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List of Forms by Chapter - Chapter 1 — Introduction to the Illinois Mechanics Lien Statute
- I. [1.1] Introduction
- II. [1.2] Mechanics Lien Statute and Common Law
- III. [1.3] Purpose of the Mechanics Lien Act
-
IV. [1.4] Types of Mechanics Liens - V. Principals of the Mechanics Lien Act
- [1.8] Mechanics Lien Act Is Part of Every Contract
- [1.9] There Must Be a Contract To Improve Real Estate
- [1.10] Contract Must Be with the Owner or One Knowingly Permitted by the Owner
- Ownership Interests
- [1.11] Joint Owners
- [1.12] Vendee
- [1.13] Tenant
- [1.14] Equitable Ownership
- [1.15] Knowingly Permitted
- [1.16] Mechanics Lien Is Cumulative and Additional Remedy
- [1.17] Relation-Back Doctrine
- VI. [1.18] Perfecting the Mechanics Lien
- VII. [1.22] Contractors’ Sworn Statements and Subcontractors’ Affidavits
- VIII. [1.23] Benefits Conveyed Under the Mechanics Lien Act
- [1.24] Security Interests and Apportionment
- [1.25] Interest Earned on Lien Claims Until Payment
- [1.26] Subcontractor Granted Remedy Against Owner Without Privity of Contract
- [1.27] Owners’ Liability Limited
- [1.28] Owners Can Accelerate Statute of Limitations To Adjudicate Lien Claims
- [1.29] Third Parties’ Liability Is Limited
- IX. [1.30] Waivers of Lien
- X. [1.33] Enhancement Doctrine
- XI. [1.34] There Must Be Strict Compliance with Technical Requirements
- [1.35] Reasons for Rule of Strict Compliance
- [1.36] Mechanics Lien Is in Derogation of Common Law
- [1.37] Extraordinary Remedy
- Steps for Technical Compliance
- [1.38] 770 ILCS 60/5 and 60/21 — 60-Day Notice
- [1.39] 770 ILCS 60/24 — 90-Day Notice
- [1.40] 770 ILCS 60/7 — Four-Month Recording
- [1.41] 770 ILCS 60/7 — Two-Year Filing
- [1.42] Third Parties and Strict Construction
- [1.43] Reasonability Factor with Application of Rule of Strict Construction
- XII. [1.44] Mechanics Lien Act Is Liberally Construed as Remedy
- XIII. [1.45] Multiple Parcels of Property
- XIV. [1.48] Bonding Over Statutes
- Chapter 2 — Requirements for the Original Contractor’s Lien on Private Projects
- I. Overview
- II. Identifying Contractors and Persons Authorized or Knowingly Permitted by Owners
- III. Identifying Lienable Work
- [2.10] Lienable Work
- [2.11] Environmental Services
- [2.12] Pre-Construction Services by Contractors
- [2.13] Lienability of “Delay Damages”
- [2.14] Drawings for an Abandoned Project
- [2.15] Materials, Fixtures, and Machinery
- [2.16] Streets
- [2.17] Equipment
- [2.18] Equipment Rental
- [2.19] Property Managers
- [2.20] “Ornamenting” Property
- [2.21] Cleaning and Moving
- [2.22] Union Wages and Union Fringe Benefits
- [2.23] Trucking Services
- [2.24] Fee, Profit, and Overhead
- [2.25] Temporary Staffing Labor — Not Lienable
- [2.26] Combining Lienable and Non-Lienable Work
- [2.27] Other Categories of Lienable and Non-Lienable Items
- [2.28] Interest on Unpaid Amounts, Costs of Collection, and Attorneys’ Fees
- IV. Contract Provisions and Lien Rights
- [2.29] No-Lien Contracts
- [2.30] Waivers of Lien
- [2.31] Three-Year/Five-Year Rule and Contract Completion
- [2.32] Failure To Satisfy All Contract Conditions
- Legality of Contract
- [2.33] Home Repair and Remodeling Act
- [2.34] Licensing Requirements
- [2.35] Permit Requirements
- [2.36] Sworn Statements — Contractor’s Affidavit
- V. The Claim for Lien — Timing and Contents
- Timing Requirements To Preserve Lien Rights
- [2.37] Four-Month/Two-Year Rules
- [2.38] “Completion” of the Work
- [2.39] Allocation and Apportionment Issues — Overstated Liens
- [2.40] Thirty-Day Rule
- [2.41] Information Needed To Prepare the Claim for Lien
- [2.42] Preparing the Claim for Lien
- [2.43] Sample Claim for Lien
