ACA Illinois Student Housing v. Larson Company, LLC

── ACA Illinois Student Housing v. Larson Company, LLC ── Court: Appellate Court of Illinois Date: April 23, 2026 Category: General NOTICE 2026 IL App (5th) 250208-U NOTICE Decision filed 04/23/26. The This order was filed under text of this decision may be NO. 5-25-0208 Supreme Court Rule 23 and is changed or corrected prior to not precedent except in the the filing of a Petition for IN THE limited circumstances allowed Rehearing or the disposition of under Rule 23(e)(1). the same. APPELLATE COURT OF ILLINOIS FIFTH DISTRICT ______________________________________________________________________________ ACA ILLINOIS TIER 1 STUDENT HOUSING DST, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Champaign County. ) v. ) No. 23-LA-165 ) LARSON COMPANY, LLC; XFD, LLC; 206 GREEN ) STREET, LLC; KAP ARCHITECTURE, LLC; and ) BROEREN RUSSO CONSTRUCTION, INC., ) ) Defendants ) ) (Larson Company, LLC; XFD, LLC; KAP Architecture, ) Honorable LLC; and Broeren Russo Construction, Inc., Defendants- ) Benjamin W. Dyer, Appellees). ) Judge, presiding. ______________________________________________________________________________ JUSTICE VAUGHAN delivered the judgment of the court. Justices Boie and Clarke concurred in the judgment. ORDER ¶1 Held: The circuit court’s order dismissing plaintiff’s complaint is affirmed where plaintiff had no standing to bring its breach of implied warrant of habitability claims, no privity for the remaining breach of implied warranty claims exists, and its claim for negligence was precluded by the Moorman doctrine. ¶2 Plaintiff, ACA Illinois Tier 1 Student Housing DST (ACA), appeals the circuit court’s dismissal of its claims for breach of implied warranty and negligence. The claims were filed against defendants, Larson Company, LLC; XFD, LLC; KAP Architecture, LLC; and Broeren Russo Construction, Inc. (collectively defendants), related to the design and construction of a six-story 1 residential building located at 212 E. Green Street in Champaign, Illinois, purchased by ACA. For the following reasons, we affirm. ¶3 I. BACKGROUND ¶4 On December 16, 2022, ACA filed an eight-count verified complaint against defendants 1 in Cook County, Illinois. The Cook County circuit court ultimately determined that venue was improper and transferred the case to Champaign County, Illinois. The introductory paragraph of the complaint claimed that ACA sought “to recover compensatory damages to redress *** Defendants’ breaches of their respective duties under professional and construction contracts and their implied warranties, in connection with their development and construction of a six story residential building *** in Champaign, Illinois.” ACA alleged that Larson Company, LLC (Larson) and XFD, LLC (XFD) (collectively Developers) had a development plan to sell the building after construction and that Dev