PML Development LLC v. Village of Hawthorn Woods

Summary

The Illinois Supreme Court held that both parties retained viable breach-of-contract claims because each elected to continue performing despite the other party's material breach. Under the partial-breach doctrine, an injured party that continues the contract may recover damages for the other party's breach but remains obligated to perform and may be liable for its own later breach. The court reversed the appellate judgment, affirmed the judgment for PML on its claim, reversed judgment for PML on the Village's counterclaim, and remanded for recalculation and offset of damages and reconsideration of attorney fees.