- [2.44] Commentary on Sample Claim for Lien
- [2.45] Amended Lien Claims
- [2.46] Priority of the Perfected Lien Claim
- [2.47] Mortgage Lenders, Time of Recording and Contract Date, and the Enhancement Doctrine
- [2.48] Priority Among Mechanics Lien Claimants
- Chapter 3 — Subcontractor’s Claim for Lien
- I. [3.1] Nature and Enforcement: The Subcontractor’s Lien Rights
- [3.2] “Subcontractor” Defined
- [3.3] Nature of a Subcontractor’s Lien
- [3.4] Who Is an Owner
- [3.5] Contracts with One Other than the Record Title Owner
- [3.6] Contracts with One Who Is Knowingly Permitted
- [3.7] Contract Terms Restricting Lien Rights
- [3.8] Perfecting a Subcontractor’s Lien Claim
- [3.9] A Subcontractor’s Right to Relief
- II. [3.10] Four Prerequisites to Subcontractor’s Lien
- III. Preserving Subcontractor’s Lien
- 90-Day Notice
- [3.11] Serving 90-Day Notice
- [3.12] Form of 90-Day Notice
- [3.13] Parties To Be Served with 90-Day Notice
- Method of Service of 90-Day Notice
- [3.14] In General
- [3.15] Joint Ownership
- Exception to Service of 90-Day Notice
- [3.16] When the Sworn Contractor Statement Is Correct
- [3.17] When the Sworn Contractor Statement Is Incorrect
- [3.18] When No Sworn Statement Is Obtained by Owner
- 60-Day Notice
- [3.19] Serving 60-Day Notice
- [3.20] Form of 60-Day Notice
- [3.21] Notice to Persons Not Found or Not Residing in County Therein
- [3.22] Time of Service of Notice
- [3.23] Recording the Subcontractor’s Claim for Lien — Time for Filing
- IV. Subcontractor Remedies
- Chapter 4 — Sub-Subcontractor’s Lien: Requisites for and Perfection Of
- Chapter 5 — Mechanics Liens on Funds for City, County, and State Projects
- Chapter 6 — Construction Bond Claims
- I. Recovery on Bonds for State and Local Jobs
- Background
- [6.1] Purpose of the Public Construction Bond Act
- [6.2] Separate Remedy
- To Whom the Public Construction Bond Act Applies
- [6.3] State or Political Subdivision
- [6.4] Who Provides the Bond
- [6.5] Who Can Recover
- What Claims Can Be Recovered
- [6.6] Types of Recoverable Expenses
- [6.7] Bond Can Exceed Statutory Requirements
- [6.8] Amount of Recovery
- [6.9] Subcontractor Working on Multiple Jobs
- [6.10] When Subcontractor Executes Waiver of Lien
- [6.11] Instances When Surety Is Released from Liability
- Procedural Considerations in Bringing Suit on the Bond
- [6.12] Notice Requirements
- [6.13] When Suit May Be Brought
- [6.14] Where Suit Can Be Brought
- [6.15] The Complaint and Copy of the Bond
- [6.16] Sample Public Construction Bond Act Notice
- II. [6.17] Recovery on Bonds for Private Jobs
- III. Recovery on Bonds for Federal Jobs
- [6.20] The Statute
- [6.21] Obtaining a Copy of the Bond
- [6.22] Accrual of Action on the Bond
- [6.23] Procedural Steps for Recovery on the Bond
- [6.24] Who May Recover
- What Claims Can Be Recovered
- [6.25] Claims for Materials Intended To Be Used
- [6.26] Subcontractors Working on Multiple Jobs
- [6.27] Rentals, Repairs, and Replacement Parts
- [6.28] Interest and Attorneys’ Fees
- Forms
- [6.29] Affidavit To Support Request for Certified Copy of Miller Act Bond
- [6.30] Transmittal Letter To Obtain Certified Copy of Miller Act Bond
- [6.31] Sample Miller Act Notice
- Chapter 7 — Mechanics Liens in Bankruptcy
- I. [7.1] Introduction
- II. Brief Overview of Bankruptcy
- III. [7.5] The Automatic Stay
- [7.6] Recording the Mechanics Lien — An Exception to the Automatic Stay
- [7.7] Perfecting the Mechanics Lien
- [7.8] Notice Requirements To Perfect Liens Against Owner-Occupied, Single-Family Residence
- [7.9] Tolling and Necessary Party
- [7.10] 770 ILCS 60/34 Demand and the Automatic Stay
- [7.11] Modification of the Automatic Stay
- [7.12] To Modify or Annul?
