Construction Law

Construction Law

House Bill 3434

Topic: 
The Residential Real Property Disclosure Act

(Wheeler, Keith; R-North Aurora) provides upon signing and dating the disclosure report, the prospective buyer accepts and acknowledges that the prospective buyer has received the residential real property disclosure report form in its entirety, including the disclosure report and a copy of the Act. Scheduled for hearing in House Judiciary Committee March 8. 

House Bill 2615

Topic: 
The Mechanics Lien Act

(McDermed, R-Frankfort) provides an owner, contractor, or subcontractor may not, by contract or otherwise, waive, affect, or impair any other claimant’s rights unless the claimant executes and delivers a waiver and release under specified conditions and in conformance with a statutory form. Includes some exceptions. Scheduled for hearing in House Judiciary Committee March 8. 

 

Sienna Court Condominium Ass'n v. Champion Aluminum Corp.

Illinois Appellate Court
Civil Court
Implied Warranty of Habitability
Citation
Case Number: 
2017 IL App (1st) 143364
Decision Date: 
Friday, February 17, 2017
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Affirmed and certified questions answered.
Justice: 
CUNNINGHAM

Three consolidated appeals, all arising from condominium association's suit alleging defects in design and construction of a condo development in Evanston. Court properly dismissed claims for breach of implied warranty of habitability, as such claims may not be asserted against design professionals and materials suppliers who did not actually perform construction work. A property owner is not barred from asserting claim of breach of implied warranty of habitability against subcontractor of insolvent developer or general contractor. Court properly dismissed counterclaims of condo development's general contractor (which is insolvent and has been dissolved), as counterclaims were not asserted within a reasonable time after its dissolution. (HOFFMAN and DELORT, concurring.)

Senate Bill 951

Topic: 
Illinois Administrative Procedure Act

(Oberweis, R-Sugar Grove) provides that the notice to parties in a contested case under the Act shall be served, among other forms of service, by electronic mail. Provides that parties in a contested case under the Act shall be notified, among other forms of notification, by electronic mail of any decision or order in that case. 

Provides that an agency may require all attorneys to designate an electronic mail address to which all documents required under certain specified sections may be transmitted. Provides that if an attorney is required to designate an electronic mail address, he or she must designate one primary electronic mail address, and may designate no more than two secondary electronic mail addresses. 

Provides that an agency may request, but not require, an unrepresented party to designate an electronic mail address to which all documents required under certain specified sections may be transmitted. 

Allows an agency to, by rule, make electronic mail the default option for service of documents. Provides that service by electronic mail is complete on the first business day following transmission. It has just been introduced. 

 

 

 

Senate Bill 584

Topic: 
Administrative Review Law

(Barickman, R-Bloomington) provides a means for correcting inadvertent failures to correctly name necessary parties in actions for administrative review, which are called misnomers.

(1) It amends the Administrative Procedure Act (APA) to mandate 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 rules citation. 

(2) It amends the ARL to prohibit 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 amends the ARL to allow a court to correct misnomers for an erroneous identification of the administrative agency.

Senate Bill 584 passed out of Senate Judiciary Committee yesterday but will receive some tweaking amendments. 

Senate Bill 584

Topic: 
Administrative Procedure Act

(Barickman, R-Bloomington) provides a means for correcting inadvertent failures to name necessary parties in actions for administrative review.

(1) It amends the Administrative Procedure Act (APA) to mandate 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 rules citation. 

(2) It also amends the APA to allow service by electronic mail if agreed to by the parties in contested cases.  

(3) It amends the Administrative Review Law (ARL) in the Code of Civil Procedure to state that this Article is to be liberally construed in the interests of justice to grant an orderly method of judicial review of administrative agency decisions.

(4) It amends the ARL to prohibit 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.

(5) It amends the ARL to allow a court to correct misnomers for an erroneous identification of the administrative agency.

Senate Bill 584 was just introduced.

 

Senate Bill 9

Topic: 
Business Opportunity Tax Act

(Hutchinson, D-Chicago Heights) creates the Business Opportunity Tax that imposes a tax on all entities that issue a Form W-2 or a Form 1099 to a resident of Illinois. It imposes a sliding scale of taxation based on the employer’s total Illinois payroll as follows. (1) if the taxpayer’s total Illinois payroll for the taxable year is less than $100,000, then the annual tax is $225; (2) if the taxpayer’s total Illinois payroll for the taxable year is $100,000 or more but less than $250,000, then the annual tax is $750; (3) if the taxpayer’s total Illinois payroll for the taxable year is $250,000 or more but less than $500,000, then the annual tax is $3,750; (4) if the taxpayer’s total Illinois payroll for the taxable year is $500,000 or more but less than $1,500,000, then the annual tax is $7,500; and (5) if the taxpayer’s total Illinois payroll for the taxable year is $1,500,000 or more, then the annual tax is $15,000.

The following are exempt from taxation under this Act: (1) governmental employers described in Section 707 of the Illinois Income Tax Act; and (2) not-for-profit corporations that are exempt from taxation under Sections 501(c) or 501(d) of the Internal Revenue Code or organized under the General Not For Profit Corporation Act of 1986. Senate Amendment No. 2 becomes the bill and was just filed. It is part of the “grand bargain” being attempted by Senate leaders.

 

Empress Casino Joliet Corporation v. W.E. O'Neil Construction Co.

Illinois Appellate Court
Civil Court
Subrogation
Citation
Case Number: 
2016 IL App (1st) 151166
Decision Date: 
Wednesday, November 16, 2016
District: 
1st Dist.
Division/County: 
Cook Co.
Holding: 
Affirmed in part and reversed and remanded in part.
Justice: 
FITZGERALD SMITH

(Court opinion corrected 12/6/16.) Fire occurred during extensive renovation project at casino, resulting in extensive damage to casino. Casino received $81.15 million in insurance payments from 3 separate insurers under 3 separate insurance policies. Waiver of subrogation provision is not limited to negligence actions, but can apply with equal force to contract claims. As parties agreed that loss and damage from fire would be borne solely by casino's property insurance, casino thus waived all claims against contractors arising from such loss. Plaintiffs failed to present facts showing that "time is of the essence" provision was material to contract such that Defendants' failure to complete project within contemplated time frame would negate waiver of subrogation provision. Contract provisions requiring contractor to obtain liability insurance and to indemnify casino for claims arising out of performance of work did not conflict with waiver of subrogation clause, so as to render those provisions an exception to the waiver. (LAVIN and COBBS, concurring.)