Construction Law

Construction Law

Public Act 97-966

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; at which time the limitation then reverts to three years for any kind of property at that time. Effective January 1, 2013.

Citadel Group Limited v. Washington Regional Medical Center

Federal 7th Circuit Court
Civil Court
Contracts
Citation
Case Number: 
No. 11-3124
Decision Date: 
August 15, 2012
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Dist. Ct. did not err in granting defendant’s motion for summary judgment in action seeking lost profits arising out of defendant’s termination of parties’ relationship arising out of plaintiff’s construction of medical office building and lease-back of building space to defendant. While parties signed preliminary agreement that called for plaintiff to take pre-construction steps while parties continued to negotiate terms of leases for said building, parties never had enforceable agreement with respect to said leases so as to support plaintiff’s breach of contract claim. Moreover, record showed that defendant intended to use plaintiff to construct medical office building only after parties had agreed to rental rates and signed operative leases. Moreover, at time defendant had terminated instant relationship, plaintiff had not begun actual construction of building so as to support plaintiff’s contention that defendant had acquiesced to plaintiff’s proposed rental rates.

Public Act 97-953

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 the roof above. Effective June 1, 2013.

Public Act 97-848

Topic: 
Post-judgment collection of debts
(Williams, D-Chicago; Haine, D-Alton) makes three changes to citations and body attachments. (1) It requires a citation to be served by personal service or abode service as provided in Supreme Court Rule 105 attaching a copy of the statutory Income and Asset Form created by this bill. (2) It prohibits a payment order from being issued against a person unless the form was served on the debtor, the debtor has an opportunity to assert exemptions, and the payments are from nonexempt sources. (3) No order of body attachment or other civil order for incarceration may be issued for a respondent on a charge of indirect civil contempt unless the respondent has first had an opportunity to appear in court to answer after personal service or abode service of notice as provided in Section 2-203. It exempts enforcement for a violation of a municipal ordinance. (See the June Illinois Bar Journal article by Adam W. Lasker that discusses this bill in more detail.) Effective July 25, 2012.

Joseph Construction v. The Board of Trustees of Governors State University

Illinois Appellate Court
Civil Court
Court of Claims
Citation
Case Number: 
2012 IL App (3d) 110379
Decision Date: 
Friday, July 20, 2012
District: 
3d Dist.
Division/County: 
Will Co.
Holding: 
Affirmed.
Justice: 
SCHMIDT
Construction company sued public university for balance due under construction contract. Court properly granted Defendants' Section 2-619 motion to dismiss, as Plaintiff must prosecute its claims in Court of Claims, which has exclusive jurisdiction over action. Public universities are "the State" for purposes of sovereign immunity and must be sued in Court of Claims. Although Plaintiff included equitable claims seeking injunctive and declaratory relief, they were actually a restatement of breach of contract claim. (LYTTON and O'BRIEN, concurring.)

Public Act 97-836

Topic: 
False UCC filings
(Zalewski, D-Chicago; Harmon, D-Oak Park) amends the Secured Transactions Article of the Uniform Commercial Code. It prohibits a person from filing or cause to be filed a false record that 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. Effective July 20, 2012.

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.

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.)