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Category Archives: Illinois

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Waiting for Claim Assignment Doesn’t Toll Statute of Limitations: American Family v. Plunkett

Posted in Assignments, Illinois, Insurance, States, Statute of Limitations

After paying a flood damage claim, an insurance company waits too long to get an assignment of the rights to sue a contractor and architect. Result: the insurance company’s lawsuit gets dismissed and the Illinois Appellate Court affirms. The decision: American Family v. Plunkett (PDF). Backstory An owner’s property floods in the summer of 2006…. Continue Reading

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

What are Performance Bonds and How Do They Work

Posted in Bonds, Illinois, States, Sureties

Welcome 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 Closes: FBI Raid and Assignment For The Benefit of Creditors

Posted in Construction Finance and Insolvency, Illinois, States

Serving 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