Crane Erectors & Riggers, Inc. v. La Salle National Bank

466 N.E.2d 397, 125 Ill. App. 3d 658, 80 Ill. Dec. 945, 1984 Ill. App. LEXIS 2039
CourtAppellate Court of Illinois
DecidedJuly 13, 1984
Docket2-83-0688
StatusPublished
Cited by11 cases

This text of 466 N.E.2d 397 (Crane Erectors & Riggers, Inc. v. La Salle 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
Crane Erectors & Riggers, Inc. v. La Salle National Bank, 466 N.E.2d 397, 125 Ill. App. 3d 658, 80 Ill. Dec. 945, 1984 Ill. App. LEXIS 2039 (Ill. Ct. App. 1984).

Opinion

PRESIDING JUSTICE SEIDENFELD

delivered the opinion of the court:

Crane Erectors and Riggers, Inc. (Crane), filed suit to enforce its claim for lien for the value of services performed in assembling, erecting and installing an overhead crane in a warehouse. As material here, the suit named as defendants Lefco, Inc., Leffingwell Steel Company, The Great West Life Assurance Company (Great West) and the La Salle National Bank, as trustee (La Salle). La Salle is named as the owner of the property and Great West is named as its successor in title. The trial court entered summary judgment for Crane, awarding a mechanics’ lien in the amount of $17,832.22. Great West appeals.

The facts are established by the pleadings, affidavits, answers to interrogatories and a deposition.

On October 26, 1981, Crane received a purchase order from Lefco accepting its proposal to provide:

“labor, tools and equipment to receive and unload from truck shipment and immediately install, mechanically and electrically, one (1), 25 ton capacity, cab operated 80’ 0” span, double girder, motor driven, top running P & H crane weighing approximately 100,300#.
* * *
Also included is the installation of 240’ of 3 conductor, enclosed figure-8-bar main line electrification system with bolted brackets.
* * *
*** to furnish, fabricate, deliver and install 135# crane rails with accessories for the 240’ long runway. Alignment for proper span and parallelism is included. Estimated shipping weight 25,665#.”

The proposal was sent to Leffingwell Steel Company, but was accepted by Lefco, Inc., at the same address. The contract price was $32,107.

Lefco occupied a wholesale steel warehouse in which the crane was to be used to move rolls of steel. La Salle held title to the property under Trust No. 44679, for the beneficial interest of Leffingwell Steel Company. Great West, which subsequently purchased the property, concedes that Lefco entered the contract with Leffingwell’s knowledge and consent.

Louis E Bodee, the president of Crane, testified in his deposition taken May 31, 1983, “I very reasonably believe” that the crane was leased from a “leasing company.” The parties agree that Crane did not supply the crane. No lease, however, has been offered or introduced.

Bodee described the work. Crane installed two rails overhead about 45 feet above the floor, approximately 80 feet apart and running the length of the building. The building is designed with “runway beams or girders,” which are supported by building columns and which have been sized to support the crane runway rails. The rails are attached to the runway beams with a “J” fastener which permits adjustment of the rails laterally.

The crane “to some extent” is built on the runway. First the rails are shipped in and installed. They are in 39-foot sections and are spliced together to make a 240-foot length of rail. The crane is then unloaded in parts, as received. It goes up in components. The crane consists of a “cab on a trolley.” The trolley is a lifting mechanism, on wheels, which runs back and forth on two girders. It has a hoist and some controls. Power conductors, similar to overhead wires which electrical street cars employ, are installed along the runway. The crane runs over the whole 240-foot length.

The crane is used to handle rolls of steel, to off-load them from rail cars or flat-bed trailers, and to place them into or remove them from storage.

Bodee testified that “[i]t would probably be impractical to move this crane.” However, he also testified that removal could be accomplished without material damage to the building.

The affidavit from La Salle states that Great West contracted to purchase the property from Leffingwell March 9, 1981, and purchased by deed dated January 8,1982.

Work was performed between January 4 and February 15, 1982. Upon completion, Crane billed Lefco for $32,832.22. Leffingwell Steel, not Lefco, paid $15,000. When $17,832.22 remained due, Crane filed its mechanics’ lien claim June 10, 1982, within four months of completion of work. Crane bases its lien claim solely on the labor and materials expended to install the crane, not on the crane itself. It filed a complaint to foreclose the lien June 24, 1983, within two years of completion of work, against all the parties named in this suit.

Lefco and Leffingwell Steel defaulted, and judgment was entered against them March 22,1983.

Crane moved for summary judgment supported by its complaint; Great West filed a cross-motion for summary judgment supported by a memorandum and affidavit. The trial court granted summary judgment for Crane.

Great West contends that (1) the leased machinery, fixtures and apparatus constituting the operating crane are not permanent fixtures and that the work performed in installing the leased items is not lien-able; (2) they, as subsequent purchasers without record notice of the mechanics’ lien, are not bound; (3) genuine issues of material fact remain which preclude summary judgment. In addition to arguing that the labor and material involved is lienable and that it is established by the facts, Crane makes the alternative argument that it would, in any event, be entitled to an equitable application of the payments already made to that portion of the work found to be nonlienable.

I

The factors to be considered in determining whether equipment has become a fixture, and thus “lienable,” so that the realty to which it has been affixed can be subjected to a mechanics’ lien claim, are: (1) the nature of its attachment to the realty, (2) its adaptation to and necessity for the purposes for which the premises are devoted, and (3) whether it was intended that the item in question should be considered part of the realty. (Fehr Construction Co. v. Postal System (1919), 288 Ill. 634, 642; B. Kreisman & Co. v. First Arlington National Bank (1980), 91 Ill. App. 3d 847, 852.) Intention is the preeminent factor, the other considerations being primarily evidences of intent. (Owings v. Estes (1912), 256 Ill. 553, 556; Kreisman & Co. v. First Arlington National Bank (1980), 91 Ill. App. 3d 847, 852.) The fact that an item can be removed without material injury to the realty does not of itself destroy its lienability. (Owings v. Estes (1912), 256 Ill. 553, 555; Wanzer v. Smorgas-Brickan Developers, Inc. (1970), 130 Ill. App. 2d 378, 385-86.) That an item may be removed does not conclusively establish that it is a trade fixture where it is clear that there is an intention permanently to improve the property by its installation. (See Dual Temp Installations, Inc. v. Chicago Title & Trust Co. (1976), 41 Ill. App. 3d 415, 417-18.) Parties may, however, contract to evidence an intention that the title to chattels which become annexed to realty does not pass and that they retain their character as trade fixtures until paid for; this agreement is binding upon the parties to the agreement where no rights of third parties are unfairly affected. Jones v. Jos.

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Bluebook (online)
466 N.E.2d 397, 125 Ill. App. 3d 658, 80 Ill. Dec. 945, 1984 Ill. App. LEXIS 2039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crane-erectors-riggers-inc-v-la-salle-national-bank-illappct-1984.