Construction Law

Construction Law

Sienna Court Condominium Ass’n v. Roszak/ADC, LLC

Illinois Supreme Court PLAs
Civil Court
Warranty of Habitability
Citation
PLA issue Date: 
September 27, 2017
Docket Number: 
No. 122022
District: 
1st Dist.

This case presents question as to whether home purchaser’s potential recovery from insurance policies held by insolvent developer or insolvent general contractor precluded him from bringing implied warranty of habitability claim against subcontractors who participated in construction of residence. Appellate Court found that home purchasers could bring such action as long as they could establish insolvency of general contractor by showing that general contractor’s liabilities exceeded value of its assets, and that general contractor had stopped paying its debts in ordinary course of business. Appellate Court similarly found that mere existence of insolvent developer’s “warranty fund” did not bar property owners from maintaining cause of action for breach of implied warranty of habitability against subcontractor of developer who participated in construction of residence.

Public Act 100-291

Topic: 
Objections to jurisdiction over the person

(Thapedi, D-Chicago; Raoul, D-Chicago) amends § 2-301 of the Code of Civil Procedure by changing the exception to the statute's general rule. The general rule is that a party may object to the court's jurisdiction (without waiving an objection to the court's jurisdiction) over the party's person by filing a motion to dismiss the entire proceeding or a motion to quash service of process, but the party must do this before they file any other pleading.

The Act's exception to this general rule of waiver allows a motion for extension of time to answer or otherwise plead or a motion filed under § 2-1301, § 2-1401, and § 2-1401.1

But it requires any motion objecting to the court's jurisdiction over the party's person under § 2-301 to be filed within 60 days of the court's order disposing of the initial motion filed under these three sections. A party may combine these motions without waiving the objection to jurisdiction.

Effective January 1, 2018.

Public Act 100-292

Topic: 
Omnibus condo legislation

(Thapedi, D-Chicago; Raoul, D-Chicago) makes numerous changes affecting community associations and condos. Among other changes, it amends the statute governing the examination of a condo association's records. In addition, it authorizes reasonable attorney's fees and costs to a unit member who prevails in an enforcement action if seeking to examine or copy (1) all contracts to which the association is a party or under which it or the unit owners have obligations and (2) the books and records for the association's current fiscal year and the last 10 fiscal years. It also reduces the time in which an association must make these records available from 30 business days to 10 business days or it will be considered a denial of the request.

It also amends the right to examine and copy the ballot and proxy information and current listing of the names, addresses, email addresses, telephone numbers, and weighted vote of all voting members. A member must have a purpose that relates to the association to exercise this right, and the board may ask for the member to so certify. The member may not seek these records for a "commercial purpose," which is defined as use in any form for sale, resale, or solicitation or advertisement for sales or services.

A member may recover attorney's fees and costs only if a court finds the board of directors acted in bad faith in denying the request. It also makes it discretionary instead of mandatory whether the association must charge for the retrieval or copying of these records.

Effective January 1, 2018.

Public Act 100-416

Topic: 
Installment Sales Contract Act

(Koehler, D-Peoria; Gordon-Booth, D-Peoria) creates the Installment Sales Contract Act. It will require that sales of residential real estate by installment contract conform to the Act and that vendors in installment real estate contracts foreclose using Illinois foreclosure law. "Residential real estate" means real estate with a dwelling structure excluding property that is sold as a part of a tract of land consisting of four acres or more that is zoned for agricultural purposes.

It applies to sellers that enter into an installment sale contract more than three times during a 12-month period to sell residential real estate. Within 10 days of the date of sale the seller must record the contract or a memorandum of the contract with the recorder of deeds. It prohibits the installment sale contract from forbidding the buyer to record the contract or a memorandum of the contract. It makes it a violation of the Consumer Fraud and Deceptive Business Practices Act to knowingly violate the Installment Sales Contract.

Effective January 1, 2018.

Public Act 100-212

Topic: 
Illinois Administrative Procedure Act

(Barickman, R-Bloomington; Andersson, R-Geneva) ensures that the appeals by citizens in administrative review actions are not thrown out of court for a scrivener's error that is called a "misnomer."

