SB1930 Engrossed LRB094 08997 LCB 41406 b

1     AN ACT concerning civil law.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Mechanics Lien Act is amended by changing
5 Sections 1, 2, 3, 5, 7, 11, 13, 21, 21.01, 21.02, 22, 24, 25,
6 26, 28, 30, 32, and 35 as follows:
 
7     (770 ILCS 60/1)  (from Ch. 82, par. 1)
8     Sec. 1. Contractor defined; amount of lien; waiver of lien;
9 attachment of lien; agreement to waive; when not enforceable.
10     (a) Any person who shall by any contract or contracts,
11 express or implied, or partly expressed or implied, with the
12 owner of a lot or tract of land, or with one whom the owner has
13 authorized or knowingly permitted to contract, to improve the
14 lot or tract of land or for the purpose of improving the tract
15 of land, or to manage a structure under construction thereon,
16 is known under this Act as a contractor and has a lien upon the
17 whole of such lot or tract of land and upon adjoining or
18 adjacent lots or tracts of land of such owner constituting the
19 same premises and occupied or used in connection with such lot
20 or tract of land as a place of residence or business; and in
21 case the contract relates to 2 or more buildings, on 2 or more
22 lots or tracts of land, upon all such lots and tracts of land
23 and improvements thereon for the amount due to him or her for
24 the material, fixtures, apparatus, machinery, services or
25 labor, and interest at the rate of 10% per annum from the date
26 the same is due. This lien extends to an estate in fee, for
27 life, for years, or any other estate or any right of redemption
28 or other interest that the owner may have in the lot or tract
29 of land at the time of making such contract or may subsequently
30 acquire and this lien attaches as of the date of the contract.
31     (b) As used in subsection (a) of this Section, "improve"
32 means thereon, or to furnish labor, services, material,

 

 

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1 fixtures, apparatus or machinery, forms or form work used in
2 the process of construction where cement, concrete or like
3 material is used for the purpose of or in the building,
4 altering, repairing or ornamenting any house or other building,
5 walk or sidewalk, whether the walk or sidewalk is on the land
6 or bordering thereon, driveway, fence or improvement or
7 appurtenances to the lot or tract of land or connected
8 therewith, and upon, over or under a sidewalk, street or alley
9 adjoining; or fill, sod or excavate such lot or tract of land,
10 or do landscape work thereon or therefor; or raise or lower any
11 house thereon or remove any house thereto, or remove any house
12 or other structure therefrom, or perform any services or incur
13 any expense as an architect, structural engineer, professional
14 engineer, land surveyor or property manager in, for or on a lot
15 or tract of land for any such purpose; or drill any water well
16 thereon; or furnish or perform labor or services as
17 superintendent, time keeper, mechanic, laborer or otherwise,
18 in the building, altering, repairing or ornamenting of the
19 same; or furnish material, fixtures, apparatus, machinery,
20 labor or services, forms or form work used in the process of
21 construction where concrete, cement or like material is used,
22 or drill any water well on the order of his agent, architect,
23 structural engineer or superintendent having charge of the
24 improvements, building, altering, repairing or ornamenting the
25 same. , is known under this Act as a contractor, and has a lien
26 upon the whole of such lot or tract of land and upon adjoining
27 or adjacent lots or tracts of land of such owner constituting
28 the same premises and occupied or used in connection with such
29 lot or tract of land as a place of residence or business; and
30 in case the contract relates to 2 or more buildings, on 2 or
31 more lots or tracts of land, upon all such lots and tracts of
32 land and improvements thereon for the amount due to him for
33 such material, fixtures, apparatus, machinery, services or
34 labor, and interest at the rate of 10% per annum from the date
35 the same is due. This lien extends to an estate in fee, for
36 life, for years, or any other estate or any right of

 

 

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1 redemption, or other interest which the owner may have in the
2 lot or tract of land at the time of making such contract or may
3 subsequently acquire.
4     (c) The taking of additional security by the contractor or
5 sub-contractor is not a waiver of any right of lien which he
6 may have by virtue of this Act, unless made a waiver by express
7 agreement of the parties and the waiver is not prohibited by
8 this Act. This lien attaches as of the date of the contract.
9     (d) An agreement to waive any right to enforce or claim any
10 lien under this Act where the agreement is in anticipation of
11 and in consideration for the awarding of a contract or
12 subcontract, either express or implied, to perform work or
13 supply materials for an improvement upon real property is
14 against public policy and unenforceable. This Section does not
15 prohibit release of lien under subsection (b) of Section 35 of
16 this Act or prohibit subordination of the lien, except as
17 provided in Section 21.
18 (Source: P.A. 86-807; 87-361.)
 
19     (770 ILCS 60/2)  (from Ch. 82, par. 2)
20     Sec. 2. Labor, services, material, fixtures, apparatus or
21 machinery, forms or form work furnished by mistake. Any person
22 furnishing labor, services, labor or material, fixtures,
23 apparatus or machinery, forms or form work for the erection of
24 a building, or structure, or improvement, by mistake upon land
25 owned by another than the party contracting as owner, shall
26 have a lien for such labor, services, labor or material,
27 fixtures, apparatus or machinery, forms or form work upon such
28 building, or structure or improvement, and the court, in the
29 enforcement of such lien, shall order and direct such building,
30 structure or improvement to be separately sold under its
31 judgment, and the purchaser may remove the same within such
32 reasonable time as the court may fix.
33 (Source: P.A. 84-452; 84-545.)
 
