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Construction LawThe newsletter of the ISBA’s Section on Construction Law

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Newsletter articles from 2013

Cross-collateralization clauses in real estate mortgages must comply with the Illinois Conveyances Act By Timothy J. Howard March 2013 In the case of Peoples National Bank, N.A. v. Jones, the district court held that a mortgage containing a general non-specific cross-collateralization clause did not secure any debt other than the balance due on the note specifically described in the mortgage.
Cross-collateralization clauses in real estate mortgages redux By Timothy J. Howard June 2013 The recent Seventh Circuit court decision of Peoples National Bank v. Banterra Bank will change the use of junior mortgages in commercial real estate lending.
Cypress Creek decision legislatively reversed By Paul Peterson May 2013 The practical effect of PA 97-1165 is that lien claimants will be paid their contract amount on most completed jobs whether or not they have priority over the construction lender.
Editor’s note By Samuel H. Levine October 2013 An introduction to the issue from Editor Samuel Levine.
Editor’s note By Samuel H. Levine June 2013 An introduction to the issue from Editor Samuel Levine.
Editor’s note By Samuel H. Levine May 2013 An introduction to the issue from Editor Samuel Levine.
Editor’s note By Samuel H. Levine March 2013 An introduction to the issue from Editor Samuel Levine.
Implied warranty of habitability waiver to developer not enforceable against contractor By Justin L. Weisberg June 2013 The First District Appellate Court released an opinion on June 21, 2012 which has a significant impact on many residential construction defect claims alleging a breach of the implied warranty of habitability.
In Weather-Tite’s wake—Fourth District limits owner’s exposure to subcontractor claims stemming from faulty contractor affidavits By Nathan B. Hinch October 2013 Four years later, the effects ofWeather-Tite are still being sorted out, and the recent decision of the Illinois Appellate Court, Fourth District, in Gerdau Ameristeel US, Inc. v. Broeren Russo Construction, Inc. is one of those cases.
Just because it says so, doesn’t make it so March 2013 The lesson from Westfield Insurance Co. v. FCL Builders, Inc. is that general contractors need to be more proactive in securing coverage than just obtaining a certificate of insurance.
New legislation gives mechanics lien claimants priority By Michael T. Nigro and Howard M. Turner June 2013 On February 11, 2013 the Illinois Legislature passed an amendment to the Mechanics Lien Act that reverses the effect of LaSalle National Bank vs. Cypress Creek 1, LP decided by the Illinois Supreme Court in 2011.
Protecting contractor rights in bankruptcy By Samuel H. Levine May 2013 A discussion of the bankruptcy issues most often encountered in the construction setting.
Public sector qualifications based selection of design professionals in Illinois By Bruce S. Bonczyk March 2013 Illinois is one of several states that uses a statutory system of qualifications based selection for design professionals seeking projects on the state and local levels.
So you want to go into the insurance business? Really???? By Geoff Bryce October 2013 A look at what happens if no insurance is provided, or if the insurance provided does not match what is required by the construction contract.
Subcontractor rights under the Miller Act: A case study By Joshua Atlas May 2013 In Capital Computer Group, LLC v. The Gray Insurance Company, the Eleventh Circuit Court of Appeals determined that a subcontractor who sub-subcontracted 100% of its scope of work was entitled to assert a claim under the Miller Act because the subcontractor still had obligations on the project, and a substantial and important relationship still existed with the general contractor, even if the subcontractor did not actually perform any work.
To bond or not to bond: Why is there a Question? By Paul Peterson October 2013 House Bill 2804, which will be reintroduced in the fall, will allow Illinois to join 48 other states that allow interested parties to post a statutory bond to substitute for real estate as security for paying a mechanics lien claim.