Article

Delay Does Not Automatically Create Laches Defense

The Seventh Circuit held that a subcontractor's failure to file suit for breach of contract clauses providing for preferred vendor status and future work until near the end of the five year agreement did not give rise to estoppel or laches defenses under Illinois law. The Court noted that the defendant did not suffer prejudice from the subcontractor's delay in filing its suit until the amount of the shortfall could be determined. Transportation & Transit Associates, Inc. v. Morrison Knudsen Corp., ___ F.3d ___, Nos. 00-1934, 00-2055, 2001 WL 705961 (7th Cir. June 25, 2001).