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
Category Archives: Illinois
Subscribe to Illinois RSS FeedMortgage vs. Mechanics Lien: Following- Up on LaSalle Bank, N.A. v. Cypress Creek 1, LP
Posted in Illinois, Mechanics Liens, StatesLaSalle Bank, N.A. v. Cypress Creek 1, LP: a final wrap-up on how the Illinois Supreme Court decided between rival claims of a construction lender and mechanics lien claims, the effect that decision has for the future, and legislative initiatives in the to amend the Mechanics Lien Act and and change the outcome in future cases
Illinois Supreme Court Decides Mortgage vs. Mechanics Liens: LaSalle Bank, N.A. v. Cypress Creek 1, LP
Posted in Illinois, Mechanics Liens, StatesMechanics Lien Priority: Contractor vs. Lender – Illinois Supreme Court Decides How Much Construction Lender Subrogation
How Enforceable Are Limitations of Liability: Something a Contractor, Architect, and Engineer Would Like to Know
Posted in Illinois, Limitation of Liability and Exculpatory Clauses, StatesA short piece on enforceability of limitation of liability clauses in contracts, including construction, architectural, engineering, and other professional service contracts
Where Does Your Mechanics Lien Claim Need to Identify the Last Date You Worked
Posted in Illinois, Mechanics Liens, StatesWhere and when claims of mechanics lien in Illinois must identify the date work was last provided on a project
Mechanics Lien Priority: Contractor vs. Lender – Part 5: How Much Lender Subrogation
Posted in Illinois, Mechanics Liens, StatesPriority of construction lender subrogating to claims of unpaid contractors who didn’t perfect mechanics liens is junior to lien claims of contractors who did perfect, at least for part of the foreclosure sale money
What are Performance Bonds and How Do They Work
Posted in Bonds, Illinois, States, SuretiesWelcome to the second article in a three-part series on Illinois surety bonds, compliments of guest author Danielle Rodabaugh. Danielle is a principal for SuretyBonds.com and is discussing the three basic types of construction bonds: Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ● Bid bonds Normal 0 false false false EN-US X-NONE… Continue Reading
Krahl Construction: Owner Claims Over-Billing Led to Tipping Off the FBI
Posted in Claims, Construction Finance and Insolvency, Illinois, StatesKrahl Construction customer sues alleging over-billing and tipping-off law enforcement
Mechanics Lien Priority: Contractor vs. Lender – Part 4: Priority For Enhancement
Posted in Illinois, Mechanics Liens, StatesEnhancement priority for mechanics liens: how contractors and others can get partial priority of lenders with earlier-recorded mortgages
Mechanics Lien Priority: Contractor vs. Lender – Part 3
Posted in Illinois, Mechanics Liens, StatesWhat gets priority: mortgage or mechanics lien? Depends on when the mortgage was recorded, when the construction contract was formed, and when the contractor started their work
Mechanics Lien Priority: Contractor vs. Lender – Part 2
Posted in Illinois, Mechanics Liens, StatesBackground facts of the LaSalle Bank, N.A. v. Cypress Creek 1, LP mechanics lien vs. mortgage priority decision in Illinois
Mechanics Lien Priority: Contractor vs. Lender – Part 1
Posted in Attorneys Fees and Costs, Illinois, Mechanics Liens, StatesWho has “priority” when a mortgage lender and mechanics lien claimant both want they money from the foreclosure sale of property with an uncompleted construction project on it. Explaining the basics of “priority”
Real Estate and Construction in Chicago: Crain’s Sobering Video Forecast
Posted in Illinois, Polls, StatesFocusing locally today on my own hometown, this Crain’s broadcast offers a sobering forecast for the Chicagoland residential real estate and construction markets. Do you agree? Watch the video, vote, and elaborate by posting a comment using the link below below. Do you agree with this forecast?(trends)
Arbitration Waived by Demand to Foreclose Mechanics Lien
Posted in Arbitration, Illinois, Mechanics Liens, StatesOwner’s waives arbitration with demand on contractor to foreclose mechanics lien or lose it forever under Section 34 of the Illinois Mechanics Lien Act
Krahl Construction: Lender and Surety Lawsuits
Posted in Construction Finance and Insolvency, Illinois, StatesFifth Third Bank and Travelers Sue President of Krahl Construction
Krahl Construction: Liquidation and Notice to Creditors
Posted in Construction Finance and Insolvency, Illinois, StatesLetter from Krahl Construction’s trustee explaining assignment for benefit of creditors process and asking creditors to submit claims
Krahl Construction Closes: FBI Raid and Assignment For The Benefit of Creditors
Posted in Construction Finance and Insolvency, Illinois, StatesServing search warrants earlier this month in a raid on Krahl Construction’s headquarters, the FBI seized the Chicago company’s computers and files. Several days later, company executives announced the company would shut its doors. Then today Krahl set up a trust and assigned its assets into the trust for the benefit of its creditors. Howard… Continue Reading
Chicago Spire Closer to Resuming Work
Posted in Illinois, Off Topic Posts, StatesNew financing brings resumption of work on Chicago Spire one step closer
Friday Night Lights: Inside an FDIC Bank Takeover With 60 Minutes
Posted in FDIC & Bank Failures, Illinois, States60 Minutes segment going inside the FDIC’s takeover and resolution of Chicago’s Heritage Community Bank and purchase by MB Financial
Construction Checkup: The Legacy at Millennium Park
Posted in Illinois, Off Topic Posts, StatesConstruction Progress Report for The Legacy at Millennium Park in Chicago
Illinois Home Repair and Remodeling Act: Contractors Must Still Beware
Posted in Alternative Dispute Resolution, Arbitration, Claims, IllinoisThe Illinois Home Repair and Remodeling Act: recent decisions on whether contractors who fail to comply can get paid and the Home Builders Association of Illinois report on how to raise your odds of successful compliance
Proposed Retainage Limits Under Amendments to the Illinois Contractor Prompt Payment Act Moving Again
Posted in Bills and Proposed Legislation, Illinois, Retainage, StatesIllinois bill (HB344) to amend the Contractor Prompt Payment Act to put caps on retainage under private construction contract and subcontracts is active and moving again.
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, StatesIn 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
Retainage Limits Under Proposed Amendments to the Illinois Contractor Prompt Payment Act
Posted in Bills and Proposed Legislation, Illinois, Retainage, StatesThe Illinois Senate is considering a bill to amend the Illinois Contractor Prompt Payment Act (the “Act”) affecting when and how (1) owners pay prime contractors and (2) prime contractors pay their subcontractors. If enacted, this bill (HB 0344) will: Limit retainage on private construction projects to a maximum of 5 percent of payments to… Continue Reading