34     (770 ILCS 60/3)  (from Ch. 82, par. 3)

 

 

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1     Sec. 3. Labor, services, material, fixtures, apparatus or
2 machinery, forms or form work furnished for lands of married
3 person; lands held by husband and wife. If any such labor,
4 services, material, fixtures, apparatus or machinery, forms or
5 form work or labor are performed upon or materials are
6 furnished for lands belonging to any married person, with the
7 married person's knowledge and not against the married person's
8 protest in writing, as provided in Section 1 of this Act, in
9 pursuance of a contract with the spouse of such married person,
10 the person furnishing such labor, services, material,
11 fixtures, apparatus or machinery, forms or form work or
12 materials shall have a lien upon such property, the same as if
13 such contract had been made with the married person, and in
14 case the title to such lands upon which improvements are made
15 is held by married persons husband and wife jointly, the lien
16 given by this act shall attach to such lands and improvements,
17 if the improvements be made in pursuance of a contract with
18 both of them, or in pursuance of a contract with either of
19 them, and in such cases no claim of homestead right set up by a
20 husband or wife shall defeat the lien given by this Act. For
21 purposes of this Section, property shall be deemed to be held
22 jointly if title is held by the parties either in tenancy by
23 the entirety or jointly, with right of survivorship and not as
24 tenants in common.
25 (Source: P.A. 78-846.)
 
26     (770 ILCS 60/5)  (from Ch. 82, par. 5)
27     Sec. 5. Statement of persons furnishing labor, services,
28 material, fixtures, apparatus or machinery, forms or form work
29 notice to owner of waiver; size of type.
30     (a) It shall be the duty of the contractor to give the
31 owner, and the duty of the owner to require of the contractor,
32 before the owner or his agent, architect, or superintendent
33 shall pay or cause to be paid to the contractor or to his order
34 any moneys or other consideration due or to become due to the
35 contractor, or make or cause to be made to the contractor any

 

 

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1 advancement of any moneys or any other consideration, a
2 statement in writing, under oath or verified by affidavit, of
3 the names and addresses of all parties furnishing materials and
4 labor, services, material, fixtures, apparatus or machinery,
5 forms or form work and of the amounts due or to become due to
6 each. Merchants and dealers in materials only shall not be
7 required to make statements required in this Section.
8     (b) The following shall apply to an owner-occupied
9 single-family residence:
10         (i) Each contractor shall provide the each owner or his
11     or her agent, either as part of the contract or as a
12     separate printed statement given before the owner or his
13     agent makes the first payment for labor, materials,
14     fixtures, apparatus or machinery, the following:
15         "THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A
16     SWORN STATEMENT OF PERSONS FURNISHING MATERIALS AND LABOR,
17     SERVICES, MATERIAL, FIXTURES, APPARATUS OR MACHINERY,
18     FORMS OR FORM WORK BEFORE ANY PAYMENTS ARE REQUIRED TO BE
19     MADE TO THE CONTRACTOR."
20         If the owners of the property are persons living
21     together, the aforesaid statement is conclusively presumed
22     given to each such owners if given to one of them. printed
23     in the contract, the statement shall be set in type that is
24     at least the same size as the largest type used in the body
25     of the contract and is bold face or another font that
26     clearly contrasts with and sets the statement apart from
27     the rest of the body of the contract.
28         (ii) Each It shall be the duty of each subcontractor
29     who has furnished, or is furnishing, labor, services,
30     material, fixtures, apparatus or machinery, forms or form
31     work materials or labor for an existing owner-occupied
32     single-family residence, in order to preserve his lien,
33     shall to notify the occupant either personally or by
34     certified mail, return receipt requested, addressed to the
35     occupant or his agent at the residence within 60 days from
36     his first furnishing labor, services, material, fixtures,

 

 

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1     apparatus or machinery, forms or form work, of his
2     agreement to do so. materials or labor, that he is
3     supplying materials or labor. Any notice given after 60
4     days by the subcontractor, however, shall preserve his
5     lien, but only to the extent that the owner has not been
6     prejudiced by payments made before receipt of the notice.
7         The notice shall contain the name and address of the
8     subcontractor or material man, the date he started to work
9     or to deliver materials, the type of work done and to be
10     done or the type of labor, services, material, fixtures,
11     apparatus or machinery, forms or form work materials
12     delivered and to be delivered, and the name of the
13     contractor requesting the work. The notice shall also
14     contain the following warning:
15     
"NOTICE TO OWNER
16         The subcontractor providing this notice has performed
17     work for or delivered material to your home improvement
18     contractor. These services or materials are being used in
19     the improvements to your residence and entitle the
20     subcontractor to file a lien against your residence if the
21     labor, services, material, fixtures, apparatus or
22     machinery, forms or form work or materials are not paid for
23     by your home improvement contractor. A lien waiver will be
24     provided to your contractor when the subcontractor is paid,
25     and you are urged to request this waiver from your
26     contractor when paying for your home improvements."
27         (iii) The statement and the notices required by
28     subdivisions (b)(i) and (b)(ii) of this Section The warning
29     shall be in at least 10 point boldface type. For purposes
30     of this Section, notice by certified mail is considered
31     served at the time of its mailing. Any notice given
32     pursuant to subdivision (b)(ii) of this Section after 60
33     days by the subcontractor, however, shall preserve his or
34     her lien, but only to the extent that the owner has not
35     been prejudiced by payments made before receipt of the
36     notice.

 

 

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1 (Source: P.A. 87-362.)
 
