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Category Archives: Mechanics Liens

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Construction Mortgage Foreclosure Does Not Wipe Out Reciprocal Easement Agreement Rights: Bank of America v. Cannonball

Posted in Construction Finance and Insolvency, Illinois, Mechanics Liens, States, Uncategorized

A foreclosing construction lender recently tried to wipe out liens securing debt under a shopping center cross-use and easement agreement. The Illinois Appellate Court denied that attempt. The decision: Bank of America v. Cannonball LLC. Backstory It starts with a new shopping center with a Home Depot, a Kohl’s, and a Target. The local village… Continue Reading

No Mechanics Lien For Pre-Purchase Due Diligence Consultants

Posted in Claims, Environmental, Illinois, Mechanics Liens, States

Fees for property purchase feasibility consulting are not secured by a mechanics lien. That’s what a panel of Illinois Appellate Court Justices held in Mostardi-Platt Associates v. Czerniejewski. Backstory Power Holdings of Illinois wants to build a new synthetic fuel plant that processes coal into gas. They need land for the proposed plant. So, as… Continue Reading

Construction Contract Requires Written Invoice Before Owner Must Pay Contractor: Kasinecz v. Duffy

Posted in Completion, Illinois, Mechanics Liens, States, Uncategorized

A panel of Illinois Appellate Court justices recently reminded contractors: if you want to get paid, comply with your contract. That reminder—along with some other interesting things to remember—comes in this decision: Kasinecz v. Duffy (PDF). Kasinecz v. Duffy Backstory Kasinecz v. Duffy starts as an owner and prime contractor contract to renovate a building…. Continue Reading

Illinois House Votes to Pass HB3636 to Amend Mechanics Lien Act

Posted in Bills and Proposed Legislation, Illinois, Mechanics Liens

This afternoon, the Illinois House voted to pass (PDF) HB3636, a bill to amend the Illinois Mechanics Lien Act and overturn the Illinois Supreme Court’s Cypress Creek v. LaSalle Bank (PDF) on the priority of construction mortgages vs. mechanics liens. Already passed by the Illinois Senate, this bill now goes to Governor Quinn for him… Continue Reading

Video: Plain Language Explanation of Cypress Creek and House Bill 3636

Posted in Mechanics Liens

Do you get a headache trying to navigate through the Illinois Supreme Court’s Cypress Creek decision on mechanic lien vs. mortgage priority and Illinois House Bill 3636 to seeking to overturn that decision? Here’s relief. The Illinois House Judiciary Committee held hearings on House Bill 3636 yesterday in Chicago. At hearings last spring the committee… Continue Reading

Proposed Retainage Limits Under Amendments to the Illinois Contractor Prompt Payment Act Don’t Pass; New Mechanics Lien Notice Requirements Do

Posted in Bills and Proposed Legislation, Illinois, Mechanics Liens, States

In this past post I mentioned a bill (HB344) in the Illinois legislature to amend the Illinois Contractor Prompt Payment Act putting caps on retainage under private construction contract and subcontracts.  The legislative session has ended and the bill did not emerge from the Illinois’s Senate Executive Committee and will not be enacted this spring. … Continue Reading