Construction Law

Construction Law

National City Mortgage v. Bergman

Illinois Appellate Court
Civil Court
Mechanics Lien Act
Citation
Case Number: 
No. 2-09-0934
Decision Date: 
Wednesday, October 20, 2010
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Reversed and remanded with directions.
Justice: 
BURKE
Section 7 of the Illinois Mechanics Lien Act does not require the inclusion of a statement of the contract completion date on a lien claim in order to be enforceable. Mechanics Lien Act must be strictly construed, as mechanics' liens were not recognized at common law or in equity but exist only by virtue of statutes. (HUTCHINSON and JORGENSEN, concurring.)

Water Tower Realty Company v. Fordham 25 E. Superior

Illinois Appellate Court
Civil Court
Indemnification
Limitations
Citation
Case Number: 
No. 1-09-2943
Decision Date: 
Wednesday, September 29, 2010
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Affirmed in part, reversed in part; remanded.
Justice: 
NEVILLE
Plaintiff realty company sued Defendant company five years after Defendant completed construction of 50-story high rise building on its property, which was across the street from Plaintiff's building, for breach of agreement to indemnify Plaintiff for losses suffered due to the construction. Plaintiff claimed that Defendant used its property, during construction, such that it was impossible for Plaintiff to lease commercial space in its building. Indemnity agreement is broad enough to encompass both first-party and third-party claims. Ten-year limitations period for actions on written contracts governs, rather than four-year period for construction suits, as Defendant's potential liability emanates from its obligation under the written indemnification agreement, and is not related to Defendant's capacity as supervisor or manager of the construction. (QUINN and STEELE, concurring.)

Dorrnbos Heating and Air Conditioning, Inc. v. Schlenker

Illinois Appellate Court
Civil Court
Mechanics Lien Act
Citation
Case Number: 
No. 1-09-0076
Decision Date: 
Monday, July 12, 2010
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Affirmed.
Justice: 
PATTI
Court properly entered judgment in favor of HVAC contractor for medical office facility and surgery center on its mechanic's lien claim filed against physician and his wife, who was trustee of a trust which owned the property. HVAC company's claim was not barred by Section 6 of Mechanics Lien Act, as it was seeking to enforce its lien for work for which it had not been paid, and which was begun several months after the start of its initial work on the project; the work for which lien was asserted began within 3 years of when company ceased working on project due to non-payment. Three-year period of Lien Act commences with the beginning of work for which the mechanic's lien is asserted and not with the date upon which the contract for such work was entered into. Property owners failed to prove that company breached contract, as general contractor instructed company to commence its work prior to IDPH approval of design plans, and construction problems noted later were remedied and were described as not uncommon by IDPH architect. (HALL and LAMPKIN, concurring.)

LaSalle Bank National Association v. Cypress Creek I, L.P.

Illinois Supreme Court PLAs
Civil Court
Mechanics Lien
Citation
PLA issue Date: 
May 26, 2010
Docket Number: 
No. 109954
District: 
3rd Dist.
This case presents question as to whether trial court erred in apportioning proceeds of Sheriff's sale of piece of foreclosed property that gave only percentage recovery to two holders of perfected mechanics liens while permitting mortgagee of said property to be subrogated to status of mechanics lien claimant for monies it paid in construction and development costs through funding draws from trust. Appellate Court, in reversing trial court, found that claimants with perfected mechanics liens are not required to share sale proceeds with anyone except other claimants with perfected mechanics liens, and that while instant mortgagee could be subrogated in amount of $30,702 that it paid for third-party's perfected lien, it could not be subrogated for remaining $1.5 million in construction and development costs since instant mortgagee was essentially attempting to be subrogated for materialmen, who had been paid as work progressed, but who did not have perfected liens. (Partial dissent filed.)

Hensley Construction v. Pulte Home Corporation

Illinois Appellate Court
Civil Court
Construction Contracts
Citation
Case Number: 
Nos. 2-09-1140 & 2-09-1141 cons.
Decision Date: 
Friday, March 26, 2010
District: 
2d Dist.
Division/County: 
Kane Co.
Holding: 
Reversed and remanded.
Justice: 
McLAREN
Plaintiff, an underground utility business specializing in installation of water and sewer lines, sued residential construction businesses for non-payment. Trial court ordered construction businesses to pay money into escrow account pending final resolution of cases. Plaintiff requested only monetary relief, thus injunctive relief inappropriate as an improper prejudgment equitable attachment. Equitable attachments are prohibited in Illinois except where claimant has interest in specific funds held by debtor, which was not the case here, as funds had no connection to underlying dispute.

Hensley Construction v. Pulte Home Corporation

Illinois Appellate Court
Civil Court
Construction Contracts
Citation
Case Number: 
Nos. 2-09-1140 & 2-09-1141 cons.
Decision Date: 
Friday, March 26, 2010
District: 
2d Dist.
Division/County: 
Kane Co.
Holding: 
Reversed and remanded.
Justice: 
McLAREN
Plaintiff, an underground utility business specializing in installation of water and sewer lines, sued residential construction businesses for non-payment. Trial court ordered construction businesses to pay money into escrow account pending final resolution of cases. Plaintiff requested only monetary relief, thus injunctive relief inappropriate as an improper prejudgment equitable attachment. Equitable attachments are prohibited in Illinois except where claimant has interest in specific funds held by debtor, which was not the case here, as funds had no connection to underlying dispute.

Miller v. Herman

Federal 7th Circuit Court
Civil Court
Contracts
Citation
Case Number: 
No. 08-3093
Decision Date: 
March 25, 2010
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed and vacated in part and remanded
Dist. Ct. did not err in dismissing plaintiff's lawsuit alleging that defendants-contractor and manufacturer of windows breached certain warranties (that made reference to Magnuson-Moss) arising out of installation of windows that leaked in plaintiff's new home that was built by defendant-contractor. Plaintiff failed to state valid cause of action since instant windows were not consumer products as that term is contemplated under Federal Trade Commission Improvement Act because windows were not purchased in connection with improvement or repair of existing home.

Thompson v. Gordon

Illinois Appellate Court
Civil Court
Summary Judgment
Experts
Citation
Case Number: 
No. 2-07-0667
Decision Date: 
Thursday, November 19, 2009
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Reversed and remanded.
Justice: 
O'MALLEY
Language in contract between engineering companies and developer obligated engineering companies to employ professional standard of care in designing replacement for bridge deck. Affidavit of civil engineer is evidence that companies breached standard of care by not considering or designing improved median barrier, although median barrier was not explicitly mentioned in contract.