Inter-Rail Systems, Inc. v. Ravi Corp.

900 N.E.2d 407, 387 Ill. App. 3d 510
Appellate Court of Illinois·Decided December 22, 2008·No. 1-07-2369·Published·Cited by 10 cases

Opinion

JUSTICE HALL

delivered the opinion of the court:

The plaintiff, Inter-Rail Systems, Inc., filed a multicount complaint against the defendants, Ravi Corporation, Vishnu Gor, L.C. Hertz, National Waste Services, Inc., Capital Acquisitions and Development, Inc., Marquette National Bank, RPM Recycling, unknown owners and nonrecord claimants (collectively the defendants). Counts I and IV sought foreclosure of mechanic’s liens filed against two properties owned by the defendants. The remaining counts alleged causes of action for breach of contract and quantum meruit. The circuit court granted the defendants’ motion for partial summary judgment as to counts I and IV of the complaint and found that there was no just reason to delay enforcement or appeal of its order.

The plaintiff appeals. The sole issue on appeal is whether the defendants were entitled to partial summary judgment because the removal and disposal of waste pursuant to a United States Environmental Agency order is not a lienable activity under the Mechanics Lien Act (770 ILCS 60/1 et seq. (West 2004)) (the Act). The pertinent facts are taken from the pleadings, exhibits, depositions and affidavits contained in the record on appeal.

In July 2005, responding to a request from the City of Chicago department of the environment, the United States Environmental Emergency Response Branch (the EPA) inspected a parking lot located at 6147 West 65th Street in Bedford Park, Illinois. In the parking lot were 14 semi-trailers filled with drums and totes containing unknown chemicals; some of the containers were leaking. The substances appeared to be perfume agents used in the manufacture of industrial cleaners.

The EPA also inspected a warehouse at 6158 West 65th Street, across the street from the parking lot. The inspection of the warehouse revealed over 500 55-gallon drums and a number of totes throughout the building. Many of the drums were in poor condition. There was material present on the outside of the drums; some were leaking their contents onto the floor. Many of the drums had labels indicating they contained acids, caustics and oxidizers. There were numerous pallets stacked with bags of raw materials, including sodium hydroxide; many of the bags were ripped open, releasing their contents. The totes reportedly contained waste water from previous operations at the site.

In August 2005, the EPA met with a representative of defendant Ravi Corporation at the warehouse. There was a slight haze in the warehouse most likely due to fumes from the acid reacting with rain water. The acid was leaking from a nitric acid tank; a strong acid odor was noted in the vicinity of the tank.

According to the complaint, in August 2005, the defendants contracted with the plaintiff for the removal and disposal of the drums from both the parking lot and the warehouse (hereinafter referred to collectively as “the site”). In the meantime, the defendants and the EPA entered into a consent decree requiring the defendants to clean up the site by testing and removing the trailers, drums and totes. The cleanup also required scraping, sweeping, decontaminating or removing any areas of the trailers or on the site where spills occurred in order to remove the contamination. The plaintiffs work was completed on December 1, 2005. When the defendants failed to pay the balance due on the contract, the plaintiff recorded mechanic’s liens against the site and filed the instant complaint.

In their motion for partial summary judgment, the defendants maintained that, contrary to the plaintiffs claim that it performed cleanup, removal and transport of hazardous waste from the site, the plaintiff was contracted only to remove certain drums containing various substances. The defendants further maintained that the plaintiff did not perform any work which resulted in any improvements to the site. Therefore, the plaintiff did not meet the requirements for a lien claim under the Act. In support of their motion, the defendants relied on the affidavits of defendant Vishu Gor, president of defendant Ravi Corp., and Thomas Powell, a former employee of the plaintiff.

Mr. Gor averred that the plaintiff was hired to remove certain drums containing various materials from the sites. The materials were all contained in drums prior to the arrival of the plaintiff on the site. Neither the plaintiff nor its personnel were engaged to perform any cleaning or decontamination services on the site. In his affidavit, Mr. Powell averred that he was the plaintiffs primary on-site employee for the project with the defendants. The plaintiff’s work on the site consisted of testing, removal and transport of drums containing various materials. At no time did the plaintiff perform or provide any cleanup or decontamination of any spills, leaks or other contamination on the site.

The defendants’ motion was also supported by an April 16, 2006, EPA pollution report that described the plaintiffs activities on the site as follows:

“Beginning in September 2005, the LC Mertz/Gor Drum contractor began staging and inventorying drums and containers located in both the warehouse and in trailers in the parking area. Trailers in the parking area were moved to the warehouse loading dock and the contents of the trailers were off loaded and staged in the warehouse.”

After describing the number of containers found in the warehouse and the number moved from the trailers to the warehouse, the report continued as follows:

“All drums, containers, and tanks were given an identification number, sampled and hazard characterized (haz-cat). *** Representative samples of the identified waste streams were sent to a laboratory for analysis. Materials were grouped into their respective waste streams for disposal.
All other RCRA empty drums, totes and jugs were cut/crushed.
In addition, the floor drainage pit was pumped and rinsed, several tanks on-site were emptied and rinsed. Contents of the floor pit and tanks were characterized and appropriately disposed of offsite. The floor and machinery were cleaned. The contractor demobed from the site on December 15, 2005.”

In its response to the motion for partial summary judgment, the plaintiff maintained that the removal of the hazardous and toxic waste from the site constituted an improvement to the property under the Act. The plaintiff cited the findings of the EPA that conditions on the site posed a threat to public health and welfare and that the removal order was necessary to protect the public. The plaintiff maintained that the defendants admitted that cleanup of toxic and hazardous waste was lienable under the Act, and therefore, their motion for partial summary judgment should be denied.

In support of its response, the plaintiff relied on Mr. Gor’s deposition testimony in which he acknowledged the hazard the drums posed to the environment. The plaintiff also cited Mr. Powell’s deposition testimony in which he described the protective clothing he wore while moving the drums in order to avoid coming into contact with or breathing in any of the substances.

As to the work performed, the plaintiff relied on Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Inter-Rail Systems, Inc. v. Ravi Corp., 900 N.E.2d 407, 387 Ill. App. 3d 510 (Ill. Ct. App. 2008).

900 N.E.2d 407 (Inter-Rail Systems, Inc. v. Ravi Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

AUI Construction Group, LLC v. Vaessen
2016 IL App (2d) 160009 (Appellate Court of Illinois, 2017)
Rohr Burg Motors, Inc. v. Kulbarsh
2014 IL App (1st) 131664 (Appellate Court of Illinois, 2014)
Cityline Construction Fire and Water Restoration, Inc. v. Roberts
2014 IL App (1st) 130730 (Appellate Court of Illinois, 2014)
All Clean, Inc. v. Timberline Properties
2011 UT App 370 (Court of Appeals of Utah, 2011)
Doornbos Heating & Air Conditioning, Inc. v. Schlenker
932 N.E.2d 1073 (Appellate Court of Illinois, 2010)
Quintas v. Asset Management Group, Inc.
917 N.E.2d 100 (Appellate Court of Illinois, 2009)
Weydert Homes, Inc. v. Kammes
917 N.E.2d 64 (Appellate Court of Illinois, 2009)