Construction Law

Construction Law

REEF-PCG, LLC v. 747 Properties, LLC

Illinois Appellate Court
Civil Court
Mechanic's Liens
Citation
Case Number: 
2020 IL App (2d) 200193
Decision Date: 
Monday, June 29, 2020
District: 
2d Dist.
Division/County: 
Du Page Co.
Holding: 
Reversed and remanded.
Justice: 
BRENNAN

(Court opinion corrected 7/30/20.) Court entered order subordinating the mechanic's liens of 3 mechanic's lienholders to $12 million in new debt, to be issued through receiver certificates, for improvements to secure a 10-year lease with GSA. Pursuant to Mechanics Lien Act, court had equitable power to issue receiver certificates and prioritize them over the mechanic's liens. Court abused its discretion where it concluded, without sufficient evidence, that making $12 million in receiver certificates a first lien, vis-a-vis the mechanic's liens, was in the lienholders' best interests or doing so was apparently necessary to preserve the property, over the objection of certain lienholders. No evidence was presented as to value of the building with the GSA as a tenant, or as to the current value of the building, and no appraisals, estimates, or expert testimony was entered into evidence. (BIRKETT and ZENOFF, concurring.)

Schaffer v. Greenview Home Builders & Cabinetry Designers, Inc.

Illinois Appellate Court
Civil Court
Construction Contracts
Citation
Case Number: 
2020 IL App (2d) 190230
Decision Date: 
Wednesday, July 15, 2020
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Affirmed.
Justice: 
BRIDGES

Plaintiff contracted with Defendant to build a new home, and alleges that Defendant did not complete the project and that there were deficiencies in the portions it did complete. Court entered summary judgment for bank and for inspector/appraiser. Plaintiff filed several postjudgment motions more than 30 days after entry of judgments. Court properly found that it lacked jurisdiction to rule on any pending postjudgment motions. Order had disposed of all remaining claims as to all remaining parties in the suit, and was thus a final order and immediately appealable. Plaintiff's unexercised right to reinstate or refile her claim against construction company president, and his bankruptcy filing, are not relevant to whether order was final, as Plaintiff had previously removed him from litigation.  As Defendants did not act inconsistently with the order or seek to set it aside, court was not revested with jurisdiction to hear any pending postjudgment motions. (JORGENSEN and HUDSON, concurring.)

A & C Construction & Installation, Co. WLL v. Zurich American Ins. Co.

Federal 7th Circuit Court
Civil Court
Miller Act
Citation
Case Number: 
No. 19-3325
Decision Date: 
June 30, 2020
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting defendants‘ (sureties for prime contractor) motion for summary judgment in Miller Act lawsuit filed by plaintiff-subcontractor, who performed work on federal govt. construction project and claimed that prime contractor failed to pay it $8.6 million for work it performed on said project. While plaintiff asserted that it could seek payment for said work from payment bond issued by defendants on behalf of prime contractor, Miller Act required plaintiff to provide notice of non-payment within 90 days after last date of plaintiff’s work on project. Record, though, showed that plaintiff had given its notice prior to last claimed date of work. Accordingly, plaintiff could not sue on instant payment bond because its notice was not “within 90 days” after its last date of work.

Excecutive Order 214

Topic: 
Executive Order for notaries and witnesses

was issued by Governor Pritzker yesterday. It orders the following for the duration of the Gubernatorial Disaster Proclamation for COVIR-19:

(1) the requirement that a person must "appear before" a notary public commissioned under the Illinois Notary Public Act is satisfied if: the notary public performs a remote notarization via two-way audio-video communication technology; the notary public is physically within the State while performing the notarial act; and the transaction follows the guidance posted by the Illinois Secretary of State on its website;

(2) any act of witnessing required by Illinois law may be completed remotely by via two-way audio-video communication technology if specified requirements are met;

(3) specified provisions of the Electronic Commerce Security Act that prohibit electronic signatures on certain documents remain in full effect;

(4) notwithstanding any law or rule of the State to the contrary, absent an express prohibition in a document against signing in counterparts, all legal documents, including deeds, last wills and testaments, trusts, durable powers of attorney for property, and powers of attorney for health care, may be signed in counterparts by the witnesses and the signatory; a notary public must be presented with a fax or electronic copy of the document signature pages showing the witness signatures on the same date the document is signed by the signatory if the notary public is being asked to certify to the appearance of the witnesses to a document.

