Construction Law

Construction Law

Senate Bill 3202

Topic: 
Community association fees
(Maloney, D-Chicago; Thapedi, D-Chicago) amends the Community Association Manager Licensing and Disciplinary Act. It requires all community associations pay to the Department of Financial and Professional Regulation an annual fee of $50 plus an additional $1 per unit not to exceed an annual fee of $1,000 if they (1) have 10 or more units, (2) retain an individual to provide services as a community association manager for compensation, (3) are not master associations, or (4) are registered in the State as a not-for-profit corporation. Passed both chambers; effective immediately if the Governor signs it.
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1324 W. Pratt Condominium Association v. Platt Construction Group

1324 W. Pratt Condominium Association v. Platt Construction Group
Illinois Appellate Court
Civil Court
Breach of Warranty
Citation
Case Number: 
2012 IL App (1st) 111474
Decision Date: 
Thursday, June 21, 2012
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div.
Holding: 
Reversed.
Justice: 
FITZGERALD SMITH
Condominium association sued for damages from faulty construction of residential building under breach of implied warranty of habitability. Any disclaimer of implied warranty of habitability is governed by contract law. Disclaimer does not protect general contractor-builder or masonry company. Condominium association cannot proceed against masonry subcontractor while it still has recourse against solvent general contractor-builder. (LAVIN and STERBA, concurring.)

House Bill 4687

Topic: 
Open Meetings Act
(Pihos, R-Glen Ellyn; Dillard, R-Westmont) makes two changes to the Open Meetings Act. (1) An agenda must set forth the general subject matter of any resolution or ordinance that will be the subject of final action at a meeting. (2) The public body must ensure that at least one copy of any notice and agenda for the meeting is continuously available for public review during the entire 48-hour period before the meeting. Posting on its website satisfies this requirement, but if a notice or agenda is not continuously available for the full 48-hour period because of events outside of the control of the public body, then that lack of availability does not invalidate any meeting or action taken at a meeting. Passed both chambers.
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House Bill 5190

Topic: 
False UCC filings.
(Zalewski, D-Chicago; Harmon, D-Oak Park) amends the Secured Transactions Article of the Uniform Commercial Code. It provides that a person may not cause to be filed a false record the person knows or reasonably should know is (1) not authorized or permitted under specified provisions; (2) not related to a valid existing or potential commercial or financial transaction, an existing agricultural or other lien, or a judgment of a court of competent jurisdiction; and (3) filed with the intent to harass or defraud the person identified as debtor in the record or any other person. Creates criminal and civil penalties and administrative relief from the Secretary of State. Exempts records filed by a regulated financial institution or its representative. Passed both chambers.
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Senate Bill 3764

Topic: 
Article 9 of the UCC
(Harmon, D-Oak Park; Zalewski, D-Chicago) conforms Article 9 of the Uniform Commercial Code to the 2010 amendments as proposed by the Uniform Law Commission. Passed both chambers. (See the June Illinois Bar Journal article by Michelle Nijm that discusses this bill in more detail.)
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House Bill 4665

Topic: 
Residential construction and radon
(McAsey, D-Lockport; Collins, D-Chicago) creates the Radon Resistant Construction Act. It requires all new residential construction include passive radon resistant construction. “New residential construction” is any original construction of a single-family home or a dwelling containing two or fewer apartments, condominiums, or townhouse. “Passive radon resistant construction” includes an installed pipe that relies solely on the convective flow of air upward for soil-gas depressurization and may consist of multiple pipes routed through conditioned space from below the foundation to above the roof. Passed both chambers.
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Senate Bill 3792

Topic: 
Mechanics Lien Act
(Althoff, R-Crystal Lake; Tyron, R-Crystal Lake) requires work to be done or materials furnished within three years for residential property and five years for any other kind of property. Senate Bill 3792 sunsets on January 1, 2016, and the limitation then reverts to three years for any kind of property at that time. Passed both chambers.
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BMD Contractors, Inc. v. Fidelity and Deposit Co. of Maryland

Federal 7th Circuit Court
BMD Contractors, Inc. v. Fidelity and Deposit Co. of Maryland
Civil Court
Contracts
Citation
Case Number: 
No. 11-1345
Decision Date: 
May 11, 2012
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed
Dist. Ct. did not err in granting defendant-surety's motion for summary judgment in action by plaintiff-subcontractor seeking payment from defendant, where contractor to which plaintiff had contracted to perform services on building project failed to pay plaintiff for services rendered by plaintiff on said project. Terms of plaintiff's subcontract with contractor included "pay-if-paid" clause, which required contractor to pay plaintiff only if it had received payment on said building project under its own contract with third-party, and record showed that contractor had not received payment for building project. Ct. rejected plaintiff's argument that "pay-if-paid" clause violated Indiana public policy, or that plaintiff could collect what it was owed from defendant since bond itself did not specifically incorporate "pay-if-paid" language.

Stark Excavating v. Carter Construction Services

Stark Excavating v. Carter Construction Services
Illinois Appellate Court
Civil Court
Construction Contracts
Citation
Case Number: 
2012 IL App (4th) 110357
Decision Date: 
Wednesday, March 28, 2012
District: 
4th Dist.
Division/County: 
Champaign Co.
Holding: 
Reversed and remanded.
Justice: 
COOK
Subcontractor filed suit for breach of contract against general contractor for nonpayment of extra work for winter protection of worksite and for authorized extras and retainage, and for recovery of winter protection costs. Questions of fact exist as to whether contractor implicitly ordered subcontractor to do winter protection work if necessary to do job in workmanlike manner. Question of fact exists as to whether winter protection work was necessary, although it was outside scope of contract. Quasi-contractual recovery for winter protection work is possible, as payment for it was expressly excluded from contract. (POPE, concurring; TURNER, concurring in part and dissenting in part.)