Opinion ID: 8414548
Heading Depth: 2
Heading Rank: 1

Heading: Plaintiff’s Breach of Contract Claim

Text: In 2007, a company called Nexxtworks contracted with two banks in the Chicago area to upgrade communications facilities. Northern Illinois Telecom, Inc. v. PNC Bank, NA (NITEL I), No. 12 C 2372, 2014 WL 4244069 (N.D. Ill. Aug. 27, 2014). Nexxtworks subcontracted with plaintiff NITEL to install data and telephone cable at four bank branches. NITEL performed the work, but Nexxtworks did not pay NITEL all that it thought it was owed. Nexxtworks asserted there had been quality problems that had required it to hire other subcontractors to redo or finish NI-TEL’s work. In 2009, before their dispute was resolved, Nexxtworks filed for bankruptcy protection in Florida and listed NI-TEL’s claim as a disputed debt. NITEL filed a proof of claim for $115,000, but the bankruptcy court disallowed it because it was filed too late. In 2012, still seeking payment for what it thought it was owed, NITEL filed this breach of contract suit in an Illinois state court against PNC Bank, which by that time had acquired both of the original banks in whose branches NITEL had installed the cables. NITEL sought damages of $81,300, plus late fees, attorney fees, and costs. With the amount in controversy greater than $75,000, PNC Bank removed the case to federal court based on diversity of citizenship under 28 U.S.C. § 1332. The problem for NITEL was that it had no contract with PNC Bank, which moved for summary judgment on that basis. District Judge St. Eve granted summary judgment for PNC Bank. NITEL I, 2014 WL 4244069. NITEL did not appeal.