Cow., Claimant, u. THE STATE OF ILLINOIS, AIRWORK Respondent.
Case summary
Claimant sought interest on an unpaid invoice under the Prompt Payments Act, but the court dismissed the claim because the Department of Transportation's ability to pay the invoice ended before any interest obligation began, and the Prompt Payments Act does not authorize interest on claims in the Court of Claims after the agency's ability to pay has ended.
Statutes cited: Ill. Rev. Stat. 1987, ch. 110, par. 2-619(a)(9); Ill. Rev. Stat. 1987, ch. 127, par. 132.401 et seq.
Cases cited: Branch-Nicoloff Co. v. State (1988), 40 Ill. Ct. Cl. 253
AI-generated summary from the opinion text — may contain errors. The opinion text and PDF above are the official record.
Headnotes
- NEIL F. HARTICAN, Attorney General (STEVEN SCHMALL, Assistant Attorney General, of counsel), for Respondent.
- CoNTmcrs-interest on claims accruing after an agency’s ability to pay is ended. Under the Prompt Payments Act, interest on claims which accrue after an agency’s responsibility to pay has ended, is not authorized.
- SAME-ability to pay invoice ended before obligation to pay interest begun-cloim dismissed. The Court of Claims dismissed an action for interest, for the time a claim was pending, where the agency’s ability to pay the invoice ended before an obligation to pay interest would have begun.
ORDER
MONTANA, C.J.
This cause coming to be heard on the motion of Respondent to dismiss Claimant’s claim, due notice having been given the parties hereto, and the Court being fully advised in the premises;
The Court finds: That Respondent’s motion was brought pursuant to section 2-619(a)(9) of the Code of Civil Procedure (Ill. Rev. Stat. 1987, ch. 110, par. 2- 619(a)(9)). That Claimant filed this action as a lapsed appropriation matter, and seeks interest on an invoice dated 10/18/88, for which suit was filed in the Court of Claims on 10/25/88 as No. 89-CC-1154. Claimant appears to seek interest for the time that the claim was pending before this Court.
We find that even though Claimant has invoked “An Act to require prompt payments by the State of Illinois for goods or services” (Ill. Rev. Stat. 1987, ch. 127, par.
[*354] 132.401 et seq.), the invoice at issue herein was filed against the Department of Transportation one year and 18 days after the end of the 90-day grace period following the end of the fiscal year and the Department’s ability to pay such invoice. After September 30, the Department was unable, by law, to pay any bills for the prior fiscal year and any vendors with unpaid bills had to file in the Court of Claims.
This Court has previously ruled, in Branch-Nicoloff Co. v . State (1988), 40 Ill. Ct. C1. 253, that the Prompt Payments Act (Ill. Rev. Stat. 1987, ch. 127, par. 132.401 et seq.), does not authorize interest on claims in the Court of Claims which would accrue after the responsible agency’s ability to pay has ended.
We find that the ability of the Department of Transportation to pay the invoice at issue herein ended before an obligation to pay interest would have begun.
It is hereby ordered that the motion of Respondent be, and the same hereby is granted, and Claimant’s claim is dismissed, with prejudice.