- [7.13] Procedure for Filing the Motion
- [7.14] Required Statement To Accompany All Motions for Relief from Stay
- Standards for Granting the Motion
- [7.15] Necessary Party
- [7.16] Owner
- [7.17] Other Options
- IV. [7.18] Sale of Property Under 11 U.S.C. §363
- [7.19] Is It Appropriate for the Trustee To Sell the Property?
- [7.20] How Will the Sale Be Conducted?
- [7.21] What Constitutes Adequate Notice of the Proposed Sale?
- [7.22] Will the Proposed Sale Be Free and Clear of All Liens and Other Interests in the Subject Property?
- [7.23] Has the Interest of the Lienholder Been Adequately Protected?
- [7.24] Can the Lien Claimants Credit Bid an 11 U.S.C. §363 Sale?
- [7.25] How Will the Holder of a Mechanics Lien Be Made Aware of a Trustee’s Intent To Sell Property Free and Clear of Its Lien?
- V. [7.26] Motion To Abandon vs. Modify Stay — Which To Choose?
- VI. [7.27] Proofs of Claim
- VII. Preferences
- Chapter 8 — Trial Practice: Pleading Practice
- I. Pleading Practice
- [8.1] Identifying “Necessary Parties"
- [8.2] Defects in Claim for Lien
- [8.3] Counterclaims
- [8.4] Private Lien Foreclosure Suits in Federal Court
- [8.5] Construction Trust Funds
- [8.6] Secondary Subcontractors’ Foreclosure Actions
- [8.7] Municipalities’ Actions To Recover Lienable Improvements
- [8.8] 735 ILCS 5/2-619 Motions To Dismiss
- [8.9] Attorneys’ Fees
- II. Proof of Selected Issues
- Chapter 9 — Trial Practice: Breach and Damages
- I. [9.1] Trial in General
- II. [9.2] Breach
- III. [9.3] Measure of Damages
- [9.4] Full Performance
- [9.5] Substantial Performance
- [9.6] Owner’s Claim Against General Contractor for Lien Judgment
- [9.7] Owner’s Breach/No Substantial Performance by Contractor
- [9.8] Builder’s Breach/No Substantial Performance by Contractor
- [9.9] Effect of Statutory Violations on Mechanics Lien Claims
- [9.10] Breach of Mechanics Lien Act
- [9.11] Breach of the Home Repair and Remodeling Act by the Contractor
- [9.12] Other Types of Damages in Construction Cases; Incidental Expenses
- [9.13] Lost Profits
- [9.14] Interest
- [9.15] Attorneys’ Fees
- IV. [9.16] Quantum Meruit and Unjust Enrichment
- Chapter 10 — Statutory Defenses of Mechanics Lien Claims
- I. [10.1] Introduction
- II. Contract Requirements — Section 1 of the Mechanics Lien Act
- III. [10.9] General Contractor’s Notice Requirement — Section 5 of the Mechanics Lien Act
- IV. Timing and Contents of Mechanics Lien Claims — Section 7 of the Mechanics Lien Act
- [10.14] Section 7 of the Mechanics Lien Act
- [10.15] Mechanics Lien Timing Requirements
- [10.16] Two-Year Requirement
- [10.17] Necessary Parties
- [10.18] Three-Year and Five-Year Completion Requirements
- [10.19] Mechanics Lien Contents Requirements
- [10.20] Verification of Claim for Lien
- [10.21] Brief Statement of the Contract
- [10.22] Balance Due — Overstatement and Constructive Fraud
- [10.23] Description of the Property
- [10.24] Contractor or Subcontractor
- [10.25] Completion Date
- V. [10.26] Subcontractor’s Required Notices — Sections 21 and 24 of the Mechanics Lien Act
- VI. [10.30] 30-Day Notice To Commence Suit — Section 34 of the Mechanics Lien Act
- VII. [10.33] Summary Conclusion — The Mechanics of a Mechanics Lien Claim
- Chapter 11 — Common-Law and Consumer Statutory Defenses
- I. [11.1] A Contract Between Owner and Contractor
- II. [11.2] Owner — A Person or Entity with Any Legal or Beneficial Title
