(Court opinion corrected 7/30/20.) Court entered order subordinating the mechanic's liens of 3 mechanic's lienholders to $12 million in new debt, to be issued through receiver certificates, for improvements to secure a 10-year lease with GSA. Pursuant to Mechanics Lien Act, court had equitable power to issue receiver certificates and prioritize them over the mechanic's liens. Court abused its discretion where it concluded, without sufficient evidence, that making $12 million in receiver certificates a first lien, vis-a-vis the mechanic's liens, was in the lienholders' best interests or doing so was apparently necessary to preserve the property, over the objection of certain lienholders. No evidence was presented as to value of the building with the GSA as a tenant, or as to the current value of the building, and no appraisals, estimates, or expert testimony was entered into evidence. (BIRKETT and ZENOFF, concurring.)
Illinois Appellate Court
Civil Court
Mechanic's Liens