Construction Law

Construction Law

Senate Bill 2829

Topic: 
Local governments and administrative review
(Link, D-Lake Bluff) amends the Code of Civil Procedure to provide that in any any successful appeal under the Administrative Review Law of an adverse decision by a unit of local government, the court shall award the plaintiff all reasonable costs, including court costs and attorney's fees, associated with the appeal. If the court finds the decision by the unit of local government to be clearly erroneous or that the plaintiff's rights to due process were abridged, the court may award the plaintiff all reasonable costs associated with the entire case dating back to the inception of the administrative proceeding. Scheduled for a hearing in Senate Judiciary Committee on Tuesday.

House Billl 4428

Topic: 
Attorney statute of repose
(Sandack, R-Lombard) amends the Code of Civil Procedure statute of repose for attorneys by tolling the six-year statute of repose if the client is still represented by the attorney or the attorney knowingly conceals the act or omission. The period of limitations will not begin to run until the person is no longer represented by the attorney or until the client should have known of the injury. Introduced and referred to House Rules Committee.

House Bill 3775

Topic: 
Title insurance and trust agreements
House Bill 3775 (Tyron, R-Crystal Lake) amends the Residential Mortgage License Act of 1987 to do two things. (1) Prohibits a mortgage lender acting on behalf of a borrower from requiring the seller of real property to disclose the terms of a private trust agreement regarding the real property if the seller has obtained title insurance for the transaction. (2) Prohibits a mortgage lender acting on behalf of a borrower from withholding approval or threatening to do so of the borrower’s residential mortgage loan because the seller has not disclosed the terms of a private trust agreement regarding the real property. Introduced and referred to House Rules Committee.

Public Act 98-506

Topic: 
Driving and cell phones
(D'Amico, D-Chicago; Mulroe, D-Chicago) prohibits using a hand-held cell phone or personal digital assistant while driving. Exempts the use of a hands-free or voice-operated mode, which may include the use of a headset. It also exempts using an electronic communication device that is activated by pressing a single button to initiate or terminate a voice communication. Second or subsequent convictions are moving violations. The fine is a maximum of $75 for the first offense, $100 for the second offense, $125 for the third offense, and $150 for the fourth or subsequent offense. Effective Jan. 1, 2014.

House Bill 2327

Topic: 
Filing fee increase
(Riley, D-Hazel Crest; Hutchinson, D-Chicago Heights) raises the maximum court automation fee from $15 to $25 for all parties in civil actions and convicted defendants in criminal actions. It keeps the ceiling at $15 for defendants who receive supervision in a criminal or conservation prosecution. It must receive county board approval, but seems to be automatic. It is on the Governor's desk awaiting action.

Senate Bill 1044

Topic: 
Collection procedures
(Silverstein, D-Chicago; Lang, D-Skokie) makes four changes to collection practice. (1) It allows enforcements (wage deduction orders, pay orders and turnover orders) to continue beyond seven years without revival. If a judgment becomes dormant during the pendency of an enforcement proceeding against wages under Part 14 of Article 12 or under Article XII, the enforcement may continue to conclusion without revival of the underlying judgment so long as the enforcement is done under court supervision and includes a wage deduction order or turnover order and is against an employer, garnishee, or other third-party respondent. (2) It allows service of garnishments by certified mail. (3) It makes the recording of foreign judgments as liens on real estate. (4) It clarifies that a court in a citation proceeding may enter any order that could be entered in a non-wage garnishment and that this change is declaratory of existing law. It was signed into law yesterday and effective January 1, 2014.

Public Act 98-548

Topic: 
Tort cases and settlement problems
(Raoul, D-Chicago; Sims, D-Chicago) amends the Code of Civil Procedure to create an enforcement mechanism for cases in which the parties agree to settle, but the defendant won't comply with the agreement. It is limited to cases seeking money damages involving personal injury, wrongful death, or tort action. It requires a settling defendant pay all sums due the plaintiff within 30 days of tender of all applicable documents required under this new section. It requires a "settling defendant" to tender a release to the plaintiff within 14 days of written confirmation of the settlement. If the law requires court approval of a settlement, the plaintiff must tender to the defendant a copy of the court order approving the settlement. If there is a known third-party right of recovery or subrogation interest, the plaintiff may protect the third party's right of recovery or subrogation interest by tendering to the defendant (1) A signed release of the attorney's lien; and (2) A letter from the plaintiff's attorney agreeing to hold the full amount of the claimed lien in the plaintiff's attorney's client-fund account pending final resolution of lien amount; or (a) A signed release of the healthcare-provider lien or documentation of the agreement between the plaintiff and Medicare or private health insurance company as to the amount of the settlement that will be accepted in satisfaction of the right of recovery; or (b) An offer that the defendant hold the full amount of the claimed right to recovery pending a final resolution of the right to recovery; or (c) Documentation of any other resolution of the liens as agreed to by the parties. If the court finds, after a hearing, that payment has not been made within 30 days of tender of the necessary documents, judgment must be entered against that defendant for the amount in the executed release, costs incurred in obtaining the judgment, and 9 percent interest from the date of the plaintiff's tender. The Act exempts units of local government, the State of Illinois, and state employees. Effective January 1, 2014.

Public Act 98-99

Topic: 
Fraudulent real estate documents
(Lang, D-Chicago; Silverstein, D-Chicago) allows a recorder of deeds to establish and use a “Fraud Referral and Review Process” for deeds and instruments that the recorder reasonably believes are fraudulent, unlawfully altered, or intended to unlawfully cloud or transfer the title of any real property. If the recorder reasonably believes the document is fraudulent, the recorder may refer the instrument to a county administrative law judge for review. If the ALJ finds by clear and convincing evidence that the document is fraudulent, the ALJ must issue a judgment to that effect with a notation that the fraudulent document may not affect the chain of title of the property in any way. Effective July 19, 2013.

Gerdau Ameristeel US, Inc. v. Ahal Contracting Co., Inc.

Illinois Appellate Court
Civil Court
Mechanic's Liens
Citation
Case Number: 
2013 IL App (4th) 120547
Decision Date: 
Thursday, May 23, 2013
District: 
4th Dist.
Division/County: 
Champaign Co.
Holding: 
Reversed and remanded with directions.
Justice: 
TURNER
Material supplier filed action for foreclosure of its mechanics lien against several companies, including two companies which later sought to enforce their secondary subcontractors' liens under Mechanics Lien Act. Court improperly granted summary judgment in favor of those two companies without limiting their recovery to only their pro rata shares of the amount of unpaid contract funds remaining at time they served their notices of lien. (KNECHT and HARRIS, concurring.)

Senate Bill 56

Topic: 
Mortgage Foreclosure Article
(Collins, D-Chicago; Cassidy, D-Chicago) does three things. (1) Defines a “bona fide tenant” substantially consistent with the 2009 federal Protecting Tenants at Foreclosure Act. (2) Requires a petitioner to wait 90 days (unless the lease term is longer than 90 days) before a forcible entry and detainer action may be used to terminate the possessory rights of a bona fide tenant in residential real estate. Orders of possession issued in the foreclosure proceeding will continue to be entered against the mortgagor. (3) Addresses the deficiency issue in the 2010 McGahan case as to what procedure the mortgagee must follow if a mortgagor dies. If the survivor holds a 100% interest in the property because the survivor is the deceased mortgagor’s surviving joint tenant or surviving tenant by the entirety, a special representative for the deceased mortgagor need not be appointed. Passed both chambers.