Steinberg v. Chicago Title & Trust Co.

491 N.E.2d 1294, 142 Ill. App. 3d 601, 96 Ill. Dec. 834, 1986 Ill. App. LEXIS 2092
CourtAppellate Court of Illinois
DecidedMarch 31, 1986
DocketNo. 83—1643
StatusPublished
Cited by9 cases

This text of 491 N.E.2d 1294 (Steinberg v. Chicago Title & Trust Co.) 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
Steinberg v. Chicago Title & Trust Co., 491 N.E.2d 1294, 142 Ill. App. 3d 601, 96 Ill. Dec. 834, 1986 Ill. App. LEXIS 2092 (Ill. Ct. App. 1986).

Opinion

PRESIDING JUSTICE RIZZI

delivered the opinion of the court:

This appeal arises from an order of the trial court granting the motions of defendants American National Bank and Trust Company of Chicago, La Salle National Bank and numerous individual defendants for summary judgment against plaintiff Jay Steinberg as trustee in bankruptcy for D & W Equipment Company. We affirm.

D & W Equipment Company, an Illinois corporation, initiated this lawsuit against numerous defendants to foreclose a “blanket” mechanic’s lien it had filed on September 5', 1979. The lien related to excavation and grading work performed by D & W on subdivided property presently known as Charlemagne Subdivision, Hoffman Estates, Illinois. The lien was for the amount of $104,419, stated a completion date of June 8, 1979, and was asserted against three pieces of property defined by three perimeters metes and bounds descriptions.

On August 29, 1980, Jay Steinberg, as trustee in bankruptcy for D & W, was substituted as plaintiff in the mechanic’s lien foreclosure suit. Plaintiff then filed a second amended complaint to foreclose D & W’s “blanket” lien claim. The second amended complaint named additional individual defendants and sought foreclosure of the “blanket” lien claim on only 146 lots in Unit 1 and 20 lots in Unit 3 of the Charlemagne Subdivision rather than on the entire subdivision which the lien covered. Of the named defendants in plaintiff’s second amended complaint, defendants American National Bank and Trust Company of Chicago, as trustee under trusts Nos. 509353, 51512 and 51252, La Salle National Bank as mortgagee under document No. 24629245, and various individual defendants, comprised of individual lot owners, and their respective mortgagees filed motions for summary judgment. All of these defendants are third parties to D & W’s mechanic’s lien claim. Plaintiff filed his response. The trial court granted the motions for summary judgment. It also dismissed all named defendants and dismissed the second amended complaint with prejudice. The court based its dismissal on two violations of section 7 of the Mechanics’ Liens Act (Ill. Rev. Stat. 1981, ch. 82, par. 7): (1) that plaintiff’s mechanic’s lien did not contain a sufficiently correct description of the land covered and (2) that plaintiff’s “blanket” lien claim failed to allocate1 by specific lot the amount due under the lien.

On appeal plaintiff asserts three arguments: (1) that the mechanic’s lien claim filed by D & W correctly and adequately described the property against which the lien was asserted; (2) that allocation of the monetary figure claimed to be due and owing under a mechanic’s lien is not required for a subdivided tract if the property was a single tract of land when the contract was entered into; and (3) that an exception to the allocation and dating rule exists when an excavator performs work only on raw land which is later subdivided because the rule imposes an impossible burden on an excavator.

We first address plaintiff’s argument that the mechanic’s lien filed by D & W correctly and adequately described the property against which the lien was asserted. Historically, mechanics’ liens were not recognized by the common law or in equity, but rather, they have always been statutory in nature. Since mechanics’ liens are in derogation of the common law, they must be strictly construed regarding the requirements upon which they depend (First Federal Savings & Loan Association v. Connelly (1983), 97 Ill. 2d 242, 246, 454 N.E.2d 314, 316; Schmidt v. Anderson (1911), 253 Ill. 29, 33, 97 N.E. 291, 292), and the liens are valid only if each of the statutory requirements is scrupulously observed. (First Federal Savings & Loan Association v. Connelly (1983), 97 Ill. 2d 242, 246, 454 N.E.2d 314, 316.) Additionally, where the interests of third parties will be affected, a stricter construction of the Mechanics’ Liens Act will be adhered to than what is followed in cases arising between the mechanic or materialman and the original owner. (Springer v. Kroeschell (1896), 161 Ill. 358, 367, 43 N.E. 1084, 1087.) Therefore, since all defendants in this appeal are third parties, we are required to strictly construe the Act.

The focus of plaintiff’s first argument is that because the contract between D & W and the original owner was entered into when the land was known by three perimeter metes and bounds descriptions, the lien attached to the property as described at that time. Therefore, plaintiff reasons, the three perimeter metes and bounds descriptions of the land were the proper descriptions to be used in the D & W lien claim.

While it is true that a mechanic’s lien attaches as of the date of the contract, it remains unenforceable against third parties unless the contractor complies with the prerequisites set forth in section 7 of the Mechanics’ Liens Act (Ill. Rev. Stat. 1981, ch. 82, par 7; First Federal Savings & Loan Association v. Connelly (1983), 97 Ill. 2d 242, 245, 454 N.E.2d 314, 316.) Under section 7, a claimant cannot enforce a claim for lien against an ultimate third party unless he has either filed the lien within four months after work completion with the recorder of deeds or has brought an enforcement suit against the third party. The filed lien must be verified and must consist of a brief statement of the contract, the balance due after allowing aU credits and a sufficiently correct description of the lot, lots or tract of land to identify same. (Ill. Rev. Stat. 1981, ch. 82, par. 7.) As a result, while a lien technically attaches to the property when the contract is entered into, it remains unenforceable until properly filed in compliance with section 7.

The record reflects that D & W entered into its contract to perform excavation work on February 8, 1978. At that time, the property was described by three perimeter metes and bounds descriptions. The plat which subdivided some of this property into 146 lots known as Charlemagne Subdivision Unit 1 was filed on April 21, 1978. The plat for the area presently known as Charlemagne Subdivision Unit 3 was filed November 3, 1978. Both plats designated the property according to its legal description. Although D & W filed its lien claim after the plats for Units 1 and 3 were recorded, the lien contained the three perimeter metes and bounds descriptions rather than the recorded legal descriptions as indicated by the plats.

Plaintiff argues that the metes and bounds descriptions used in the lien complied with section 7 because they sufficiently and correctly described the tracts of land to enable third party identification. We do not agree. The purpose of the description requirement is to protect third parties from purchasing or financing real property without being aware that it is encumbered. (O’Brien v. Krockinski (1893), 50 Ill. App. 456, 459.) To adequately protect the notice requirement due third parties, the general rule developed that where the interests of third parties are to be affected a stricter construction of the Act is required. (Springer v. Kroeschell (1896), 161 Ill. 358, 367, 43 N.E.

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Bluebook (online)
491 N.E.2d 1294, 142 Ill. App. 3d 601, 96 Ill. Dec. 834, 1986 Ill. App. LEXIS 2092, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steinberg-v-chicago-title-trust-co-illappct-1986.