minor, or anticipatory. A material breach of contract is a substantial failure to perform, while a minor breach of contract is a less significant failure to perform. An anticipatory failure occurs when there is a clear indication that a party will be unable to complete the stated outcome by the due date.  

Supporting evidence of a breach of contract includes both written and oral contracts. There must also be proof of the plaintiff’s performance or justification of non-performance. The plaintiff must show documentation of the defendant’s failure to perform, as well as damages incurred as a direct result of the breach of contract.  

What Are the Legal Remedies for Breach of Contract?

An award of financial damages is the most common legal remedy for a breach of contract. These are known as compensatory damages, as they compensate the plaintiff for the money they would have made if not for the breach of contract. If the breach of contract was partial and the defendant carried out the majority of the contract, the plaintiff can seek damages in an amount equal to the cost of hiring someone else to complete the performance.

Punitive damages are rare and are awarded to punish the wrongdoer when they act in a malicious or fraudulent manner. Punitive damages are also intended to serve as a deterrent, making an example of the wrongdoer to prevent others from engaging in similar conduct. Restitution is awarded to restore the injured party to its original position before the creation of a contract. Restitution is often sought when a contract is voided by the courts as a result of the defendant’s incompetence.

Rescission is used to terminate a contract when the parties enter into the contract through coercion, influence, fraud, or a mistake. When rescission is used, the contractual obligations of both parties are terminated. Reformation is similar to rescission; instead of terminating the contract, the court changes the contract to correct any inequities. Specific performance occurs when the court forces the party that breached the contract to deliver promised goods or services.

Contact a DuPage County, IL Breach of Contract Lawyer

If you are the victim of a breach of contract, contacting an experienced Wheaton, IL breach of contract attorney from NN Legal Group is the best step you can take. Our attorneys are client-focused and will work to provide you with the tools you need to effectively resolve your legal issues. Call 630-474-0925 to schedule your free consultation. Hablamos Espanol.