Table of Contents
Library | Turner on Illinois Mechanics Liens (2016 Ed.) |
INTRODUCTION...............................................................................................................xvii
CHAPTER I - WHAT ARE THE ELEMENTS OF A MECHANICS LIEN? 770 ILCS 60/1(a) AND (b) EXPLAINED..............................................................................1
A. How and When a Lien is Created...............................................................................1
1. What is a Contractor?............................................................................................1
2. What is a Subcontractor?......................................................................................1
3. Unity of Interest.....................................................................................................3
4. What Does it Mean to Improve the Real Estate?...................................................3
5. When Does a Lien Attach and When is it Secret?.................................................4
6. What is Required for an Enforceable Mechanics Lien Claim?.............................4
B. What is a Contract, Express or Implied, or Partly Expressed or Implied?.................5
1. Can a Single Lien Be Based Upon More Than One Contract?..............................5
2. Implied in Fact Contracts.......................................................................................6
3. The Differences Between Quantum Meruit and Unjust Enrichment.....................6
4. There Can Be No Mechanics Lien Based on Unjust Enrichment
Unless There is an Agreement or an Authorization to Do the Work......................7
5. Quantum Meruit as an Equitable Cause of Action................................................8
6. Quantum Meruit as a Measure of Damages..........................................................9
7. Extra Work.............................................................................................................9
8. Subcontractors Recovering for Extra Work.........................................................10
C. Who is an Owner Who Can Authorize Work?..........................................................11
D. What is "Knowingly Permitted?".............................................................................12
E. What are Lienable Services?....................................................................................15
1. Work, Labor, and Material Furnished to Improve the Land................................16
2. Fixtures................................................................................................................18
3. Rental Equipment................................................................................................19
4. What About Work in the Street? ..........................................................................20
5. Services Furnished for the Purpose of Improving the Land and Management of a Structure under Construction..................................................20
6. What is the Lienable Amount?............................................................................22
F. What Property Can Be Subject to a Mechanics Lien?.............................................23
1. Innocent Third Parties Are to Be Protected.........................................................23
2. The Work Must Benefit the Owner of the Land Where the Work is Being Done.....24
3. Work Done By Mistake on the Wrong Land.......................................................24
4. Multiple Parcels of Land.....................................................................................24
G. Consumer Protection Concerns................................................................................26
CHAPTER II - PRACTICAL CONSIDERATIONS........................................................29
PART I - EDUCATING THE CLIENT BEFORE THERE IS A PROBLEM........................29
A. Funding for the Job...................................................................................................30
B. Preconstruction Issues..............................................................................................30
1. Plans and Specifications......................................................................................30
2. Making Sure there is a Legally Enforceable Contract .........................................31
3. Reviewing the Contract or Subcontract ...............................................................32
a. In General......................................................................................................32
b. Clauses Directly Affecting the Right to Payment...........................................34
i. "Pay if paid"..........................................................................................34
ii. Insurance.................................................................................................34
iii. The Integration Clause...........................................................................34
C. Issues Arising While the Work is Being Performed ................................................35
1. The Importance of Adequate Records .................................................................35
2. Change Orders and Extra Work ...........................................................................35
3. Protecting and Preserving Mechanics Lien Rights .............................................37
a. Records..........................................................................................................37
b. The Construction Period................................................................................37
D. Pay Out Procedures...................................................................................................37
E. Conditions Precedent to Enforcement of the Lien or Contract................................38
1. Preconditions in the Contract...............................................................................38
2. Dispute Resolution Procedures.............................................................................38
PART II - PREPARING, SERVING, AND FILING NOTICES
AND LIEN CLAIMS TO PRESERVE MECHANICS LIEN RIGHTS -
DOING THE JOB RIGHT......................................................................................................39
A. Why Enforcing a Mechanics Lien is so Difficult.....................................................39
B. Time .......................................................................................................................40
C. Information the Attorney Will Need or Should Have..............................................40
1. Information From the Client................................................................................40
a. Where the Work was Done.............................................................................40
b. The Contract and its Terms............................................................................40
c. The Identity of the Owner of Record, Lender, Architect, and Construction Manager or Superintendent...........................................................................41
d. Evidence of the Last Day of Work..................................................................41
2. Information from the Public Records...................................................................42
a. In Cook County..............................................................................................42
b. In Other Counties..........................................................................................43
c. Addresses of Owners and Mortgagees...........................................................43
3. Special Requirements for Condominiums...........................................................43
4. Tract Searches from Title Companies and Services of other Private Entities ........44
D. Preparing Notices Under Sections 24, 21, and 25....................................................44
PART III - FILING SUIT.......................................................................................................45
A. Including Claims Other than Foreclosure of the Lien..............................................45
B. Claims Where the Project is a State or Local Governmental Job............................46
C. Where to File Suit....................................................................................................46
D. Naming Necessary and Permissible Parties.............................................................47
CHAPTER III - MAKING A LIEN AGAINST PRIVATE PROPERTY ENFORCEABLE..................................................................................................................49
PART I - PRELIMINARY MATTERS..................................................................................49
A. Information from the Client.....................................................................................49
1. The Identity of the Owner of Record...
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