CB Construction & Design, LLC v. Atlas Brookview, LLC

2021 IL App (1st) 200924
Appellate Court of Illinois·Decided March 26, 2021·No. 1-20-0924·Published·Cited by 3 cases

Opinion

2021 IL App (1st) 200924

FIRST DISTRICT SIXTH DIVISION March 26, 2021

No. 1-20-0924

CB CONSTRUCTION & DESIGN, LLC, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County. ) v. ) ) ATLAS BROOKVIEW, LLC; STEVEN ) IVANCOVICH, CEO of Atlas Brookview, LLC; ) No. 19 L 8868 RAVI MALLI, Director of Asset Management; ) ATLAS APARTMENT HOMES; and OTHER ) DEFENDANTS YET TO BE DETERMINED, ) ) Defendants ) Honorable ) Diane M. Shelley, (Atlas Brookview, LLC, Defendant-Appellee). ) Judge Presiding.

JUSTICE HARRIS delivered the judgment of the court, with opinion. Justices Connors and Oden Johnson concurred with the judgment and opinion.

OPINION

¶1 Plaintiff, CB Construction & Design, LLC (CB), appeals the circuit court order granting

defendant Atlas Brookview, LLC.’s motion to dismiss CB’s mechanics lien claim. On appeal, CB

contends that the court erred in dismissing its claim where (1) the parties not made defendants in

CB’s complaint were not necessary parties under section 11 of the Mechanics Lien Act (Act) (770

ILCS 60/11 (West 2018)) and (2) pursuant to section 9 of the Act, CB had until two years from

completion of the contract to amend its complaint to add necessary parties. For the following

reasons, we affirm. No. 1-20-0924

¶2 I. JURISDICTION

¶3 The trial court denied CB’s motion to reconsider on July 24, 2020. On August 14, 2020,

the court entered an order pursuant to Illinois Supreme Court Rule 304(a) (eff. Mar. 8, 2016) that

there is no just reason for delaying enforcement or appeal. Plaintiff filed a notice of appeal on

August 21, 2020. Accordingly, this court has jurisdiction pursuant to Rule 304(a) governing

appeals from final judgments that do not dispose of the entire proceeding.

¶4 II. BACKGROUND

¶5 On September 20, 2017, Atlas Brookview, LLC (Atlas) purchased property commonly

known as 4200 through 4400 W. Lake Avenue in Glenview, Illinois (Glenview property). To fund

its purchase, Atlas received a loan from TPG RE Finance 2 Ltd. (TPG), and TPG recorded the

mortgage on September 21, 2017. Wells Fargo Bank, NA (Wells Fargo) held a security interest in

the leases and rents from the Glenview property. Wells Fargo recorded its security interest on

February 23, 2018. On December 17, 2020, TPG assigned the note and mortgage to DB

Brookview.

¶6 On January 4, 2018, CB and Atlas entered into a construction contract to renovate the units

and common areas of the Glenview property. The contract totaled $9,926,633, and the scheduled

substantial completion date was June 30, 2020. CB claimed that it completed its work on May 16,

2019, but Atlas still owed $1,439,531.08 under the contract.

¶7 On May 20, 2019, CB filed a mechanics lien pursuant to the Act which named as

responsible parties and owners Steven Ivankovich (CEO of Atlas), Lee Ward (loan administrator),

and Ravi Malli (Director of Asset Management-Atlas Apartment Homes). On July 15, 2019, Atlas

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served CB with a section 34 (770 ILCS 60/34 (West 2018)) demand to file suit within 30 days. CB

filed a complaint for breach of contract and mechanics lien on August 12, 2019.

¶8 The complaint named as defendants Atlas, Ivankovich, Malli, and “Other defendants yet

to be determined.” CB alleged that it entered into a contract with defendants to provide services,

materials, and labor in the construction project for the Glenview properties. CB alleged that it

completed performance of the contract on May 16, 2019, and issued a bill for $1,439,531.08, which

has yet to be paid. After repeated requests for payment went unanswered, CB filed its mechanics

lien on May 20, 2019, but “there has been no resolution of the lien or payment of the balance

shown due and owing to the present date.” As a remedy, CB requested “an amount not less than

$1,439,531.08, for the “services, materials, and labor, duly provided in good faith on the reliance

of the parties [sic] contract by the plaintiff.”

¶9 Atlas filed motions to dismiss pursuant to sections 2-615 and 2-619 of the Code of Civil

Procedure (Code) (735 ILCS 5/2-615, 2-619 (West 2018)), alleging that CB failed to timely join

TPG and Wells Fargo as necessary parties, as well as other grounds. The trial court granted the

motion but gave CB an opportunity to amend its complaint. On October 29, 2019, CB filed its

amended complaint, which contained four counts: breach of contract (count I), perfection and

foreclosure of mechanics lien (count II), pierce the corporate veil (count III), and in the alternative,

unjust enrichment (count IV). In its mechanics lien count, CB requested that

“the sum of $1,439,531.08, together with attorney fees and interest, be ordered as a lien

against the real property, building[s], parcel[s], senior and superior to any claim of right,

title or interest in or to the real property of any Defendant, or other person or entity which

may be identified hereafter, AND that the real property be ordered sold by the Sheriff of

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COOK County, ILLINOIS, according to law, and that all proceeds of sale be applied to

PLAINTIFF’s good and meritorious claim.”

¶ 10 CB’s amended complaint did not name TPG or Wells Fargo as party defendants, but again

included “Other defendants yet to be determined.” Atlas moved to dismiss the complaint on

numerous grounds, including CB’s failure to add TPG and Wells Fargo as necessary parties. On

February 10, 2020, the trial court dismissed some of the claims without prejudice but dismissed

the mechanics lien claim with prejudice for failure to comply with the Act’s requirements. The

court granted CB leave to file a second amended complaint “consistent with the above rulings”

and ordered CB to release the mechanics lien.

¶ 11 On March 9, 2020, CB filed a motion to reconsider the dismissal of the mechanics lien

claim. Since CB had not released its lien, Atlas filed a motion for rule to show cause. On April 20,

2020, CB filed a motion for leave to file its second amended complaint.

¶ 12 On April 22, 2020, the trial court ruled on CB’s motion to reconsider and Atlas’s motion

for rule to show cause. The court noted that it had dismissed CB’s mechanics lien claim “[b]ecause

this right is statutory, [so] the steps necessary to invoke those rights must be strictly construed in

accordance with the statute.” The court did find that CB’s complaint satisfied the requirements of

section 11(a) of the Act. However, it affirmed the dismissal of the mechanics lien count because

CB failed to join TPG, as the mortgage lender, and Wells Fargo, as assignee of the rents from the

property, as defendants. The court found that TPG and Wells Fargo were necessary parties because

under the Act, “necessary parties” include “ ‘all persons who may have any valid claim to the

whole or any part of the premises upon which a lien may be attempted to be enforced under the

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provisions thereof, or who are interested in the subject matter of the suit.’ ” The court cited section

11(b) of the Act for this provision. See 770 ILCS 60/11(b) (West 2018).

¶ 13 Since CB failed to file an action against TPG and Wells Fargo as defendants within 30 days

of Atlas’s demand, the court determined that the Act barred CB from claiming any lien. Thus,

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