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how do i remove a lien or challenge a lien that i have bonded off?

Illinois

I am working on a project in Illinois. A sub made false change order claims after the job was done. he filed a lien for said claims. i bonded off the lien. what actions can i take to force action or have my bond returned to me?

2 replies

Apr 14, 2021

One option for Illinois property owners who believe a lien filing is frivolous or unwarranted is to serve the claimant a Notice to Commence Suit. Under 770 ILCS §60/34, an owner may send a demand to the lienholder requiring them to file an enforcement suit within 30 days o f receipt or the lien will be forfeited. This is essentially calling their bluff. 

The demand should be in writing, include all of the relevant lien filing information, and contain the following statment in 10pt bold font:

Failure to respond to this notice within 30 days after receipt, as reequired by Section 34 of the Mechanics Lien Act, shall result in the forfeiture of the referenced lien.

After which, there are two ways this can play out:

  1. They file suit within that time frame. Once the action is commenced, you can challenge the validity of the claim. If successful, and the court determines that the lawsuit was unwarranted, you may be awarded attorney fees and court costs
  2. They fail to file suit within that time frame. If the claimant fails to take action within 30 days after receipt of the notice, the claim will no longer be enforceable, but the claim will still be on the property title. To get this removed and the bond refunded, the next step would be to send the claimant a demand for release (under 770 ILCS §60/35) in the same manner as the previous notice. If the claim isn't released within 10 days, they will be liable for a penalty of $2,500 and any court costs or attorneys fees incurred in an action to have the claim removed.

Here are some additional resources you may find helpful:

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Apr 15, 2021
If it is a private project, you can force the sub to file suit to enforce the lien within 30 days or forfeit it. If suit is not filed within 30 days of proper service of the demand, the lien becomes unenforceable and you can demand that it be released. If it is not released within 20days, you can have it removed by the court, recover $2,500.00 in statutory damages and costs and attorney's fees.
 
Once you can establish the lien is unenforceable, you should be able to get back your collateral.
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