- III. [11.3] Only the Owner’s Interest Is Subject to Lien
- IV. [11.4] Illinois Homestead Exemption
- V. [11.5] “Owner” and “Owner of Record”
- VI. [11.6] Contractor or Joint Venturer
- VII. [11.7] Improvements Authorized or Knowingly Permitted
- VIII. [11.12] Legality of Contract
- IX. [11.17] Extras; Supplemental and Additional Work
- X. [11.21] Contract Terms Influencing Lien Rights — The Hierarchy of Contract Power
- [11.22] Contract Price — A Limit of Owner Liability
- [11.23] Payment upon Architect’s Certificate — Presentation of Waivers
- [11.24] Completion Beyond Three Years from Commencement
- [11.25] Waiver of Contract Terms
- [11.26] “No-Lien” Contract Provisions
- [11.27] Pay-When-Paid Provisions
- [11.28] Settlement with Owner
- [11.29] Completion
- [11.30] Alternative Dispute Resolution
- XI. [11.31] Performance, Breach, Justifiable Abandonment
- XII. [11.39] Estoppel — Constructive Fraud
- XIII. [11.40] Slander of Title
- XIV. [11.41] Waiver of Liens
- [11.42] Is There Reliance if Owner Knows Subcontractor Is Not Paid?
- [11.43] Owner Fraud on Subcontractor
- [11.44] Trade Usage/Customary Practice
- [11.45] Ambiguous Waiver
- [11.46] Waiver of Lien on Premises or Money Due or Both?
- [11.47] Stolen Lien Waivers
- [11.48] Consideration Not Required
- [11.49] Waiver of Lien for Future Work
- [11.50] Reformation of Full Waivers to Partial Waivers
- [11.51] Mistakenly Issued Waivers
- [11.52] Owner Breach
- XV. [11.53] A Few Common Nonstatutory Claims Against Owners
- Chapter 12 — Miscellaneous Remedies
- I. [12.1] Scope of Chapter
- II. Alternative Theories of Recovery
- [12.2] Mechanics Lien Act as Exclusive Remedy Against Those Not in Privity of Contract
- [12.3] Equitable Liens
- [12.4] Third-Party Beneficiary Theory
- [12.5] Subcontractors and Owners Are Incidental Beneficiaries to Each Other
- [12.6] Conflicting Claims Among General Contractor’s Creditors
- [12.7] Actions Against Surety on Payment Bonds
- [12.8] Actions Against Government Agency for Failure To Obtain Statutory Bond
- [12.9] United States Department of Housing and Urban Development Projects
- [12.10] Unjust Enrichment/Quantum Meruit
- [12.11] Constructive Trusts
- [12.12] Sureties
- [12.13] Contractors
- [12.14] Bankruptcy
- III. [12.15] Assignment
- IV. [12.16] Copartners or Joint Claimants
- V. [12.17] Death
- VI. [12.18] Fire or Other Destruction
- VII. [12.19] Former Adjudication
- VIII. [12.20] General Settlement
- IX. [12.21] Merger
- X. [12.22] Mistake
- XI. [12.23] Novation
- XII. [12.24] Removal of Material from Site
- XIII. [12.25] Subrogation
- XIV. [12.26] Watercraft
- Chapter 13 — Attorneys’ Fees and §17 of the Mechanics Lien Act
- I. [13.1] Introduction
- II. [13.2] Section 17 of the Mechanics Lien Act
- III. [13.3] Awards of Attorneys’ Fees — Generally
- IV. [13.4] Specific Findings Under §17 of the Mechanics Lien Act
- V. [13.5] Prevailing Party Doctrine
- VI. [13.6] Amounts Undisputedly Owed to Contractor
- VII. [13.7] Only Original Owner Liable
- VIII. [13.8] Conclusion
- Chapter 14 — Forms
- I. [14.1] Mechanics Lien Information Statement — Public Project
- II. [14.2] Mechanics Lien Information Statement — Private Project
- III. [14.3] Original Contractor’s Claim for Lien — Private Project
- IV. [14.4] Notice of Claim of Subcontractor or Material Supplier (770 ILCS 60/24)
