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U.S. NeuroSurgical, Inc. v. City of Chicago, No. 07-3520

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By FindLaw Staff on July 09, 2009 3:36 PM

In a breach of contract action, district court judgment for defendant is affirmed where: 1) the purported agreement that the project manager entered into with plaintiff on the city's behalf exceeds the limits of the city's power to contract, as the project manager was not the city's procurement officer and had no statutory authority to bind the city in contract, and defendant is charged with knowing the level of authority the project manager actually possessed; 2) any oral modifications to the contract prohibited both by the contract and by statute; 3) the purported contract was prohibited by law and therefore void, and cannot be rendered valid by estoppel or ratification; 4) since the purported modified contract was void for lack of authority, the city was not liable for additional payment, and thus defendant cannot create an original liability on an account stated theory; and 5) the court did not abuse its discretion in awarding costs to the city. 

Read U.S. NeuroSurgical, Inc. v. City of Chicago, No. 07-3520

Appellate Information
Appeal from the United States District Court for the Northern District of Illinois, Eastern Division.on.
Argued January 23, 2009
Decided July 9, 2009

Before BAUER, EVANS, and WILLIAMS, Circuit Judges.
Opinion by BAUER, Circuit Judge.

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