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Mechanics Lien issued wrongfully to Customer

IllinoisMechanics Lien

CNN Construction in Hillside IL just issued use a mechanics lien for $6k non-payment for a roof service. They completed the work in May. Insurance paid for the estimate in the amount of $8500. They received payment before the work started. We waited a week and work finally was done. Then we get an invoice in August stating the work was around $14000 and that they added some upgrades. We were never informed of these "upgrades" and in fact the upgrades were not done (ie new gutters which they added $3k for). We reached out to our insurance to see if they notified them of any adjustments to the estimate and they we not aware nor were they contacted. The claimed the work was completed in August but it was not. It was completed in May. They sent threating emails and called unlisted and left nasty phone messages saying they would issue a lien if we didn't set up a payment plan. I'd like to know what I can do to get out of this nightmare with them. Thank you.

4 replies

Sep 8, 2021
Have a lawyer send them a demand to sue under the statute.
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Sep 8, 2021

NOTE: the title of your post identifies you as a Contractor, if that is correct, then you are asking about the actions of a Subcontractor. If you are the Owner of the subject property, then CNN is a GC, which would change the analysis.

A sub must meet strict timing requirements in order to preserve its Mechanics Lien rights. In addition, a Mechanics Lien must arise from a valid contract and the liening party must swear to the Lien's authenticity. Here, it appears that there was bad faith billing and surprise charges. In other words: there does not appears to have been a meeting of the mninds to serve as the basis for a Mechanics Lien. You may challenge the Subcontractor in this matter to foreclose its lien (i.e. bring suit) or lose it. Finally, you may simply negotiate a reduced payout - although it sounds as if this Subcontractor is not entitled to any more.

I hope this information was helpful. Best of luck.

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Sep 9, 2021

Based upon your description, a lien has not been recorded. Given the conduct of the contractor as you have described, it would be best for you to consult with a lawyer, so the contract can be reviewed, as well as any written communications regarding the agreed scope of work. The lawyer can then draft the appropriate correspondence to the contractor and in the best case scenario the contractor will not pursue any further action. If the contractor does record a lien then I would agree with Mr. Udell that then it would be appropriate to serve a formal Section 34 demand which would require the contractor to file suit within 30 days of the demand.

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Sep 13, 2021
If you had a written contract, it likely said that the work would be done for the amount the insurance company appraised and paid for the loss plus your deductible. If you have no change orders or other documents regarding the supposed extra work, that is good evidence that you did not agree to it.
 
Take photos of what the contractor claims to performed additional work on. I trust these areas will not look new.
 
But your immediate problem is the lien. You can wait 2 years and hope it does not sue you to foreclose. After 2 years the lien is unenforceable.
 
You can demand that it file suit in 30 days. If done correctly and according to statute and CNN does not file suit within 30 days of receipt, the lien is unenforceable and you can demand that it be released.
 
You can also offer to pay the contractor something to release the lien.
 
You can report the contractor to the attorney general consumer fraud division.
 
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