Construction Law

Construction Law

The Henderson Square Condominium Association v. LAB Townhomes, LLC

Illinois Supreme Court
Civil Court
Condominiums
Citation
Case Number: 
2015 IL 118139
Decision Date: 
Wednesday, November 4, 2015
District: 
1st Dist.
Division/County: 
Cook Co.
Holding: 
Appellate court affirmed; remanded.
Justice: 
THOMAS

(Modified upon denial of rehearing 1/28/16.) Plaintiff condominium association and its elected board of managers filed sued various development companies for construction project, alleging breach of implied warranty of habitability, fraud, negligence, breach of Chicago Municipal Code's prohibition against misrepresenting material facts in marketing and selling real estate, and breach of fiduciary duty. Allegations of complaint were sufficient to raise question of fact as to time when Plaintiffs knew or reasonably should have known that their injury was wrongfully caused. As to breach of fiduciary duty count, questions presented are questions of fact, and allegations are sufficient to state a cause of action. Complaint adequately alleged fiduciary duty in connection with fraudulent concealment doctrine, and question of fact remains as to whether Defendants' failure to speak about construction deficiencies or to adequately fund reserve fund, along with other alleged misrepresentations, was fraudulent concealment to invoke exceptions to statute of limitations and of repose.(GARMAN, KILBRIDE, and THEIS, concurring; BURKE, FREEMAN, and KARMEIER, dissenting.)

House Bill 4491

Topic: 
Forcible entry and detainers and condos

(Drury, D-Highwood) amends this Article for actions for possession for unpaid condominium expenses. A unit owner may raise as defenses: (1) a material breach of any duty set forth in the Condominium Property Act, governing condominium instruments, rules and regulations, or any applicable statute or ordinance applicable to the unit owner’s possession of the condominium unit; or (2) an improper motive for bringing the action. It also bars an association from recovering any attorney’s fees and costs against a unit owner if the association is found by a court to have breached an obligation under this Article or the Condominium Property Act; or in the case of any member of the association’s board of managers, he or she is found to have breached a fiduciary duty to the unit owner or the association. Introduced and referred to House Rules Committee.

House Bill 4489

Topic: 
Condominium Property Act

(Drury, D-Highwood) makes a number of changes to this Act, which are as follows. (1) Contains a statement of public policy that a unit owner has the right to fairness in litigation or other legal action regardless whether the unit owner instigates it or the association does. (2) Allows a unit owner to bring a legal action against the association or its board of managers to enforce individual or common-interest community rights without being required to sue other homeowners or otherwise name them as defendants. Any cost to provide a notice to unit owners is to be paid by the association and may not be assessed against the unit owner bringing the action. (3) Voids as a matter of public policy any provision of any condominium instrument or any rule or regulation seeking to limit a unit owner’s right to commence litigation against an association or its board of managers or to limit the liability of an association or its board of managers for a breach of duty. (4) Provides that a unit owner’s compliance with an association’s demand does not waive the unit owner’s right or ability to challenge the demand in a legal action commenced later. (5) Requires a unit owner to be awarded reasonable attorney’s fees to enforce this Act (a) to the extent the unit owner prevails as a plaintiff; or (b) the unit owner as defendant prevails on any affirmative defense or counterclaim for a breach by the association or its board of managers for an obligation under this Act, condominium instruments, rules and regulations, or another applicable statute or ordinance. (6) Requires the association be awarded its reasonable attorney’s fees to enforce this Act but that the court may reduce the award or in part or entirely if: (a) the court finds that the legal action benefited the association by clarifying its duties; or (b) based on other equitable considerations. (7) Bars the association from recovering any attorney’s fees and costs in a claim brought under the Forcible Entry and Detainer Article of the Code of Civil Procedure if the unit owner prevails based on a breach of duty by the association or by any member of its board of managers. (8) Provides that in litigation, the association is required to represent the best interests of all unit owners and the association without regard to the wishes of the board of managers. (9) Provides that the association may not be represented in litigation by counsel who also represents the association’s board of managers either individually or collectively. Introduced and referred to House Rules Committee. 

Senate Bill 2153

Topic: 
Civil justice changes

(Radogno, R-Lemont) amends the Code of Civil Procedure to make the following changes. (1) Deletes a provision authorizing an action to be commenced in any county when all defendants are nonresidents of this State. (2) Under current law, corporations and partnerships are considered to be residents of any county in which they are doing business. Senate Bill 2153 limits this provision only if on due inquiry no office can be found in Illinois. (3) Deletes residency for a partnership on the basis that any partner resides in that county. (4) Deletes residency of any insurance company for any county in which a plaintiff or one of the plaintiffs resides. (5) Provides that in actions in which no party is a resident of this State and over which another forum has jurisdiction, the court shall, upon motion, dismiss the action unless the cause of action primarily arise in Illinois or the interests of justice require that the action proceed here. (6) Provides that joint and several liability attaches if a defendant is found to be 50%, rather than 25%, at fault. (7) Limits amounts recovered for medical care, treatment, or services and caretaking expenses to the amounts actually paid for those expenses regardless of the amounts initially billed. Referred to Senate Assignments Committee. 