2     (770 ILCS 60/7)  (from Ch. 82, par. 7)
3     Sec. 7. Claim for lien; third parties; errors or
4 overcharges; multiple buildings or lots. No contractor shall be
5 allowed to enforce such lien against or to the prejudice of any
6 other creditor or incumbrancer or purchaser, unless within 4
7 months after completion, or if extra or additional work is done
8 or labor, services, material, fixtures, apparatus or
9 machinery, forms or form work is delivered therefor within 4
10 months after the completion of such extra or additional work or
11 the final delivery of such extra or additional labor, services,
12 material, fixtures, apparatus or machinery, forms or form work,
13 he or she shall either bring an action to enforce his or her
14 lien therefor or shall file in the office of the recorder of
15 the county in which the building, erection or other improvement
16 to be charged with the lien is situated, a claim for lien,
17 verified by the affidavit of himself or herself, or his or her
18 agent or employee, which shall consist of a brief statement of
19 the claimant's contract, the balance due after allowing all
20 credits, and a sufficiently correct description of the lot,
21 lots or tracts of land to identify the same. Such claim for
22 lien may be filed at any time after the claimant's contract is
23 made, and as to the owner may be filed at any time after the
24 contract is made and within 2 years after the completion of the
25 contract, or the completion of any extra work or the furnishing
26 of any extra labor, services, material, fixtures, apparatus or
27 machinery, forms or form work thereunder, and as to such owner
28 may be amended at any time before the final judgment. No such
29 lien shall be defeated to the proper amount thereof because of
30 an error or overcharging on the part of any person claiming a
31 lien therefor under this Act, unless it shall be shown that
32 such error or overcharge is made with intent to defraud; nor
33 shall any such lien for material be defeated because of lack of
34 proof that the material after the delivery thereof, actually
35 entered into the construction of such building or improvement,

 

 

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1 although it be shown that such material was not actually used
2 in the construction of such building or improvement; provided,
3 that Provided, it is shown that such material was delivered
4 either to the owner or his or her agent for that building or
5 improvement, to be used in that building or improvement, or at
6 the place where said building or improvement was being
7 constructed, for the purpose of being used in construction or
8 for the purpose of being employed in the process of
9 construction as a means for assisting in the erection of the
10 building or improvement in what is commonly termed forms or
11 form work where concrete, cement or like material is used, in
12 whole or in part.
13     In case of the construction of a number of buildings under
14 contract between the same parties, it shall be sufficient in
15 order to establish such lien for material, if it be shown that
16 such material was in good faith delivered at one of these
17 buildings for the purpose of being used in the construction of
18 any one or all of such buildings, or delivered to the owner or
19 his or her agent for such buildings, to be used therein; and
20 such lien for such material shall attach to all of said
21 buildings, together with the land upon which the same are being
22 constructed, the same as in a single building or improvement.
23 In the event the contract relates to 2 or more buildings on 2
24 or more lots or tracts of land, then all of these buildings and
25 lots or tracts of land may be included in one statement of
26 claims for a lien.
27     A statement that a party is a subcontractor shall not
28 constitute an admission by the lien claimant that its status is
29 that of subcontractor if it is later determined that the party
30 with whom the lien claimant contracted was the owner or an
31 agent of the owner.
32 (Source: P.A. 83-358.)
 
33     (770 ILCS 60/11)  (from Ch. 82, par. 11)
34     Sec. 11. Averments in pleading; parties; dismissal;
35 notice.

 

 

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1     (a) Any pleading asserting a claim for lien The complaint
2 shall contain (i) a brief statement of the contract or
3 contracts to which the person (hereinafter called the
4 "claimant") asserting a claim for lien in the pleading is a
5 party and by the terms of which the claimant is employed to
6 furnish lienable services or material for the real property
7 (herein called the "premises"), (ii) the date when the contract
8 or contracts were dated or entered into, (iii) the date on
9 which the claimant's work, labor or material labor, services,
10 material, fixtures, apparatus or machinery, forms or form work
11 was last performed or furnished, whether the claimant completed
12 furnishing or performing its work, labor and material labor,
13 services, material, fixtures, apparatus or machinery, forms or
14 form work and if not why, (iv) on which it is founded, the
15 date, when made, and when completed, if not completed, why, and
16 it shall also set forth the amount due and unpaid to the
17 claimant, (v) , a description of the premises, and (vi) premises
18 which are subject to the lien, and such other facts as may be
19 necessary for to a full understanding of the rights of the
20 parties. Where plans and specifications are by reference made a
21 part of a the contract that is required to be alleged in a
22 pleading, it shall not be necessary to set the same out in the
23 pleading pleadings or attached as exhibits, but the same may be
24 produced on the trial of the suit. It shall not be necessary to
25 include a statement of any contract to which the claimant is
26 not a contracting party.
27     (b) Each claimant shall make as parties to its pleading
28 (hereinafter called "necessary parties") the owner of the
29 premises, the contractor, all persons in the chain of contracts
30 between the claimant and the owner, all persons who have
31 asserted or may assert liens against the premises under this
32 Act, and any other person against whose interest in the
33 premises the claimant asserts a claim.
34     (c) Necessary parties whose claims or interests are not
35 disclosed by a document recorded at the time a proper lis
36 pendens of the action under Section 2-1901 of the Code of Civil

 

 

