Miller v. Reed

302 N.E.2d 131, 13 Ill. App. 3d 1074, 1973 Ill. App. LEXIS 2166
CourtAppellate Court of Illinois
DecidedSeptember 13, 1973
Docket72-96
StatusPublished
Cited by22 cases

This text of 302 N.E.2d 131 (Miller v. Reed) 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
Miller v. Reed, 302 N.E.2d 131, 13 Ill. App. 3d 1074, 1973 Ill. App. LEXIS 2166 (Ill. Ct. App. 1973).

Opinion

Mr. JUSTICE GEORGE J. MORAN

delivered the opinion of the court:

Defendant Reed appeals from a decree awarding plaintiff Miller a mechanics’ lien against co-defendants Reed and Payne and from a decree awarding counterplaintiff Payne a judgment against counterdefendant Reed.

Plaintiff-contractor Miller (hereafter called “contractor”) entered into an oral contract with defendant Payne (hereafter called “tenant”), although not actually a tenant but rather a person in possession of premises under an arrangement with the owner to do certain electrical work on defendant-owner (hereafter called “owner”) Reed’s premises. Tenant and owner agreed to lease certain property for the operation of a restaurant and tavern after certain improvements were made. No written lease was entered into, and no period of time for the lease was agreed upon, but rent was agreed to be $175 per month. Owner provided the work which he had agreed to do, and gave tenant keys to the premises so that tenant could do the work he had agreed to do. Tenant orally contracted with contractor to do the electrical work. Contractor performed some of the work with owner’s knowledge and approval. Contractor performed general work until he felt he could go no further without more specifications as to the particular equipment that would be instaHed. After several more months had passed, owner leased the premises to another person for $250 per month. Contractor brought an action against both tenant and owner. The circuit court filed a memorandum opinion finding that the contract was not permitted to be completed “due to the delay and düatory action of the co-defendants and each of them” and that “defendant Payne’s delay was compounded by action of defendant Reed in obtaining another lease without notice, preventing the plaintiff MiHer from completing the contract.” The court awarded a mechanics’ lien in favor of the contractor in the amount of $1738.96, representing the value of the approximately 50% of the agreed work which had been completed, and awarded a judgment to counter-plaintiff-tenant in the amount of $869.48 based on the enhanced value of the owner’s premises in the event the tenant subsequently be required to pay for the total cost of the improvements.

Owner first contends that the tenant did not have such an interest in the property as would give rise to a mechanics’ hen. The applicable statute is section 1 of the Mechanics’ Lien Act (Ill. Rev. Stat. 1971, ch. 82, par. 1):

“Any person who shaH by any contract or contracts, express or impfied, or partly expressed or implied, with the owner of a lot or tract of land, or with one whom such owner has authorized or knowingly permitted to contract for the improvement of, * * * shaH be known under the Act as a contractor, and shall have a Hen upon the whole of such lot or tract of land * * * for the amount due to him for such material, fixtures, apparatus, machinery, services or labor, and interest from the date the same is due. * * *” (Emphasis added.)

The object and purpose of the Mechanics’ Lien Act is to protect those who in good faith furnish material or labor for the construction of buüdings. While the statute must be strictly construed with respect to aH matters on which the lien depends, the courts have held that after the Hen claimant has complied strictly with the statutory requirements to establish a Hen, then the court should give the statute a liberal construction so that justice wiH be done between the parties. The suit is one in equity and equity principles apply. Gunther v. O’Brien (2d Dist. 1937), 293 Ill.App. 28, 12 N.E.2d 23.

Owner claims that tenant Payne lacked a sufficient interest in the property to contract for a mechanics’ hen because he was in possession of the premises in the capacity of a tenant at sufferance, citing Proctor v. Tows (1885), 115 Ill. 138. In Proctor the occupant of the defendant’s land built a house upon the defendant’s land and the contractor brought suit against the occupant of the premises contending that he was entitled to a mechanics’ hen upon the property. Our Supreme Court held that since the tenant was a mere tenant at sufferance, no mechanics’ hen attached. The language in the Mechanics’ Lien Act in force in 1885 (Rev. Stat. 1874, p. 665, sec. 1) required that the contractor have a contract with the owner of the land before a mechanics’ hen could attach. However, the Act now requires only that the contract be with the owner or with one whom such owner has authorized or “knowingly permitted” to contract for the improvement of or to improve the land. Therefore, Proctor is not controlling in this case. The owner is assumed to have “knowingly permitted” the improvements where he knew and failed to protest or accepted the benefits of the improvements. (Janisch v. Reynolds, 254 Ill.App. 569; Young v. Bergner, 243 Ill.App. 473; Mutual Construction Co. v. Baker, 237 Ill.App. 596.) Here the record clearly shows that the owner knowingly permitted the tenant to contract for the improvements. Under our statute, this is sufficient to give rise to a mechanics’ lien upon the owner’s property.

