Gust K. Newberg, Inc. v. Illinois State Toll Highway Authority

In 1975, Newberg-Krug-Brighton (hereinafter New-berg), a joint venture consisting of three corporations, filed a two-count complaint in the circuit court of Du Page County against the Illinois State Toll Highway Authority (the Authority) seeking $9 million in damages for an alleged breach of contract in connection with the construction of two sections of the East-West Tollway extension.

After the complaint was filed, Richard Blakely, the Authority’s executive director, directed Assistant Attorney General John Lavery, chief of the legal department of the Authority, to enter into settlement…