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1 Procedure has been recorded (or if the action is instituted as
2 a mortgage foreclosure at the time a proper notice of
3 foreclosure under Section 15-1503 of the Code of Civil
4 Procedure has been recorded) may be named and made parties
5 under the description of "unknown necessary parties". Persons
6 other than unknown necessary parties who may be interested in
7 the premises but whose identities are unknown to the claimant
8 may be named and made parties to the action under the
9 description of "unknown owners".
10     (d) A claimant may, in its, his or her discretion, make as
11 parties (hereinafter called "permissible parties") to the
12 action any other persons having a legal, equitable or
13 possessory interest in or claim to the whole or any part of the
14 premises, but failure to make any such permissible party a
15 party to the action shall not defeat the lien, but the claim of
16 each claimant asserting a lien claim under this Act in the
17 action shall be subject to the interest of such permissible
18 party not made a party, and the action shall not adversely
19 affect the interest of any such permissible party not made a
20 party and not served with notice by summons or publication in
21 the action as provided in this Act.
22     (e) The plaintiff shall cause notice to be given to all
23 such necessary parties or cause them to be served by summons or
24 by publication in like manner and upon the same conditions as
25 in other civil actions, and the plaintiff's failure to do so,
26 shall be grounds for judgment against him, her, or it on the
27 merits. A claimant other than the plaintiff asserting a claim
28 in the action under this Act shall also cause notice to be
29 given to or cause summons to be served upon any necessary
30 parties who have not been joined to the action, and his, her,
31 or its failure to do so shall be grounds for judgment against
32 him, her or it on the merits. Process may issue and service by
33 publication may be had against those persons so named under the
34 descriptions of "unknown necessary parties" or "unknown
35 owners", and judgments entered against them shall be of the
36 same effect as though they had been designated by and served

 

 

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1 under their proper names, provided that any judgment shall only
2 bind any person served by publication with respect to their
3 interests in the premises and liens asserted or assertable
4 against the premises under this Act. A person who has been
5 properly served in the action by summons or by publication by
6 any claimant shall be deemed properly served by all claimants
7 in the action regardless of whether such persons have been
8 served before or after such claimants or any of them shall have
9 appeared, filed their pleadings or become parties to the
10 action, provided that nothing in this Section 11 shall excuse a
11 claimant from joining all necessary parties to the claimant's
12 pleading, whether as named parties, unknown necessary parties,
13 or unknown owners, within the time permitted by this Act.
14 Nothing in this Section 11 shall prevent service by publication
15 in any proceeding brought under this Act where authorized by
16 this Act in like manner and upon the same conditions as in
17 other civil actions.
18     (f) Any necessary party or permissible party who has not
19 been joined to the action under his, her, or its proper name,
20 may, upon application of such party The plaintiff shall make
21 all parties interested, of whose interest he is notified or has
22 knowledge, parties defendant, and summons shall issue and
23 service thereof be had as in other civil actions; and when any
24 defendant resides or has gone out of the State, or on inquiry
25 cannot be found, or is concealed within this State, so that
26 process cannot be served on him, the plaintiff shall cause a
27 notice to be given to him, or cause a copy of the complaint to
28 be served upon him, in like manner and upon the same conditions
29 as is provided in other civil actions, and his failure to so
30 act with regard to summons or notice shall be ground for
31 judgment against him as upon the merits. The same rule shall
32 prevail with counterclaimants with regard to any person of
33 whose interest they have knowledge, and who are not already
34 parties to the suit or action. Parties in interest, within the
35 meaning of this act, shall include persons entitled to liens
36 thereunder whose claims are not, as well as are, due at the

 

 

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1 time of the commencement of suit, and such claim shall be
2 allowed subject to a reduction of interest from the date of
3 judgment to the time the claim is due; also all persons who may
4 have any valid claim to the whole or any part of the premises
5 upon which a lien may be attempted to be enforced under the
6 provisions thereof, or who are interested in the subject matter
7 of the suit. Any such persons may, on application to the court
8 wherein the action suit is pending, be made or become a party
9 parties at any time before final judgment, but such joinder
10 shall not give such party any substantive rights not otherwise
11 provided by law, or excuse failure to comply with the
12 provisions of any applicable law.
13     (g) No action under the provisions of this act shall be
14 voluntarily dismissed by the party bringing it without due
15 notice to all parties to before the action, court and upon
16 leave of court for upon good cause shown and upon terms
17 approved designated by the court.
18 (Source: P.A. 79-1358.)
 
19     (770 ILCS 60/13)  (from Ch. 82, par. 13)
20     Sec. 13. Defendant shall answer as in other civil actions.
21     (a) The owner may make any defense against the contractor
22 by way of counter claim that he could in any civil action for
23 the payment of money, and may have the same right of recovery
24 on proof of such in excess of the claim of the contractor
25 against the contractor only, but for matters not growing out of
26 the contract recovery shall be without prejudice to the rights
27 of the sub-contractors thereunder for payment out of the
28 contract price or fund.
29     (b) In any proceedings to enforce a lien on account of
30 wages due for labor the claimant need file only an affidavit
31 giving the amount due, between what dates the labor was
32 performed and the kind of labor performed, and the court shall
33 direct the amount due for wages as therein specified to be paid
34 within a short day to be fixed by the court, unless within 10
35 days after the filing of the claim the amount claimed is

 

 

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1 contested by the owner or some other party to the suit. The
2 party making such contest shall file an affidavit which shall
3 state his defense to the allowance of the claim, and the court
4 shall proceed at once to hear the evidence, and determine the
5 merits of the claim, and in the event the allowance for wages
6 is not paid within the time fixed by the court, the court shall
7 order the premises sold to pay the amount in such manner as it
8 directs.
9 (Source: P.A. 79-1358.)
 
