Introduction

LibraryTurner on Illinois Mechanics Liens (2016 Ed.)
INTRODUCTION

How to Best Use This Book

This book has two goals. One is to provide a straightforward and understandable explanation of mechanics lien law. The other is to provide attorneys authorities that can be a starting point for legal research. The text seeks to provide the reader with a basic understanding of the law. The footnotes contain not only citations to support the text but also additional explanatory material, including quotations, to help the reader acquire a deeper understanding.

Background Information

Mechanics liens are commercially important. Companies do extend credit based upon mechanics lien rights. Mechanics liens serve as security for contractors, subcontractors, and suppliers to extend credit to customers who might not otherwise be credit worthy. Mechanics liens therefore make it possible to construct buildings and make other improvements to real estate that might not otherwise be constructed or made.

Tradition has it that the first mechanics lien act was written by Thomas Jefferson and James Madison, and the first State to adopt a mechanics lien law was Maryland. The first recorded request for a State to adopt a mechanics lien law was by the commissioners appointed to encourage the development of the City of Washington. At the time the future capital of the country was part of Maryland. On September 8, 1791, at a meeting at which Thomas Jefferson and James Madison were both present, the commissioners adopted a "memorial" urging the General Assembly of Maryland to adopt a mechanics lien law. The law was adopted by Maryland before the end of the year.1 It is believed that Jefferson and Madison felt that the law was important for the development of the City of Washington.

The Illinois Mechanics Lien Act (the "Act") has benefits and risks for owners, contractors, subcontractors, lenders, purchasers, and title companies. But if the statutory tools are used properly, owners, lenders, title companies, and purchasers will be protected, and contractors and subcontractors will be paid. The statutory scheme is balanced to achieve this objective.2

For one hundred forty years the Act has been a political football. Between 1875 and 1903 it was repealed and rewritten four times. Finally, in 1903 a statute was adopted by the Illinois Legislature that, although occasionally amended, remained basically in the same form until 2005. But there were many judicial interpretations that were not always predictable or obvious from a simple reading of the statute. As a result, there were many traps created for the unwary. In 2005, the legislature adopted amendments recommended by the Chicago Bar Association's Construction and Mechanics Lien Subcommittee to make the statute less of a trap for the unwary. But not all of the ambiguities were eliminated. In addition, some statutory changes may have consequences that are not obvious.

How to Read and Interpret the Act

The University of Chicago Book Store sells a t-shirt that states, "That's all well and good in practice, but how does it work in theory?" Like other areas of law that are politically controversial, Illinois mechanics lien law is complicated. To practice mechanics lien law successfully requires an understanding of both its theory and its practical applications and limitations. For example, Section 39 of the Act states that it "is and shall be liberally construed as a remedial act."3 But with respect to satisfying the technical requirements of the Act, the statute is construed strictly in derogation of the common law.4 "[C]ourts...

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