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Proper Filing of a Mechanics Lein

This project was very complex with a lot of moving parts, different floors different change orders etc. I entered this in with 3 different projects. One I have the proper paperwork (signed contract) etc the other 2 are a combo of contracts AIA and retention that wasn't invoiced yet. When I entered them in I entered what was left in total. Is this the correct way? Please advise.

1 reply

Aug 4, 2020

Let's look at two separate issues: (1) Are multiple mechanics liens required when work is done under separate agreements? and (2) What amounts can be liened? If you're inquiring about how to enter certain information into Levelset's platform - unfortunately, I'm not able to help you with that here at the Expert Center. Though, your account manager may be able to provide some guidance, to a limited degree.

Filing a lien when working under multiple agreements

First and foremost - the safest way to proceed would be to file separate liens for work done under separate agreements. While it's possible that one lien claim might cover multiple agreements, there's no doubt that filing a lien based on a specific agreement would be a successful way of going about it. Certainly, other variables might create issues - but filing a separate lien for each separate agreement should be a sound way for proceeding. Looking at Illinois' lien statute - there may be more hope that one lien could be filed for multiple contracts. First, § 60/1 of Illinois' lien statute notes that a person providing work under "any contract or contracts" is entitled to "a lien" against the property they've improved. Because that section notes that work might be done under multiple contracts, and because it simply references one lien claim, it's certainly plausible that one lien might be filed for the work done under multiple agreements. There are other sections that also refer to the potential presence of multiple contracts for one claimant. What's more, that section also states that the contracts can be "express or implied, or partly expressed or implied" - meaning that the agreements can be in writing, verbal, or more of an unspoken understanding between the parties. It's natural that claimants may want to consolidate things. However, keep in mind that there's some reason for caution as described in this Floida-based article: Can You File One Lien While Working Under Multiple Contracts? Still - every state's lien laws are different, and what happens in Florida may or may not be worth considering when pursuing claims in Illinois.

What amounts can be liened in Illinois?

If separate liens will be pursued, then each lien should only amount to the value of the work done under that agreement - and the total value of all liens shouldn't exceed what you're owed altogether. If one lien is pursued, then the total value shouldn't exceed what you're owed under all agreements. Note also that Illinois tends to be a bit lenient about the amount on mechanics liens. Under § 60/7(a), a lien won't be tossed aside due to an overcharge "unless it shall be shown that such error or overcharge is made with intent to defraud..."

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