10     (770 ILCS 60/21)  (from Ch. 82, par. 21)
11     Sec. 21. Sub-contractor defined; lien of sub-contractor;
12 notice; size of type; service of notice; amount of lien;
13 default by contractor.
14     (a) Subject to the provisions of Section 5, every mechanic,
15 worker or other person who shall furnish any labor, services,
16 material, fixtures materials, apparatus or , machinery, forms
17 or form work or fixtures, or furnish or perform services or
18 labor for the contractor, or shall furnish any material to be
19 employed in the process of construction as a means for
20 assisting in the erection of the building or improvement in
21 what is commonly termed form or form work where concrete,
22 cement or like material is used in whole or in part, shall be
23 known under this Act as a sub-contractor, and shall have a lien
24 for the value thereof, with interest on such amount from the
25 date the same is due, from the same time, on the same property
26 as provided for the contractor, and, also, as against the
27 creditors and assignees, and personal and legal
28 representatives of the contractor, on the material, fixtures,
29 apparatus or machinery furnished, and on the moneys or other
30 considerations due or to become due from the owner under the
31 original contract.
32     (b) If the legal effect of any contract between the owner
33 and contractor is that no lien or claim may be filed or
34 maintained by any one and the waiver is not prohibited by this
35 Act, or that such contractor's lien shall be subordinated to

 

 

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1 the interests of any other party, such provision shall be
2 binding; but the only admissible evidence thereof as against a
3 subcontractor sub-contractor or material supplier man, shall
4 be proof of actual notice thereof to him or her before his or
5 her contract is entered into. Such waiver or subordination
6 provision shall not be binding on the subcontractor unless set
7 forth in its entirety in writing in the contract between the
8 contractor and subcontractor or material supplier. before any
9 labor or material is furnished by him; or proof that a duly
10 written and signed stipulation or agreement to that effect has
11 been filed in the office of the recorder of the county or
12 counties where the house, building or other improvement is
13 situated, prior to the commencement of the work upon such
14 house, building or other improvement, or within 10 days after
15 the execution of the principal contract or not less than 10
16 days prior to the contract of the sub-contractor or material
17 man. The recorder shall record the same at length in the order
18 of time of its reception in books provided by him for that
19 purpose, and the recorder shall index the same, in the name of
20 the contractor and in the name of the owner, in books kept for
21 that purpose, and also in the tract or abstract book of the
22 tract, lot, or parcel of land, upon which the house, building
23 or other improvement is located, and the recorder shall receive
24 therefor a fee, such as is provided for the recording of
25 instruments in his office.
26     (c) It shall be the duty of each subcontractor who has
27 furnished, or is furnishing, materials or labor, services,
28 material, fixtures, apparatus or machinery, forms or form work
29 for an existing owner-occupied single family residence, in
30 order to preserve his lien, to notify the occupant either
31 personally or by certified mail, return receipt requested,
32 addressed to the occupant or his agent of the residence within
33 60 days from his first furnishing materials or labor, services,
34 material, fixtures, apparatus or machinery, forms or form work,
35 that he is supplying labor, services, material, fixtures,
36 apparatus or machinery, forms or form work materials or labor;

 

 

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1 provided, however, that any notice given after 60 days by the
2 subcontractor shall preserve his lien, but only to the extent
3 that the owner has not been prejudiced by payments made prior
4 to receipt of the notice. The notification shall include a
5 warning to the owner that before any payment is made to the
6 contractor, the owner should receive a waiver of lien executed
7 by each subcontractor who has furnished materials or labor,
8 services, material, fixtures, apparatus or machinery, forms or
9 form work.
10     The notice shall contain the name and address of the
11 subcontractor or material man, the date he started to work or
12 to deliver materials, the type of work done and to be done or
13 the type of materials delivered and to be delivered, and the
14 name of the contractor requesting the work. The notice shall
15 also contain the following warning:
16
"NOTICE TO OWNER
17     The subcontractor providing this notice has performed work
18 for or delivered material to your home improvement contractor.
19 These services or materials are being used in the improvements
20 to your residence and entitle the subcontractor to file a lien
21 against your residence if the services or materials are not
22 paid for by your home improvement contractor. A lien waiver
23 will be provided to your contractor when the subcontractor is
24 paid, and you are urged to request this waiver from your
25 contractor when paying for your home improvements."
26     Such warning shall be in at least 10 point bold face type.
27 For purposes of this Section, notice by certified mail is
28 considered served at the time of its mailing.
29     (d) In no case, except as hereinafter provided, shall the
30 owner be compelled to pay a greater sum for or on account of
31 the completion of such house, building or other improvement
32 than the price or sum stipulated in said original contract or
33 agreement, unless payment be made to the contractor or to his
34 order, in violation of the rights and interests of the persons
35 intended to be benefited by this act: Provided, if it shall
36 appear to the court that the owner and contractor fraudulently,

 

 

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1 and for the purpose of defrauding sub-contractors fixed an
2 unreasonably low price in their original contract for the
3 erection or repairing of such house, building or other
4 improvement, then the court shall ascertain how much of a
5 difference exists between a fair price for labor, services, and
6 material, fixtures, apparatus or machinery, forms or form work
7 used in said house, building or other improvement, and the sum
8 named in said original contract, and said difference shall be
9 considered a part of the contract and be subject to a lien. But
10 where the contractor's statement, made as provided in Section
11 5, shows the amount to be paid to the sub-contractor, or party
12 furnishing material, or the sub-contractor's statement, made
13 pursuant to Section 22, shows the amount to become due for
14 material; or notice is given to the owner, as provided in
15 Sections 24 and 25, and thereafter such sub-contract shall be
16 performed, or material to the value of the amount named in such
17 statements or notice, shall be prepared for use and delivery,
18 or delivered without written protest on the part of the owner
19 previous to such performance or delivery, or preparation for
20 delivery, then, and in any of such cases, such sub-contractor
21 or party furnishing or preparing material, regardless of the
22 price named in the original contract, shall have a lien
23 therefor to the extent of the amount named in such statements
24 or notice. In case of default or abandonment by the contractor,
25 the sub-contractor or party furnishing material, shall have and
26 may enforce his lien to the same extent and in the same manner
27 that the contractor may under conditions that arise as provided
28 for in Section 4 of this Act, and shall have and may exercise
29 the same rights as are therein provided for the contractor.
30     (e) Any provision in a contract, agreement, or
31 understanding, when payment from a contractor to a
32 subcontractor or supplier is conditioned upon receipt of the
33 payment from any other party including a private or public
34 owner, shall not be a defense by the party responsible for
35 payment to a claim brought under Section 21, 22, 23, or 28 of
36 this Act against the party. For the purpose of this Section,

