Judge Joel Chupack has rejected the claim made by builders in a Chicago area road construction company run by members of the Palumbo family. The company, Builders Companies, had sued the Illinois Department of Transportation (IDOT) over millions of dollars in taxpayer-funded contracts that were put on hold after IDOT launched an internal investigation.
The Palumbo family, including Sebastian "Sam" Palumbo and his daughter Kaitlyn Palumbo Gandy, have a history of involvement in road construction. However, Palumbo was barred from federal and state projects due to a 1999 plea deal where he admitted to a scam that shortchanged union employees' benefit plans.
The company argued that it had a clear legal right to the contracts, which IDOT was required by law to award within 45 days of bid submission. However, Chupack ruled in favor of IDOT, stating that the agency has discretion over contract awards and can reject bids if it is in the public's best interest.
The ruling does not resolve the underlying questions about Palumbo's involvement with the company, but it suggests that Chupack has found no evidence to support Builders' claim. The status of IDOT's internal investigation remains unclear, and the agency has stated that it will review the ruling to determine next steps.
Builders Companies is part of a consortium of several related businesses, including Hillside-based Builders Paving LLC, which was allowed to keep bidding for IDOT work despite being barred from federal and state projects. The company ended up as the apparent low bidder on more than $50 million in projects but was unable to break ground or get paid.
The ruling has implications for how IDOT handles contract awards in the future, with Michael Sturino of the Illinois Road & Transportation Builders Association stating that the decision should be used judiciously.
The Palumbo family, including Sebastian "Sam" Palumbo and his daughter Kaitlyn Palumbo Gandy, have a history of involvement in road construction. However, Palumbo was barred from federal and state projects due to a 1999 plea deal where he admitted to a scam that shortchanged union employees' benefit plans.
The company argued that it had a clear legal right to the contracts, which IDOT was required by law to award within 45 days of bid submission. However, Chupack ruled in favor of IDOT, stating that the agency has discretion over contract awards and can reject bids if it is in the public's best interest.
The ruling does not resolve the underlying questions about Palumbo's involvement with the company, but it suggests that Chupack has found no evidence to support Builders' claim. The status of IDOT's internal investigation remains unclear, and the agency has stated that it will review the ruling to determine next steps.
Builders Companies is part of a consortium of several related businesses, including Hillside-based Builders Paving LLC, which was allowed to keep bidding for IDOT work despite being barred from federal and state projects. The company ended up as the apparent low bidder on more than $50 million in projects but was unable to break ground or get paid.
The ruling has implications for how IDOT handles contract awards in the future, with Michael Sturino of the Illinois Road & Transportation Builders Association stating that the decision should be used judiciously.