Merchants Environmental Industries, Inc. v. SLT Realty Ltd. Partnership

731 N.E.2d 394, 314 Ill. App. 3d 848, 246 Ill. Dec. 866, 2000 Ill. App. LEXIS 448
CourtAppellate Court of Illinois
DecidedJune 6, 2000
Docket1-99-2942
StatusPublished
Cited by23 cases

This text of 731 N.E.2d 394 (Merchants Environmental Industries, Inc. v. SLT Realty Ltd. Partnership) 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
Merchants Environmental Industries, Inc. v. SLT Realty Ltd. Partnership, 731 N.E.2d 394, 314 Ill. App. 3d 848, 246 Ill. Dec. 866, 2000 Ill. App. LEXIS 448 (Ill. Ct. App. 2000).

Opinion

JUSTICE GORDON

delivered the opinion of the court:

Plaintiff Merchants Environmental Industries, Inc. (MEI), appeals from an order of the circuit court of Cook County granting summary judgment in favor of defendants SLT Realty Limited Partnership (SLT) and Iron Mike’s, L.L.C. (Iron Mike’s). In the order appealed from, the court granted summary judgment as to counts I and II of MEI’s amended complaint for foreclosure of a mechanic’s lien in the amount of $219,317.75. Pursuant thereto, the court entered the necessary Supreme Court Rule 304(a) (134 111. 2d R. 304(a)) finding to make its ruling immediately appealable. MEI argues on appeal that summary judgment was improper because there were triable issues as to whether its notice of lien and recording of lien were timely, and whether a waiver of lien filed in August 1997 operated to waive MEI’s lien rights. For the reasons set forth below, we affirm the granting of summary judgment as to SLT, but reverse it as to Iron Mike’s, and remand for further consideration.

BACKGROUND

On May 13, 1998, MEI filed its amended complaint for foreclosure of mechanic’s lien and other relief against SLT, Iron Mike’s, Tom Gold Construction Company (Gold), MS Tremont, L.P (Tremont), and several other defendants. MEI alleges that in October 1996 Iron Mike’s leased part of the premises at 100 East Chestnut in Chicago, Illinois (also known as the Tremont Hotel), to be used as a restaurant. At that time the owner of the premises was Tremont, but SLT subsequently became the owner (allegedly on April 8, 1997), and the Iron Mike’s lease was transferred to SLT, which then became the successor landlord. 1 Prior to that purchase, while Tremont was still the owner, MEI alleges that End Zone Enterprises, Inc., the manager of Iron Mike’s, contracted with Gold to act as general contractor in the construction of space in the hotel premises to house Iron Mike’s restaurant. At about the same time (November 1996), MEI avers that it entered into a subcontract with Gold to perform heating, ventilation, and air conditioning (HVAC) work in the Iron Mike’s project for the sum of $115,000.

MEI further alleges that, at the specific request of Gold and the premises owner, it furnished additional duct work, equipment and piping for the project, and that the total amount due for those extras was $210,323.42. According to MEI, as of August 29, 1997, it had completed all work required under the subcontract plus all extra work requested. MEI avers that it has received payments of $106,005.67, leaving a balance due of $219,317.75, which MEI asserts has not been paid despite frequent requests. Therefore, MEI claims a mechanic’s lien on the premises plus “the materials, fixtures, apparatus and machinery furnished by it[,] and upon the moneys or other considerations due or to become due from the Owner to [Gold] for said amounts due the Plaintiff.”

MEI alleges that its notice of mechanic’s lien claim of subcontractor, dated November 6, 1997, was sent within 90 days after its completion of all work and delivery of all materials and thus was timely. In addition, MEI avers that its subcontractor’s claim for lien, recorded December 17, 1997, was timely filed within four months after completion of all work and delivery of all materials.

In count I of the amended complaint, which is designated “Action to Foreclose on Mechanics’ Lien,” MEI seeks execution of its mechanic’s lien “for whatever sum shall be found due *** including statutory interest from August 29, 1997, and its costs herein.” Alternatively, in count II, designated “Action Against Owner and Contractor Jointly Pursuant to 770 ILCS 60/28,” MEI seeks judgment jointly and severally against SLT and Gold for $219,317.75 plus statutory interest and costs. 2

Attachments to the amended complaint include a copy of the above-mentioned subcontract between Gold and MEI, dated November 22, 1996; a copy of MEI’s notice of mechanics’ lien claim of subcontractor, dated November 6, 1997; and a copy of MEI’s subcontractor’s notice and claim for lien, recorded December 17, 1997.

SLT filed a motion for summary judgment on March 16, 1999, alleging that a waiver of lien to date executed by MEI on August 29, 1997, waived any of MEI’s mechanic’s lien rights up to and including that date, in exchange for a payment of $31,938. SLT also alleged that MEI completed all of its work on the property before August 17, 1997, and that its claim for lien, which was recorded December 17, 1997, therefore came more than four months after the completion date and was untimely under section 7 of the Mechanics Lien Act (Act) (770 ILCS 60/7 (West 1992)).

Attached to the motion is a copy of MEI’s August 29, 1997, “Waiver of Lien to Date,” which states that, in consideration of a payment of $31,938, “the receipt whereof is hereby acknowledged,” MEI

“do(es) hereby waive and release any and all lien or claim of, or right to, lien, under the statutes of the State of Illinois, relating to mechanics’ liens, with respect to and on said above-described premises [Iron Mike’s, 100 East Chestnut Street], and the improvements thereon, and on the material, fixtures, apparatus or machinery furnished, and on the moneys, funds or other considerations due or to become due from the owner, on account of labor services, material, fixtures, apparatus or machinery, furnished to this date [August 29,1997] by the undersigned [MEI] for the above-described premises.”

In addition, the “Contractor’s Affidavit” attached to the waiver states that “all waivers are true, correct and genuine and delivered unconditionally and that there is no claim either legal or equitable to defeat the validity of said waivers.” The affidavit also lists the total contract price (for both plumbing 3 and HVAC work) as $450,120.95, the amount already paid as $198,835, an amount ($31,938) designated as “this payment,” and the “balance due” as $219,347.95, which is the amount claimed in MEI’s amended complaint.

In support of its allegation that MEI’s lien claim was not timely filed, SLT attached an index of MEI time sheets for the Iron Mike’s project that was included in a report by Joseph Manzi, described by SLT as MEI’s “opinion witness.” The last week listed in that index is the week ending May 13, 1997. SLT also attached what it terms “the very last time sheet of any sort produced by the Plaintiff’ (emphasis in original), which is for the week ending July 29, 1997 (not August 29, 1997). One of the entries on that time sheet shows two hours of work on July 25, 1997, and SLT claims that entry is the only one bearing one of MEI’s project numbers for the Iron Mike’s project. However, that entry states the address as “200 Adams,” which is not the address of the Iron Mike’s property.

In further support of its untimeliness allegation, SLT attaches an MEI invoice to Gold dated June 3, 1997, stating that it is the “[fjinal billing” for the 100 East Chestnut project.

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731 N.E.2d 394, 314 Ill. App. 3d 848, 246 Ill. Dec. 866, 2000 Ill. App. LEXIS 448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-environmental-industries-inc-v-slt-realty-ltd-partnership-illappct-2000.