House Bill 4426

Topic: 
Changes to personal injury and property damage cases

(Sandack, R-Downers Grove) deletes language requiring the court to instruct the jury in writing that the defendant must be found not liable if the jury finds that the contributory fault of the plaintiff is more than 50% of the proximate cause of the injury or damage for which recovery is sought. It replaces it with language providing that the court may not instruct the jury of the consequence of any findings of fault of any plaintiff or defendant under Sections 2-1116 and 2-1117 of the Code of Civil Procedure.  It deletes the current language of Section 2-1117 on joint liability and replaces it with language providing that any defendant whose fault is less than 25% of the proximate cause of the injury or damage for which recovery is sought by the plaintiff is severally liable for non-medical damages; and any defendant whose fault is 25% or greater of the proximate cause of the injury or damage for which recovery is sought by the plaintiff is jointly and severally liable for non-medical damages. Just introduced. 

House Bill 4400

Topic: 
Perjury

(Drury, D-Highwood) makes it perjury if a person knowingly under oath makes contradictory statements to the degree that one of them is necessarily false in the same or in different proceedings in which an oath or affirmation is required if: (1) each statement was material to the issue or point in question; and (2) each statement was made within the period of the statute of limitations for the offense charged. Makes it a defense if the defendant at the time he or she made each declaration believed the declaration to be true. Just introduced.

Great American Insurance Co. v. Heneghan Wrecking & Excavating Co.

Illinois Appellate Court
Civil Court
Municipal Law
Citation
Case Number: 
2015 IL App (1st) 133376
Decision Date: 
Friday, December 11, 2015
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Affirmed.
Justice: 
LAMPKIN

Five-alarm fire destroyed 100-year-old, 6-story building which had fallen into disrepair. Fire was caused by unlicensed contractor who Estate had hired to complete work in basement, and he never obtained permit for work. Sparks from torches being used then started fire. Public policy did not support imposition of strict liability upon wrecking company and construction company for damages resulting from demolition of building.  Section 1-4-7 of Municipal Code does not impose strict liability on a municipality; negligence is required for statute to apply. Court properly denied Estate's motion for judgment notwithstanding the jury's verdict or, in the alternative, its motion for a new trial. Jury heard conflicting evidence that Estate was negligent in hiring unqualified person to make repairs to building, and evidence that wrecking company was negligent in demolishing building which caused damage to adjacent building and led to its demolition.  General verdict creates presumption that jury found in favor of Defendant on each defense, where no special interrogatories were requested by the moving party. Evidence was sufficient for jury to conclude that Estate was more than 50% negligent, thus barring recovery by Estate. (REYES, concurring; GORDON, specially concurring.)

Christopher B. Burke Engineering, Ltd v. Heritage Bank of Central Illinois

Illinois Supreme Court
Civil Court
Mechanics Lien Act
Citation
Case Number: 
2015 IL 118955
Decision Date: 
Thursday, November 19, 2015
District: 
3d Dist.
Division/County: 
Peoria Co.
Holding: 
Appellate court reversed; circuit court reversed; remanded.
Justice: 
GARMAN

Mechanics Lien Act does not restrict the availability of liens for architects, engineers, land surveyors, or property managers to services performed only for the raising, lowering, or removal of a house, and can include services done for the purpose of improving property. Resolution of issue as to whether owner of property at time contract for services was entered into knowingly permitted developers to enter into contracts regarding the property involves genuine issues of material fact, and thus summary judgment is precluded. (FREEMAN, THOMAS, KILBRIDE, KARMEIER, BURKE, and THEIS, concurring.)

Cook County ordinances 15-5775 and 15-5780

Topic: 
Filing fee increase
The Cook County Board has on its agenda two ordinances to increase litigants and defendants' filing fees from $15 to $25 for the court automation fee (15-5775) and from $15 to $25 for the document storage fee (15-5780). These fees are paid by civil litigants and defendants in felony, misdemeanor, municipal ordinance, conservation, and traffic cases (excluding minor traffic cases satisfied without a court appearance. These two ordinances will probably be voted the week of November 16th to take effect December 1, 2015.

Senate Bill 1447

Topic: 
Administrative Review Law
(Kotowski, D-Park Ridge; Moylan, D-Des Plaines) amends the Administrative Review Law of the Code of the Civil Procedure to do two things: (1) Excludes as “parties of record” individuals who are not acting in an official capacity and whose participation in proceedings before an administrative agency is limited to attendance or testimony at a public hearing or submission of written statements to the agency. (2) Requires the plaintiff to send notice of filing of the action by certified mail to those individuals even though they are not party of record. The notice must be mailed within two days of the filing of the action for the decision from which the action to review is taken. The notice must inform the individual of his or her right to intervene as a defendant in the action by applying to the court within 30 days of the mailing of the notice. On third reading in the House and scheduled for action by the House at its next scheduled session in November.