Divane v. Smith

774 N.E.2d 361, 332 Ill. App. 3d 548, 266 Ill. Dec. 255
CourtAppellate Court of Illinois
DecidedJune 18, 2002
Docket1-01-2030
StatusPublished
Cited by12 cases

This text of 774 N.E.2d 361 (Divane v. Smith) 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
Divane v. Smith, 774 N.E.2d 361, 332 Ill. App. 3d 548, 266 Ill. Dec. 255 (Ill. Ct. App. 2002).

Opinion

PRESIDING JUSTICE BURKE

delivered the opinion of the court:

Plaintiffs William Divane, Jr., Michael Caddigan, I. Steven Diamond, Samuel Evans, Michael Fitzgerald, Thomas Halperin, David Hardt, Daniel Meyer, Richard Sipple, and Michael Walsdorf, as the Electrical Insurance Trustees (Trustees), appeal from two orders of the circuit court granting the motions of defendants Friedler Construction Co. (Friedler) and Board of Education of the City of Chicago (Board) to dismiss the Trustees’ complaint and first amended complaint, which alleged a claim under section 23(b) of the Mechanics Lien Act (Act) (770 ILCS 60/23(b) (West 1998)), and a breach of contract claim, pursuant to section 2 — 615 of the Code of Civil Procedure (Code) (735 ILCS 5/2 — 615 (West 1998)). 1 On appeal, the Trustees contend that the notice submitted to the Board pursuant to section 23(b) of the Act (770 ILCS 60/23(b) (West 1998)) satisfied the requirements of that section and was not deficient for failing to include the specific amount of their lien on Friedler’s (the general contractor) project funds. In addition, the Trustees contend that the notice provided to the Board pursuant to section 23(b) of the Act satisfied the requirements for notice under their breach of contract claim. For the reasons set forth below, we affirm in part, reverse in part, and remand this cause for further proceedings.

STATEMENT OF FACTS

Plaintiffs are trustees for a certain fringe benefits fund pursuant to an agreement entered into on June 24, 1930, between the Electrical Contractors’ Association of the City of Chicago (Association) and Local 134, International Brotherhood of Electrical Workers (Local 134). The Board contracted with Friedler to perform renovation work at Robeson High School and Harlan High School. Friedler, in turn, contracted with Dale Smith to perform the electrical work. In this regard, Smith signed a “Letter of Assent,” agreeing to be bound by the terms of a collective bargaining agreement entered into between the Association and Local 134. Under this agreement, Smith was required to pay certain wage rates to his employees, to file monthly reports with the Trustees, and to make monthly contributions to the Trustees for certain fringe benefits. Although Smith submitted weekly certified payroll reports to the Board, showing the total hours worked by each employee and the rate of pay, Smith failed to submit the monthly reports and contributions to the Trustees.

Because Smith failed to file monthly reports with the Trustees, they were not aware of his work until many months later. However, once the Trustees learned of Smith’s work, they sought an audit of his records. After Smith refused to have his records audited, the Trustees filed a lawsuit in the federal district court and the court ordered an audit of Smith’s books. Based on this audit, the Trustees discovered that Smith owed them approximately $125,000 in contributions. On September 29, 2000, the Trustees served notice of their lien on Friedler’s project funds on the Board pursuant to section 23(b) of the Act. On October 10, the Board acknowledged receipt of the notice and stated that it had directed its controller to withhold project funds due Friedler in an amount sufficient to satisfy the lien. However, approximately two weeks later, the Board reversed its position and stated that it would not withhold the funds.

On December 28, the Trustees filed a two-count complaint. Count I sought an accounting and an order directing the Board to remit the funds due the Trustees. Count II alleged a breach of contract claim based on a “Multi-Project Labor Agreement” (Labor Agreement), which was executed by the Board with Local 134, inter alia, and required the Board to withhold any disputed funds. The Trustees alleged that the Board failed to comply with the requirements of the Labor Agreement by failing to withhold the disputed funds from Friedler.

On January 29, 2001, the Board filed a motion to dismiss the Trustees’ complaint. With respect to count I, the Board contended that the Trustees lacked standing to bring a claim under the Act and, additionally, that the notice served upon it was deficient pursuant to section 23(b) of the Act because it failed to state the amount of the lien. With respect to count II, the Board contended that the Trustees failed to provide any notice of a lien on Friedler’s project funds as required by the Labor Agreement. Alternatively, the Board maintained that if the notice pursuant to section 23(b) could be construed to be notice under the Labor Agreement, the notice was nonetheless insufficient because it failed to set forth the amount of the lien. Friedler later joined and adopted the Board’s motion to dismiss.

On May 8, the trial court granted the motions to dismiss. While the court concluded that the Trustees had standing, pursuant to section 9(a) of the Labor Agreement, it found, however, that the Trustees’ section 23(b) notice to the Board was deficient, stating:

“[T]he clear and obvious requirement — if not the specific language — of Section 23(b) directs the claimant to state a specific amount due. In the absence of such a specific amount, the clerk does not know how much money to withhold.”

With respect to count II, the court concluded that the notice was defective for the same reason; it failed to set forth an amount that would satisfy the claim. On May 21, the Trustees moved to modify the May 8 order and sought leave to file an amended complaint. On May 30, the trial court entered a second order in which it granted the Trustees leave to file an amended complaint, stated that the Board and Friedler had adopted their previous motions to dismiss, reaffirmed its May 8 order, and dismissed the Trustees’ amended complaint. The order further provided that there was no just reason to delay enforcement or appeal. This appeal followed.

ANALYSIS

A motion to dismiss pursuant to section 2 — 615 of the Code tests the legal sufficiency of the plaintiff’s complaint. Lykowski v. Bergman, 299 Ill. App. 3d 157, 162, 700 N.E.2d 1064 (1998). “In determining the legal sufficiency of a complaint, all well-pleaded facts are taken as true and all reasonable inferences from those facts are drawn in favor of the plaintiff.” Lykowski, 299 Ill. App. 3d at 162. “The question on appeal from the granting of a section 2 — 615 motion is whether the allegations in the complaint, when viewed in a light most favorable to the plaintiff, are sufficient to state a cause of action upon which relief can be granted.” Lykowski, 299 Ill. App. 3d at 162-63. We review the trial court’s decision de novo. Lykowski, 299 Ill. App. 3d at 162.

This case requires us to construe a statute, which involves a question of law subject to de novo review. In re Estate of Andernovics, 197 Ill. 2d 500, 507, 759 N.E.2d 501 (2001). “The cardinal rule of statutory construction is to ascertain and give effect to the intent of the legislature.” People ex rel. Ryan v. McFalls, 313 Ill. App.

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Bluebook (online)
774 N.E.2d 361, 332 Ill. App. 3d 548, 266 Ill. Dec. 255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/divane-v-smith-illappct-2002.