 

 

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1 "contractor" also includes subcontractor or supplier. The
2 provisions of Public Act 87-1180 shall be construed as
3 declarative of existing law and not as a new enactment.
4 (Source: P.A. 87-361; 87-362; 87-895; 87-1180; 88-45.)
 
5     (770 ILCS 60/21.01)  (from Ch. 82, par. 21.01)
6     Sec. 21.01. Failure of contractor to pay sub-contractor;
7 fraud; penalty. Any contractor, or if the contractor is a
8 corporation any officer or employee thereof, who with intent to
9 defraud induces a subcontractor, as defined in Section 21, to
10 execute and deliver a waiver of lien for the purpose of
11 enabling the contractor to obtain final payment under his
12 contract and upon the representation that the contractor will,
13 from such final payment, pay the subcontractor the amount due
14 the subcontractor, and who willfully fails to pay the
15 subcontractor in full within 30 days after such final payment
16 shall be guilty of a Class A misdemeanor.
17 (Source: P.A. 77-2705.)
 
18     (770 ILCS 60/21.02)
19     Sec. 21.02. Construction Trust Funds. trust funds.
20     (a) Money held in trust; trustees. Any owner, contractor,
21 subcontractor, or supplier of any tier who requests or requires
22 the execution and delivery of a waiver of mechanics lien by any
23 person who furnishes labor, services, material, fixtures,
24 apparatus or machinery, forms or form work or materials for the
25 improvement of a lot or a tract of land in exchange for payment
26 or the promise of payment, shall hold in trust the sums
27 received by such person as the result of unpaid sums subject to
28 the waiver of mechanics lien, as trustee for the person who
29 furnished the labor, services, material, fixtures, apparatus
30 or machinery, forms or form work or the person otherwise
31 entitled to payment in exchange for such waiver. or materials.
32     (b) How trust moneys held; commingling. Nothing contained
33 in this Section shall be construed as requiring moneys held in
34 trust by an owner, contractor, subcontractor, or material

 

 

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1 supplier under this Section to be placed in a separate account.
2 If an owner, contractor, subcontractor, or material supplier
3 commingles moneys held in trust under this Section with other
4 moneys, the mere commingling of the moneys does not constitute
5 a violation of this Section.
6     (c) Violation of this Section. Any owner, contractor,
7 subcontractor, or material supplier who knowingly retains or
8 used uses the moneys held in trust under this Section or any
9 part thereof, for any purpose other than to pay those persons
10 for whom the moneys are held in trust, shall be liable to any
11 person who successfully enforces his or her rights under this
12 Section for all damages sustained by that person.
13 (Source: P.A. 90-208, eff. 7-25-97.)
 
14     (770 ILCS 60/22)  (from Ch. 82, par. 22)
15     Sec. 22. Partners or joint contractors; sub-letting of
16 contract; statement by sub-contractor; failure to provide;
17 penalty. Whenever, after a contract has been made, the
18 contractor shall associate one or more persons as partners or
19 joint contractors, in carrying out the same, or any part
20 thereof, the lien for materials or labor, services, material,
21 fixtures, apparatus or machinery, forms or form work furnished
22 by a sub-contractor to such contractor and his partners or
23 associates, as originally agreed upon, shall continue the same
24 as if the sub-contract had been made with all of said partners.
25 When the contractor shall sub-let his contract or a specific
26 portion thereof to a sub-contractor, the party furnishing
27 material to or performing labor, services, material, fixtures,
28 apparatus or machinery, forms or form work for such
29 sub-contractor shall have a lien therefor; and may enforce his
30 lien in the same manner as is herein provided for the
31 enforcement of liens by sub-contractors. Any sub-contractor
32 shall, as often as requested in writing by the owner, or
33 contractor, or the agent of either, make out and give to such
34 owner, contractor or agent, a statement of the persons
35 furnishing labor, services, material, fixtures, apparatus or

 

 

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1 machinery, forms or form work material and labor, giving their
2 names and how much, if anything, is due or to become due to
3 each of them, and which statement shall be made under oath if
4 required. If any sub-contractor shall fail to furnish such
5 statement within 5 days after such demand, he shall forfeit to
6 such owner or contractor the sum of $50 for every offense,
7 which may be recovered in a civil action and shall have no
8 right of action against either owner or contractor until he
9 shall furnish such statement, and the lien of such
10 sub-contractor shall be subject to the liens of all other
11 creditors.
12 (Source: P.A. 76-1381.)
 
