Construction Law

Construction Law

Public Act 98-764 (corrected)

Topic: 
Mechanics Lien Act
(Mulroe, D-Chicago; Kelly Burke, D-Oak Lawn) provides that language barring certain agreements does not prohibit an agreement to subordinate a mechanics lien to a mortgage lien that secures a construction loan if that agreement is made after more than 50% of the loan has been disbursed to fund improvements to the property. Allows contractual provisions to be binding between the owner and contractor or a contractor and subcontractor that no lien or claim may be filed or maintained or that a contractor’s lien must be subordinated to the interests of any other party as long as it is not otherwise prohibited by this Act. Deletes language providing that the only admissible evidence of specified conditions of a contract as against a subcontractor or material supplier shall be proof of actual notice thereof to him or her before his or her contract is entered into. Deletes language providing that certain subordination provisions of contracts is not binding on the subcontractor unless set forth in its entirety in writing in the contract between the contractor and subcontractor or material supplier. Effective July 16, 2014.

Public Act 98-779

Topic: 
Counties Code and Code of Conduct
(Morrison, D-Lake Forest; Yingling, D-Hainesville) allows a county board for counties more than 300,000 but less than two million population to adopt a code of conduct regarding the fiscal responsibility and procurement authority, as required by State law, local ordinance, or county board policy It may also include additional provisions for the accountability, transparency, and ethical conduct of county appointees. Allows appointees appointed by a county board chairman or county executive, with or without the consent of the county board, to be removed from office for violating the code of conduct by the county board chairman or county executive with concurrence by a 2/3 majority vote of the county board. It requires that reasonable notice of the violation and a hearing before the county board or its designee be provided to the appointee before the vote. Makes similar provisions for appointees appointed by the county board on the process of removal for violation of the code of conduct. But the Act exempts the removal of county superintendent of highways and county engineer from these provisions. Effective January 1, 2015.

15th Place Condominium Association v. South Campus Development Team, LLC

Illinois Appellate Court
Civil Court
Statute of Limitations
Citation
Case Number: 
2014 IL App (1st) 122292
Decision Date: 
Thursday, June 26, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div.
Holding: 
Affirmed in part and reversed in part; remanded.
Justice: 
HOWSE
Development company's express indemnity claim is governed by 10-year statute of limitations applicable to written contracts, as nature of claim is for failure to indemnify rather than any act or omission relating to construction activity. Sophisticated parties entering into contract for more than $34 million in construction work clearly intended to create accrual date for all statutes of limitations to limit liability and eliminate effect of discovery rule. Contract provisions were bargained for and thus enforceable. (McBRIDE and PALMER, concurring.)

House Bill 5322

Topic: 
Condominiums and common-interest communities
(Burke, D-Evergreen Park; Raoul, D-Chicago) amends the two acts that govern condos and common-interest communities so that communication may include “electronic transmission” for differing purposes under the two Acts. It creates procedures to do this that also require consent of the unit owner. It also prohibits secret ballots in elections for common-interest communities. Sent to the Governor.

House Bill 8

Topic: 
Employment and pregnancy
(Flowers, D-Chicago; Hutchinson, D-Chicago Heights) amends the Illinois Human Rights Act to prohibit unlawful discrimination by an employer for pregnancy and require reasonable accommodation to a job applicant or employee for issues related to pregnancy or childbirth. Passed both chambers.

Public Act 98-633

Topic: 
Workers' Compensation Act
(Raoul, D-Chicago; Bradley, D-Marion) provides that there is no right to recover damages for injury or death, other than the compensation provided under the Act, from a service organization that is wholly owned by the employer or the employer’s insurer or broker and that provides safety service, advice, or recommendations. Current law immunizes from common law liability if the service organization is retained by the employer or the employer’s insurer or broker to provide safety service, advice, or recommendations. Effective June 5, 2014.

Senate Bill 3286

Topic: 
Service of process
(Jacobs, D-Moline; Verschoore, D-Rock Island) amends the Code of Civil Procedure to require an employee of a “gated residential community” to grant entry into the community to an authorized process server who is attempting to serve process on a defendant or witness who resides within or is known to be within the community. This access would include common areas and common elements. The term “gated residential community” includes condominium associations, housing cooperatives, or private communities. Passed both chambers.

House Bill 4783

Topic: 
Condominium Property Act
(E. Chris Welch, D-Westchester; Steans, D-Chicago) makes the following declarations unenforceable as against public policy if the declarations affect the common elements or more than one unit and require any of the following before the board can take legal action on behalf of the association: (1) consent of a percentage of unit owners, (2) arbitration, (3) mediation before an action may be filed in court, or (4) a restriction or delay in the board’s ability to bring an action affecting the common elements or more than one unit. An otherwise unenforceable provision may be enforced after the election of the first-unit owner board of managers if it is approved by a unit-owner percentage vote of not less than 75% of the total in the aggregate of the undivided ownership of the common elements.