Owner next contends that the contractor’s failure to render substantial compliance with the contract by virtue of his non-completion of the contracted-for work means that no mechanics’ Hen can attach. NormaUy, it is a prerequisite to a mechanics’ Hen that the contractor complete performance of the contract. (See Love Mechancis’ Liens in Illinois, par. 58, at 129 (1931).) In Gottschalk Construction Co. v. Carlson, 253 Ill.App. 520, the court stated at 529:

“The contract is the basis of the Hen and to maintain a mechanics’ Hen suit, petitioner must show either performance or excuse for non-performance which must result from the owner’s breach of contract.”

In the present case the plaintiff-contractor completed only approximately one half of the work. However, the trial court found that the contract was not permitted to be completed “* * * due to the delay and dilatory action of the co-defendants and each of them.” This is an excusé for non-performance within the meaning of the quote from Gottschalk.

Furthermore, section 4 of the Mechanics’ Lien Act (Ill. Rev. Stat. 1971, ch. 82, par. 4) provides that a contractor who is prevented from performing his contract by default of the owner shaU be entitled to enforce bis Hen for the value of what has been done. Although the trial court found both the owner and tenant at fault here, we observe that the hen would be equally valid if the tenant was the only party who prevented completion of the contract. In Cooper v. Palais Royal Theatre Co. (1926), 242 Ill.App. 184, the court held that the Act must be read as a whole and that the meaning of the word “owner” as used in section 4 was the same as the meaning of “owner” in section 1, and thus held that where a contractor had furnished labor and materials for an improvement upon property under a contract not with the actual owner but rather with one whom the owner had “knowingly permitted” to make the improvement, the contractor was entitled to a lien for the reasonable worth of such labor and materials although he did not complete the contract because of the failure of the party whom the owner had “knowingly permitted” to make the improvement to perform his part of the contract.

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

Related

Construx of Illinois Inc. v. Kaiserman
Appellate Court of Illinois, 2003
MQ Construction Co. v. Intercargo Insurance Co.
Appellate Court of Illinois, 2000
MQ Construction Co. v. Intercargo Insurance
742 N.E.2d 820 (Appellate Court of Illinois, 2000)
Leveyfilm, Inc. v. Cosmopolitan Bank & Trust
653 N.E.2d 875 (Appellate Court of Illinois, 1995)
Airtite v. DPR Ltd. Partnership
638 N.E.2d 241 (Appellate Court of Illinois, 1994)
Wilmette Partners v. Hamel
594 N.E.2d 1177 (Appellate Court of Illinois, 1992)
Abbott Electrical Construction Co. v. Ladin
494 N.E.2d 1251 (Appellate Court of Illinois, 1986)
Daily v. MidAmerica Bank & Trust Co.
474 N.E.2d 788 (Appellate Court of Illinois, 1985)
Crane Erectors & Riggers, Inc. v. La Salle National Bank
466 N.E.2d 397 (Appellate Court of Illinois, 1984)
Downes Swimming Pool, Inc. v. North Shore National Bank
464 N.E.2d 761 (Appellate Court of Illinois, 1984)
Luczak Brothers, Inc. v. Generes
451 N.E.2d 1267 (Appellate Court of Illinois, 1983)
National Boulevard Bank v. Citizens Utilities Co.
438 N.E.2d 471 (Appellate Court of Illinois, 1982)
Contract Builders Service Corp. v. Eland
428 N.E.2d 178 (Appellate Court of Illinois, 1981)
B. Kreisman & Co. v. First Arlington National Bank
415 N.E.2d 1070 (Appellate Court of Illinois, 1980)
Armco Steel Corp. v. La Salle National Bank
335 N.E.2d 93 (Appellate Court of Illinois, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
302 N.E.2d 131, 13 Ill. App. 3d 1074, 1973 Ill. App. LEXIS 2166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-reed-illappct-1973.