(1) It requires that final administrative orders list all of the parties of record together with their last known address of record. The final order must also include whether there are any agency rules requiring a motion for reconsideration as a part of obtaining a reviewable final administrative decision and, if so, the citation to the rule.

(2) It prohibits an action for administrative review to be dismissed for lack of jurisdiction based on the misnomer of any agency that is properly served with summons issued in the action within the applicable time limits. It also prohibits dismissal for failure to perfectly name an agent if a timely action of administrative review has been filed that identifies the final administrative decision under review and makes a good faith effort to properly name the administrative agency.

(3) It allows a court to correct misnomers for an erroneous identification of the administrative agency that was made in good faith.

Effective August 18, 2017.

231 W. Scott v. Lakeside Bank

Illinois Appellate Court
Civil Court
Construction Contracts
Citation
Case Number: 
2017 IL App (1st) 161131
Decision Date: 
Wednesday, June 28, 2017
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Reversed.
Justice: 
PUCINSKI

Court erred in entering judgment, after bench trial, against Defendant title company and in favor of Plaintiff LLC, and in concluding that Defendant had breached its fiduciary duty as construction escrowee to the LLC.  As Defendant, as escrowee, had a fiduciary duty to act only in accordance with terms of Escrow Agreement, it cannot have violated its fiduciary duty by failing to inspect construction company's work for progress and quality because Escrow Agreement imposed no such obligation. Scope of fiduciary duty can be defined by escrow agreement. (FITZGERALD SMITH and LAVIN, concurring.)

House Bill 189

Topic: 
Omnibus condo legislation

(Thapedi, D-Chicago; Raoul, D-Chicago) makes numerous changes affecting community associations and condos. Among those changes is the requirement that associations and condos that have 100 or more units to use generally accepted accounting principles in fulfilling their accounting obligations. 

House Bill 189 also changes some parts of the statute governing the examination of a condo association’s records. It authorizes reasonable attorney’s fees and costs to a unit member who prevails in an enforcement action if seeking to examine or copy (1) all contracts to which the association is a party or under which it or the unit owners have obligations; and (2) the books and records for the association’s current fiscal year and the last 10 fiscal years. It also reduces the time in which an association must make these records available from 30 business days to 10 business days or it will be considered a denial of the request.

It also amends the right to examine and copy the ballot and proxy information and current listing of the names, addresses, email addresses, telephone numbers, and weighted vote of all voting members. A member must have a purpose that relates to the association to exercise this right, and the board may ask for the member to so certify. The member may not seek these records for a “commercial purpose” that is defined as use in any form for sale, resale, or solicitation or advertisement for sales or services. House Bill 189 makes it discretionary instead of mandatory on whether the association must charge for the retrieval or copying of these records.

Passed both chambers; effective January 1, 2018 if the Governor signs the bill. 

Senate Bill 584

Topic: 
Illinois Administrative Procedure Act

(Barickman, R-Bloomington; Andersson, R-Geneva) ensures that the appeals by citizens in administrative review actions are not thrown out of court for a scrivener’s error that is called a “misnomer.” Senate Bill 584 amends the Administrative Procedure Act and the Administrative Review Law to provide a means for correcting good-faith failures to perfectly name necessary parties in actions for administrative review. The proposed legislation would do several things to resolve this problem.

Requires that final administrative orders list all of the parties of record together with their last known address of record. The final order must also include whether there are any agency rules requiring a motion for reconsideration as a part of obtaining a reviewable final administrative decision and, if so, the citation to the rule.  

Prohibits an action for administrative review to be dismissed for lack of jurisdiction based on the misnomer of any agency that is properly served with summons issued in the action within the applicable time limits. It also prohibits dismissal for failure to perfectly name an agent if a timely action of administrative review has been filed that identifies the final administrative decision under review and makes a good faith effort to properly name the administrative agency.

Allows a court to correct misnomers for an erroneous identification of the administrative agency that was made in good faith.

Passed both chambers; effective on the Governor’s signature.