Cleveland Wrecking Co. v. Central National Bank

576 N.E.2d 1055, 216 Ill. App. 3d 279, 160 Ill. Dec. 101, 1991 Ill. App. LEXIS 1138
CourtAppellate Court of Illinois
DecidedJune 28, 1991
Docket1—88—0826,1—88—1281 cons.
StatusPublished
Cited by27 cases

This text of 576 N.E.2d 1055 (Cleveland Wrecking Co. v. Central National Bank) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cleveland Wrecking Co. v. Central National Bank, 576 N.E.2d 1055, 216 Ill. App. 3d 279, 160 Ill. Dec. 101, 1991 Ill. App. LEXIS 1138 (Ill. Ct. App. 1991).

Opinion

JUSTICE McNULTY

delivered the opinion of the court:

On January 20, 1981, a contract was finalized between Cleveland Wrecking Company (Cleveland) and Contractors and Engineers, Inc. (C&E), in which Cleveland agreed to perform demolition and strip-out work on the Sheridan Plaza Apartments (Sheridan Plaza). While the contract identified the owner of the Sheridan Plaza project as the Egidi Group, title to the real property was in the name of Central National Bank, with beneficial ownership in Sheridan Plaza Associates, a limited partnership whose general partners were Mario, Robert, Kenneth and Dennis Egidi. All of the Egidis were also officers of C&E.

Sheridan Plaza, the subject of the demolition contract, was a 12-story building formerly used as a hotel. Its physical configuration was in the shape of a “U” with the opening facing south. Within the opening of the U-shaped area was a 21/2-story lobby. Connected to the east side of the main structure was a B^-story ballroom running north about two-thirds of the length of the main structure. The exterior walls of the southern facades of the lobby and ballroom were covered by terra cotta tiles. Extending out from the northeast one-third of the main building, and to the north of the ballroom, was a 12-story wing, topped by 13th- and 14th-floor penthouses.

The contract for demolition work called for: strip-out and demolition of the 12-story wing and the 13th- and 14th-floor penthouses; removal of the roof over the lobby of the main .building; and demolition of the entire 21/2-story ballroom, including the front wall and terra cotta facade. The strip-out and demolition work was preparatory to the owners’ plans to completely renovate and rehabilitate the remaining structure and to build a new structure in the former location of the ballroom and multistory wing.

While the contract specified no completion date, it indicated “time is of the essence.” The parties agreed when the contract was entered into that Cleveland’s work should be completed in mid-June 1981. However, delays pushed Cleveland’s demolition into July of 1981, when a general strike of operating engineers in the Chicago area caused it to halt all activity on the project. That strike ran until mid-September of 1981, at which time Cleveland was able to resume operations. Cleveland completed its job and left the Sheridan Plaza project on December 11, 1981.

In February of 1982, Cleveland filed a lien claim with the recorder of deeds against both C&E and the Egidi Group’s interests in the Sheridan Plaza building property. Cleveland later filed a complaint to foreclose the mechanic’s lien and for other relief against C&E, the Egidi Group, Mario, Kenneth, Dennis and Robert Egidi individually, the Sheridan Plaza Associates, and other defendants associated with the project or who claimed to have an interest in the property.

On January 15, 1988, following a four-week bench trial, the trial court found that Cleveland had perfected its lien rights on the Sheridan Plaza property and was entitled to a mechanic’s lien in the amount of $354,411.48 (which constituted damages flowing from C&E’s delays on the job as well as extras and the unpaid balance due Cleveland under the original contract), plus 5% annually. It further ordered that Cleveland was entitled to a judgment in the same amount under count II of its amended complaint (the breach of contract count), plus costs.

On February 4, 1988, the court entered a judgment of foreclosure and sale specifically adopting the findings of fact of the January 15 opinion and order. The court’s judgment order found C&E alone indebted to Cleveland in the amount of $460,007.67, representing a principal balance of $354,441.48 and interest at the rate of 5% per annum beginning January 11, 1982. The court also found in favor of Cleveland on the defendant’s counterclaim for damages. It further denied Cleveland’s subsequent motion for entry of judgment as against all additional named defendants.

C&E appeals from the February 4, 1988, judgment of foreclosure and sale and from the denial of its counterclaim against Cleveland. C&E also appeals the trial court’s denial of its motion to dismiss count I of Cleveland’s complaint. Cleveland appeals the denial of its post-trial motion to include all additional named defendants in the entry of judgment.

Opinion

I

In its appeal of the judgment of foreclosure and sale, C&E argues among other matters that Cleveland’s demolition work did not constitute a lienable activity under the Illinois Mechanics’ Liens Act (Ill. Rev. Stat. 1981, ch. 82, par. 1 et seq.). Cleveland contends that this issue has not been preserved for review, and that even if it has, case law and a liberal construction of the statute require this court to affirm the trial court’s finding that Cleveland’s work was lienable activity under the Mechanics’ Liens Act.

Cleveland asserts that C&E has not preserved its lienability claim for review based on the following procedural history: On August 9, 1982, C&E filed a motion to strike count I of Cleveland’s original complaint, arguing not only that Cleveland’s lien claim failed to meet the requirements of section 1 of the Mechanics’ Liens Act, but also that the claim for extras was substantially deficient as it failed to allege that such extras were ordered or approved by defendants. On October 19, 1982, the trial court denied the defendants’ motion to dismiss, though giving Cleveland leave to file an amended complaint. Cleveland filed an amended complaint, curing only the defects as to the extras issue. C&E answered, but never renewed its motion to strike. Cleveland therefore asserts that any objection to the denial of the motion to strike is waived on appeal.

In support of this argument, Cleveland cites Decatur Memorial Hospital v. West Lincoln Township (1976), 38 Ill. App. 3d 356, 347 N.E.2d 804. In Decatur, plaintiff filed an original and an amended complaint. The amended complaint cured the defect contained in the original. Defendant then appealed its motion to strike the original pleading. The reviewing court found that the issue raised by defendant was not properly before the court, as the pleading against which the motion to dismiss was directed had been superseded by amendment. The original motion to dismiss could not therefore be used to test the subsequent pleading; it was only valid as to the original. Decatur, 38 Ill. App. 3d 356, 347 N.E.2d 804.

The case at bar, like Decatur, contains a complaint, an amended complaint, a motion to strike the original complaint, and an appeal of the denial of the motion to strike. There the similarity ends. While the appealed motion to strike in Decatur involved a defect which had been subsequently cured, the present appeal does not. In the case at bar, the amended complaint did not revise or “cure” the original as to the grounds alleged in the motion to strike (the lienability of demolition work). Rather it cured the original as to its demand for extras.

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Cite This Page — Counsel Stack

Bluebook (online)
576 N.E.2d 1055, 216 Ill. App. 3d 279, 160 Ill. Dec. 101, 1991 Ill. App. LEXIS 1138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cleveland-wrecking-co-v-central-national-bank-illappct-1991.