Midwest Environmental Consulting & Remediation Services, Inc. v. Peoples Bank

620 N.E.2d 469, 251 Ill. App. 3d 256, 189 Ill. Dec. 501, 1993 Ill. App. LEXIS 1397
CourtAppellate Court of Illinois
DecidedSeptember 9, 1993
Docket4-93-0089
StatusPublished
Cited by11 cases

This text of 620 N.E.2d 469 (Midwest Environmental Consulting & Remediation Services, Inc. v. Peoples 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
Midwest Environmental Consulting & Remediation Services, Inc. v. Peoples Bank, 620 N.E.2d 469, 251 Ill. App. 3d 256, 189 Ill. Dec. 501, 1993 Ill. App. LEXIS 1397 (Ill. Ct. App. 1993).

Opinion

JUSTICE McCULLOUGH

delivered th.e opinion of the court:

Defendant Peoples Bank of Bloomington, as trustee under trust No. PBB — 140, appeals from an order of the circuit court of McLean County awarding judgment in favor of plaintiff, Midwest Environmental Consulting & Remediation Services, Inc. (Midwest Environmental), in the total amount of $40,923.44, consisting of $37,719.86 for foreclosure of a mechanic’s lien, $3,125.58 interest, and $78 costs. The order was entered following a bench trial. The beneficial interest in the trust belongs to Snyder Development, Inc. (Snyder Development), which was., a party to the contract involved in this case. Additional defendants, the First National Bank of Springfield and Mid-State Petroleum, Inc., were dismissed prior to trial.

Plaintiff’s complaint sought to foreclose a mechanic’s lien. The subject property is lot 2 in B & E Subdivision to the City of Blooming-ton, according to the plat thereof recorded July 15, 1987, as document No. 87 — 14112 in McLean County, Illinois, and commonly known as 1702 East Empire Street, Bloomington, Illinois. The basis of the mechanic’s lien was the performance by plaintiff of an oral contract for the engineering consultation fees and expenses for the removal of underground storage tanks and the excavation of contaminated soil from the subject property on which a gasoline service station had been located. In its answer to the complaint, defendant alleged an “affirmative defense” for a setoff “for cleanup expenses incurred by Defendant which were caused by Plaintiff’s negligently rendered services and advice.”

The issues to be considered in this appeal are whether (1) negligence is an affirmative defense to an action to foreclose a mechanic’s lien; (2) defendant received the full benefit under its contract with plaintiff; (3) plaintiff was not entitled to assert a mechanic’s lien because he held himself out as an engineer, but was not licensed in Illinois; (4) charges for disposing of contaminated soil at a landfill were lienable charges; and (5) the judgment was against the manifest weight of the evidence. Judgment is affirmed as modified herein.

Before proceeding to an analysis of the issues, this court must address a request made by defendant in the appellant’s brief to supplement the record with defendant’s three-page trial memorandum which, although provided to plaintiff’s counsel and the trial court, was not included in the record on appeal. Although the request ought properly have been made by motion with supporting affidavit (134 Ill. 2d Rules 329, 361(a)), plaintiff does not object to the request. The request to supplement the record is allowed.

The first issue is whether negligence is an affirmative defense to an action to foreclose a mechanic’s lien. Defendant’s affirmative defense not only alleges that the plaintiff’s performance of the site cleanup was negligent, but as the evidence indicates defendant also complains that the service rendered by plaintiff in estimating the cost of the cleanup was rendered negligently. The allegation in the affirmative defense could arguably be based on the theory of negligent misrepresentation. However, that is not the theory asserted by defendant in the trial court or on appeal.

Plaintiff sought to foreclose a mechanic’s lien pursuant to section 1 of the Mechanics Lien Act (Act) (Ill. Rev. Stat. 1991, ch. 82, par. 1). The rationale behind the Act is that when the owner of property has benefitted from the work of a contractor, it is just to require the owner to pay for such benefit if the owner’s actions induced or encouraged the contractor to perform the work. (Verplank Concrete & Supply, Inc. v. Marsh (1976), 40 Ill. App. 3d 742, 744, 353 N.E.2d 27, 29.) Mechanic’s liens are purely statutory, in derogation of the common law, and must be strictly construed. (Hoier v. Kaplan (1924), 313 Ill. 448, 451, 145 N.E. 243, 244.) A remedy under the Act is in addition to ordinary common law remedies for the enforcement of the contract out of which the lien arises. Hoier, 313 Ill. at 455-56, 145 N.E. at 246; West v. Flemming (1857), 18 Ill. 248, 248.

There is authority for the proposition that a defense based on an architect’s negligent performance may be asserted against an architect who is suing to recover compensation for a job. (6 C.J.S. Architects §41, at 508 (1975).) Therefore, under section 2 — 613(d) of the Illinois Code of Civil Procedure (Code) (Ill. Rev. Stat. 1991, ch. 110, par. 2 — 613(d)), negligent performance may be raised as an affirmative defense in an action by an engineer to recover compensation sought to be enforced by a mechanic’s lien.

The next issue is whether plaintiff was precluded from asserting a mechanic’s lien because Allan Green, the company’s president, held himself out as an engineer, but was not licensed in Illinois. The persons entitled to a mechanic’s lien are defined in section 1 of the Act. That statute states in part:

“Any person who shall by any contract or contracts, express or implied, or partly expressed or implied, with the owner of a lot or tract of land, or with one whom the owner has authorized or knowingly permitted to contract, to improve the lot or tract of land or to manage a structure thereon *** or perform any services or incur any expense as an architect, structural engineer, professional engineer, land surveyor or property manager in, for or on a lot or tract of land for any such purpose; *** is known under this Act as a contractor, and has a lien upon the whole of such lot or tract of land and upon adjoining or adjacent lots or tracts of land of such owner constituting the same premises and occupied or used in connection with such lot or tract of land as a place of residence or business; *** and interest at the rate of 10% per annum from the date the same is due. *** This lien attaches as of the date of the contract.” Ill. Rev. Stat. 1991, ch. 82, par. 1.

Contrary to defendant’s position, plaintiff need not be an architect, structural engineer, professional engineer, land surveyor, or property manager to assert a mechanic’s lien. Any person who does improvement work on the land under a contract with the owner can assert a mechanic’s lien.

In Mani Electrical Contractors v. Kioutas (1993), 243 Ill. App. 3d 662, 664-67, 611 N.E.2d 1167, 1169-70, the enforcement of a mechanic’s lien was considered where it was claimed that the contractor proceeded in violation of the Chicago Municipal Code. The Chicago Municipal Code provided that (1) it was unlawful for a person to engage in the business of electrical contracting without being registered as such, (2) no person could operate under a permit issued to another person, and (3) it was unlawful for a registered contractor to furnish a permit for electrical work to a person not entitled to such a permit under that Code. (See Chicago Municipal Code §§86 — 16, 86 — 37, 86— 38 (1984).) In analyzing the contract on which the lien was based, the court stated: “The question to be asked is whether the bargain necessarily contemplated an illegal bargain, not whether an otherwise legal contract is performed in a manner which involves a violation of the law.” (Mani Electrical Contractors, 243 Ill. App.

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Cite This Page — Counsel Stack

Bluebook (online)
620 N.E.2d 469, 251 Ill. App. 3d 256, 189 Ill. Dec. 501, 1993 Ill. App. LEXIS 1397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midwest-environmental-consulting-remediation-services-inc-v-peoples-illappct-1993.