- V. [14.5] Notice of Claim of Subcontractor to Owner (770 ILCS 60/5 and 60/21)
- VI. [14.6] Subcontractor’s Notice and Claim for Lien to Persons Not Found or Not Residing in County (770 ILCS 60/25)
- VII. [14.7] Subcontractor’s Claim for Lien
- VIII. [14.8] Contractor’s Affidavit (770 ILCS 60/5)
- IX. [14.9] Subcontractor’s Notice to Owner — Owner-Occupied, Single-Family Residence (770 ILCS 60/5)
- X. [14.10] Notice and Demand To Commence Suit — Private Project (770 ILCS 60/34)
- XI. [14.11] Final Waiver of Lien — Unlimited as to Time
- XII. [14.12] Partial Waiver of Lien — Limited to Amount Paid
- XIII. [14.13] Waiver of Lien to Date — Unlimited as to Amount
- XIV. [14.14] Affidavit as to Unknown Owners, Unknown Necessary Parties, and Non-Record Claimants (770 ILCS 60/11)
- XV. [14.15] Affidavit for Publication
- XVI. [14.16] Notice of Foreclosure — Lis Pendens
- XVII. [14.17] General Contractor’s Complaint To Foreclose Mechanics Lien
- XVIII. [14.18] Judgment of Foreclosure and Sale
- XIX. [14.19] Public Lien and Bond Claim Notice
- XX. [14.20] Release of Mechanics Lien Claim — Private Project
- XXI. [14.21] Release of Public Funds Lien, Bond Claim, and Contract Claims — Public Project
- David T. Arena
David T. Arena
No bio available.
- Abraham E. Brustein
Abraham E. Brustein
No bio available.
- Timothy R. Conway
Timothy R. Conway
Timothy R. Conway is Of Counsel to Conway & Mrowiec Attorneys LLLP in Chicago, where he focuses on construction law. He is a member of the Society of Illinois Construction Attorneys and the American Bar Association Forum on Construction Law. Mr. Conway received his B.A. from DePaul University and his J.D. from Northwestern University Pritzker School of Law.
- Ann M. Edmonds
Ann M. Edmonds
No bio available.
- Jordan A. Finfer
Jordan A. Finfer
No bio available.
- William J. Holloway
William J. Holloway
William J. Holloway is a Partner at King Holloway Lipinski LLC in Chicago, where he concentrates his practice in real estate litigation. He is licensed in Illinois, Wisconsin, the United States District Courts in Illinois and Wisconsin, and the Seventh Circuit Court of Appeals. He is Editor of the Title Insurance Law Database, www.titleinsurancelaw.net, which contains numerous Illinois mechanics lien cases. He has been a Fellow of the American College of Trial Lawyers since 1985 and was inducted as a Fellow of the College of Labor and Employment Lawyers in 2000. He is a member of the Illinois Society of Trial Lawyers, the American Arbitration Association’s Employment Litigation Panel, and the Association of Attorney Mediators. He completed the program Mediating the Litigated Case at Pepperdine University School of Law’s Straus Institute for Dispute Resolution. Mr. Holloway received his B.S. from Iowa State University, his J.D. from Northwestern University Pritzker School of Law, and his M.S. in taxation from DePaul University.
- John A. Jeffries
John A. Jeffries
John A. Jeffries is Of Counsel to Locke Lord LLP in Chicago, where he focuses on business law, including construction disputes. He represents construction contractors in all aspects of their work and is the author of numerous articles for the construction industry. He is rated AV Preeminent for over 30 years by Martindale-Hubbell and is a Leading Lawyer and Super Lawyer. Mr. Jeffries received his B.S., J.D., LL.M, and Ph.D. from Indiana University.