13     (770 ILCS 60/24)  (from Ch. 82, par. 24)
14     Sec. 24. Written notice by sub-contractor; service; when
15 notice not necessary; form of notice.
16     (a) Sub-contractors, or parties party furnishing labor, or
17 materials, fixtures, apparatus, machinery, or services, may at
18 any time after making his or her contract with the contractor,
19 and shall within 90 days after the completion thereof, or, if
20 extra or additional work or material is delivered thereafter,
21 within 90 days after the date of completion of such extra or
22 additional work or final delivery of such extra or additional
23 material, cause a written notice of his or her claim and the
24 amount due or to become due thereunder, to be sent by
25 registered or certified mail, with return receipt requested,
26 and delivery limited to addressee only, to or personally served
27 on the owner of record or his agent or architect, or the
28 superintendent having charge of the building or improvement and
29 to the lending agency, if known; however, if the lot or lots
30 and tract or tracts of land in question are registered under
31 the provisions of "An Act concerning land titles", approved May
32 1, 1897, as amended, the notice shall not be served as above
33 stated, but shall be filed in the office of the registrar of
34 titles of the county in which such lot or lots and tract or
35 tracts of land are situated, and such notice shall not be

 

 

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1 necessary when the sworn statement of the contractor or
2 subcontractor provided for herein shall serve to give the owner
3 notice of the amount due and to whom due, but where such
4 statement is incorrect as to the amount, the subcontractor or
5 material man named shall be protected to the extent of the
6 amount named therein as due or to become due to him or her. For
7 purposes of this Section, notice by registered or certified
8 mail is considered served at the time of its mailing.
9     The form of such notice may be as follows: To (name of
10 owner): You are hereby notified that I have been employed by
11 (the name of contractor) to (state here what was the contract
12 or what was done, or to be done, or what the claim is for) under
13 his or her contract with you, on your property at (here give
14 substantial description of the property) and that there was due
15 to me, or is to become due (as the case may be) therefor, the
16 sum of $.....
17     Dated at .... this .... day of ....., .....
18
(Signature).....
19     (b) The serving of notice pursuant to subsection (a) of
20 this Section shall not constitute an admission by the lien
21 claimant that its status is that of subcontractor if it is
22 later determined that the party with whom the lien claimant
23 contracted was the owner or an agent of the owner.
24 (Source: P.A. 84-551.)
 
25     (770 ILCS 60/25)  (from Ch. 82, par. 25)
26     Sec. 25. Notice to persons not found or not residing in
27 county.
28     (a) In all cases where the owner of record, his or her
29 agent, architect, or superintendent or lending agency, if
30 known, cannot, upon reasonable diligence, be found in the
31 county in which said improvement is made, or shall not reside
32 therein, the sub-contractor or person furnishing labor,
33 services, material materials, fixtures, apparatus or ,
34 machinery, forms labor or form work services may give notice to
35 such persons who cannot be found by filing within 90 days after

 

 

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1 the completion of his or her contract with the contractor, or
2 if extra or additional work or material is delivered
3 thereafter, within 90 days after the date of completion of such
4 extra or additional work or final delivery of such extra or
5 additional material, by filing in the office of the recorder
6 against the person making the contract and the owner a claim
7 for lien verified by the affidavit of himself or herself, or
8 his or her , agent or employee, which shall consist of a brief
9 statement of his or her contract or demand, and the balance due
10 after allowing all credits, and a sufficient correct
11 description of the lot, lots or tract of land to identify the
12 same. An itemized account shall not be necessary.
13     (b) The notice recorded pursuant to subsection (a) of this
14 Section shall satisfy the notice requirements of Section 24 of
15 this Act only as to any owner of record, his or her agent,
16 architect, superintendent, or lending agency, if known, who or
17 which cannot, upon reasonable diligence, be found or shall not
18 reside in the county in which said improvement is made. In the
19 event that notice is recorded as provided herein, if such
20 notice complies with Section 7 of this Act it shall also be
21 deemed a claim for lien recorded pursuant to Section 7 of this
22 Act.
23     (c) The recording of notice pursuant to subsection (a) of
24 this Section shall not constitute an admission by the lien
25 claimant that its status is that of subcontractor if it is
26 later determined that the party with whom the lien claimant
27 contracted was the owner or an agent of the owner.
28 (Source: P.A. 83-358.)
 
29     (770 ILCS 60/26)  (from Ch. 82, par. 26)
30     Sec. 26. Claim for wages as laborer preferred. The claim of
31 any person for wages as a laborer under Sections section
32 fifteen, 21 twenty-one and 22 twenty-two of this Act shall be a
33 preferred lien.
34 (Source: Laws 1903, p. 230.)
 

 

 

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1     (770 ILCS 60/28)  (from Ch. 82, par. 28)
2     Sec. 28. Suits by laborers, materialmen or
3 sub-contractors. If any money due to the laborers, materialmen,
4 or sub-contractors be not paid within 10 days after his notice
5 is served as provided in sections 5, 24, and 25, and 27, then
6 such person may either file a claim for lien or file a
7 complaint and enforce such lien within the same limits as to
8 time and in such other manner as hereinbefore provided for the
9 contractor in section 7 and sections 9 to 20 inclusive, of this
10 Act, or he may sue the owner and contractor jointly for the
11 amount due in the circuit court, and a personal judgment may be
12 rendered therein, as in other cases. In such actions, as in
13 suits to enforce the lien, the owner shall be liable to the
14 plaintiff for no more than the pro rata share that such person
15 would be entitled to with other sub-contractors out of the
16 funds due to the contractor from the owner or one knowingly
17 permitted by the owner to under the contract for such
18 improvements and the contractor between them, except as
19 hereinbefore provided for laborers and materialmen, and such
20 action shall be maintained against the owner only in case the
21 plaintiff establishes a right to the lien. All suits and
22 actions by sub-contractors shall be against both contractor and
23 owner jointly, and no judgment shall be rendered therein until
24 both are duly brought before the court by process or
25 publication, and such process may be served and publication
26 made as to all persons except the owners as in other civil
27 actions. All such judgments, where the lien is established
28 shall be against both jointly, but shall be enforced against
29 the owner only to the extent that he is liable under his
30 contract as by this Act provided, and shall recite the date
31 from which the lien thereof attached according to the
32 provisions of Sections 1 to 20 of this Act; but this shall not
33 preclude a judgment against the contractor, personally, where
34 the lien is defeated.
35 (Source: P.A. 79-1358.)
 