House Bill 4006

Topic: 
Subpoena process

(McDermed, R-Mokena) creates a process similar to the Mental Health and Developmental Disability Act that a party or attorney and the court must follow before serving or issuing a subpoena for records maintained by that Illinois Tollway Authority that may contain personally identifying information of tollway users.

It prohibits a party or attorney from serving a subpoena unless it is accompanied by a written court order or written consent of the tollway user whose records are being sought. It prohibits the court from issuing such an order unless the tollway user has written notice of the request for subpoena and an opportunity to be heard.

Any subpoena must contain the language that “The Authority shall not comply a subpoena for personally identifiable information unless the subpoena is accompanied by a written order that authorizes the issuance of the subpoena and the disclosure of records or communications or by the written consent of the person whose records are being sought.” 

House Bill 4006 has been assigned to House Judiciary Committee. 

Senate Bill 3417

Topic: 
Electronic conveyances

(Koehler, D-Peoria) amends the Conveyances Act to provide that if the Act requires information to be in writing or delivered in writing, or provides for consequences if it is not, an electronic record or electronic delivery satisfies that requirement. If the Act requires a deed, instrument, record, or other document or information to be executed, signed, or subscribed to in writing, an electronic signature or digital signature satisfies that requirement. Assigned to the Committee on Assignments.

Senate Bill 3474

Topic: 
Ejectment

(Barickman, R-Bloomington) amends the Ejectment Article of the Code of Civil Procedure. It provides that a plaintiff is entitled to recover either the profits received by the defendant or lost by the plaintiff. The jury of an ejectment action may assess damages in the amount of mesne profits lost by the plaintiff (in addition to those received by the defendant) since the defendant entered into possession of the premises. Assigned to Senate Judiciary Committee. 

Public Act 101-191

Topic: 
Civil post-judgment proceedings

(Mulroe, D-Chicago; Martwick, D-Chicago) makes the following changes to postjudgment proceedings: 1) Provides that a judgment creditor is entitled to prosecute citations to discover assets (instead of supplementary proceedings) for the purposes of examining the judgment debtor or any other person; 2) Deletes language providing that it is not a prerequisite to the commencement of a supplementary proceeding that a certified copy of the judgment has been returned wholly or partly unsatisfied; 3) Provides that summons shall be returnable not less than 21 nor more than 40 days (rather than 30 days) after the date of issuance; 4) Provides that summons shall be served with one copy (rather than four copies) of the interrogatories and that a summons shall be served in the same manner as provided by the Illinois Supreme Court Rule for additional relief on a party in default. Effective August 2, 2019. 

Public Act 101-184

Topic: 
Special interrogatory

(Thapedi, D-Chicago; Mulroe, D-Chicago) amends the special interrogatory provision in the Code of Civil Procedure to do the following: (1) Makes it discretionary with the court on whether to give a special interrogatory if requested by any party. It is now mandatory if any party requests; (2) The appellate standard to review a trial court’s decision on whether to give a special interrogatory is abuse of discretion; (3) If a special finding of fact is inconsistent with the general verdict, the court is required to direct the jury to further consider its answer and verdict. If the jury can’t render a general verdict consistent with the special finding, the court must order a new trial; (4) During closing argument, the parties are allowed to explain to the jury what may result if the general verdict is inconsistent with any special finding. Effective immediately and will apply to trials commencing on or after Jan. 1, 2020.

Foley v. Builtech Construction, Inc.

Illinois Appellate Court
Civil Court
Construction Contracts
Citation
Case Number: 
2019 IL App (1st) 180941
Decision Date: 
Tuesday, July 23, 2019
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div,
Holding: 
Reversed and remanded.
Justice: 
HYMAN

Subcontractor's employee was injured while moving rebar used for concrete installation; he sued the general contractor for negligence. Court erred in, after discovery closed, granting summary judgment for general contractor. The issue of whether general contractor retained sufficient control over the subcontractor's work to trigger liability for its employee's injury presents a question of fact. The contract between general contractor and subcontractor required subcontractor to comply with general contractor's own safety rules. A material question of fact arises as to compliance with general contractor's safety rules. (PUCINSKI, concurring; MASON, dissenting.)