- Peter M. King
Peter M. King
Peter M. King has a multifaceted litigation practice with King Holloway Lipinski LLC in Chicago and Glen Ellyn, dedicated to representing parties in real estate disputes and employers in labor and employment matters. He is a member of the Illinois Land Title Association and the Defense Research Institute. He also served an externship with the Special Prosecutions Bureau of the Cook County State’s Attorney’s Office in Chicago. Mr. King received his undergraduate degree from Eastern Illinois University and his J.D. from The John Marshall Law School.
- John S. Mrowiec
John S. Mrowiec
John S. Mrowiec is a General Partner at Conway & Mrowiec Attorneys LLLP in Chicago, where he focuses on construction litigation. He is a member of the Society of Illinois Construction Attorneys and the American Bar Association Forum on Construction Law and a Life Trustee of the Francis W. Parker School. Mr. Mrowiec received his J.D. from DePaul University School of Law, where he was the Articles & Notes Editor.
- Margery Newman
Margery Newman
Margery Newman is an Income Member at Bryce Downey & Lenkov LLC in Chicago, where she concentrates her practice in construction law, including complex construction litigation in both the private and public sectors, and related business litigation. She has served on the American Bar Association Forum Committee on the Construction Industry; the Chicago Bar Association Committees on Real Property, Construction Issues, Mechanics Liens, and Real Estate Litigation; and the Illinois State Bar Association Construction Law Committee and Real Estate Law Section Council. She is also a member of the Society of Illinois Construction Attorneys. She has authored numerous articles and lectured extensively on the construction industry and was an adjunct professor of construction law at The John Marshall Law School. Ms. Newman received her B.A. from Brooklyn College, her M.A. from Roosevelt University, and her J.D. with high distinction from The John Marshall Law School, where she was on the law review.
- Dennis J. Powers
Dennis J. Powers
Dennis J. Powers is a Partner at DLA Piper LLP (US) in Chicago, where he focuses on construction law and real estate and commercial litigation. He has been selected to Best Lawyers in America in the area of construction law, been designated an Illinois Super Lawyer in construction litigation, and is a member of the American and Chicago Bar Associations and the Construction Law Forum. Mr. Powers received his B.S. from Western Illinois University and his J.D. from the DePaul University College of Law.
- Richard P. Reichstein
Richard P. Reichstein
Richard P. Reichstein (retired) founded the Law Offices of Richard P. Reichstein, Ltd., in Chicago, focusing on building construction claims, government contracts, and general business litigation issues. He has been a member of the American, Illinois, and Chicago Bar Associations; the National Contract Management Association; General Contractors of America; and Associated General Contractors of Illinois. Mr. Reichstein received his M.B.A. from Northwestern University Kellogg School of Management and his J.D. from Chicago-Kent College of Law.
- Derek D. Samz
Derek D. Samz
No bio available.
- Mark Schaeve
Mark Schaeve
No bio available.
- Julia Jensen Smolka
Julia Jensen Smolka
Julia Jensen Smolka is a Partner at DiMonte & Lizak, LLC, in Park Ridge, where she focuses her practice on bankruptcy, litigation, estate planning, and mechanics liens. She is a member of the Illinois State Bar Association. Ms. Smolka received her B.A. from the University of Illinois at Chicago and her J.D. from Loyola University Chicago School of Law.
- Alan L. Stefaniak
Alan L. Stefaniak
No bio available.
- Michael J. Torchalski
Michael J. Torchalski
Michael J. Torchalski is sole practitioner at Torch Legal in Crystal Lake, where he focuses on commercial litigation; real estate tax appeals; condominium and homeowners’ associations; business and corporate law; estate planning, probate, and trust administration; real estate transactions and title insurance; and mechanics liens. He served as a law clerk for Judge R. McMillen of the United States District Court in Chicago. Mr. Torchalski received his B.A. from the University of Illinois at Urbana-Champaign and his J.D. with honors from Chicago-Kent College of Law.
Mechanics Liens in Illinois (ARCHIVED 2014 EDITION)
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