 

 

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1     (770 ILCS 60/30)  (from Ch. 82, par. 30)
2     Sec. 30. Multiple liens; insufficient funds; hearing;
3 judgment. If there are several liens under sections 21 and 22
4 of this Act upon the same premises, and the owner or any person
5 having such a lien shall fear that there is not a sufficient
6 amount coming to the contractor to pay all such liens, the such
7 owner or any one or more persons having such lien may file his,
8 her or their complaint in the circuit court of the proper
9 county, stating such fact and such other facts as may be
10 sufficient to a full understanding of the rights of the
11 parties. The contractor and all persons having liens upon or
12 who are interested in the premises, so far as the same are
13 known to or can be ascertained by the plaintiff, upon diligent
14 inquiry shall be made parties. Upon the hearing the court shall
15 find the amount due from the owner to the contractor, and the
16 amount due to each of the persons having liens, and in case the
17 amount found to be due to the contractor shall be insufficient
18 to discharge all the liens in full, the amount so found in
19 favor of the contractor shall be divided between the persons
20 entitled to such liens pro rata after the payment of all claims
21 for wages in proportion to the amounts so found to be due them
22 respectively. If the amount so found to be due to the
23 contractor shall be sufficient to pay the liens in full, the
24 same shall be so ordered. The premises may be sold as in other
25 cases under this Act. The parties to such action shall
26 prosecute the same under like requirements as are directed in
27 section 11 of this Act, and all persons who shall be duly
28 notified of such proceedings, and who shall fail to prove their
29 claims, whether the same be in judgment against the owner or
30 not, shall forever lose the benefit of and be precluded from
31 their liens and all claims against the owner. Upon the filing
32 of such complaint the court may, on the motion of any person
33 interested, and shall, upon final judgment stay further
34 proceedings upon any action against the owner on account of
35 such liens, and costs in such cases shall be adjusted as
36 provided for in section 17 of this Act.

 

 

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1 (Source: P.A. 81-251.)
 
2     (770 ILCS 60/32)  (from Ch. 82, par. 32)
3     Sec. 32. Payments to contractor by owner. No payments to
4 the contractor or to his order of any money or other
5 considerations due or to become due to the contractor shall be
6 regarded as rightfully made, as against the sub-contractor,
7 laborer, or party furnishing labor, services, material,
8 fixtures, apparatus or machinery, forms or form work or
9 materials, if made by the owner without exercising and
10 enforcing the rights and powers conferred upon him in Sections
11 5, 21 and 22 of this Act.
12 (Source: P.A. 80-1333.)
 
13     (770 ILCS 60/35)  (from Ch. 82, par. 35)
14     Sec. 35. Satisfaction or release; recording; neglect;
15 penalty. Whenever a claim for lien has been filed with the
16 recorder or the Registrar of deeds Titles, either by the
17 contractor or sub-contractor, and is paid before October 1,
18 1973, with cost of filing same, or where there is a failure to
19 institute suit to enforce the same after demand, as provided in
20 the preceding section, within the time by this Act limited, the
21 person filing the same or some one by him duly authorized in
22 writing so to do, shall acknowledge satisfaction or release
23 thereof, in writing, on written demand of the owner, lienor, or
24 any person interested in the real estate, or his or her agent
25 or attorney, and on neglect to do so for 10 days after such
26 written demand he or she shall be liable to the owner for the
27 sum of $2,500, $25, which may be recovered in a civil action
28 together with the costs and the reasonable attorney's fees of
29 the owner, lienor, or other person interested in the real
30 estate, or his or her agent or attorney incurred in bringing
31 such action.
32     (b) Such a satisfaction or release of lien may be filed
33 with the recorder or Registrar of deeds Titles in whose office
34 the claim for lien had been filed and when so filed shall

 

 

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1 forever thereafter discharge and release the claim for lien and
2 shall bar all actions brought or to be brought thereupon.
3     (c) Whenever a claim for lien has been filed with the
4 recorder or the Registrar of Titles, either by the contractor
5 or sub-contractor, and is paid after October 1, 1973 with cost
6 of filing such claim for lien, the person filing the claim or
7 someone by him duly authorized in writing so to do shall, upon
8 receipt of the satisfaction of such claim deliver a release of
9 lien in writing to the owner within 30 days after receipt of
10 payment or shall be liable to the owner for the sum of $100
11 which may be recovered in a civil action. The release of lien
12 shall have the following imprinted thereon in bold letters at
13 least 1/4 inch in height: "FOR THE PROTECTION OF THE OWNER,
14 THIS RELEASE SHOULD BE FILED WITH THE RECORDER OR THE REGISTRAR
15 OF TITLES IN WHOSE OFFICE THE CLAIM FOR LIEN WAS FILED." The
16 Recorder or the Registrar of Titles in whose office the claim
17 for lien had been filed, upon receipt of a release and the
18 payment of the recording or registration fee, shall record or
19 register the release.
20 (Source: P.A. 83-358.)
 
21     (770 ILCS 60/1.1 rep.)  (from Ch. 82, par. 1.1)
22     Section 10. The Mechanics Lien Act is amended by repealing
23 Section 1.1.