Payment Bond Claims
The Illinois Bond Act applies to public construction projects. The 180 day notice is a condition precedent to the right to maintain an action under the Bond Act. That means that before you have the right to file an action you must give timely notice.
Any person having a claim for labor, material under the Bond Act will not have any such right of action unless he filed a verified notice of said claim with the officer, board, bureau or department awarding the contract, within 180 days after the last item or work or the furnishing of the last item of materials, and shall have furnished a copy of such verified notice to the contractor within 10 days of filing of the notice with the agency awarding the contract.
Compliance with the Bond Act’s six month post project completion limitations period is a jurisdictional requirement. Without having jurisdiction, the Court can not entertain your claim. The Act clearly states that no action shall be brought until the expiration of 120 days after the date of the last item of work or the furnishing of the last item of work or the furnishing of the lost item or materials, nor shall any action of any kind be brought later than 6 months after the acceptance by the State of political subdivision thereof of the building project or work.
General contract law is applied to bonded private construction projects. It is important as a subcontractor to beware of the contractual limitations to bring an action against a general contractors bond.
Short Sale Basics
In these tough economic times, many people consider getting involved in a short sale of real property. However, most do not understand what it takes to close short on a piece of property. The term “short sale” for real estate means that the sale proceeds are less than the balance of the mortgage or mortgages for that real estate.
It takes a lot of time and effort to accomplish a successful short sale. Cooperation and hard work is needed. The seller and lender are both in tough positions. The seller can no longer afford their home and can not pay the mortgage. The lender has no desire to take the home or go through costly foreclosure proceedings.
The seller has to start the ball rolling by finding the right department and person within their lender to assist in this process. It takes many phone calls and letters to get a person with authority from the lender. Also, do not make the mistake of trying to go through the lenders mortgage work out department if you really just need to get out of the property and mortgage.
The seller has to provide the lender with many documents before lenders even consider the option of a short sale. Some of these documents include: (1) preliminary net sheet, (2) hardship letter, (3) proof of income and assets, (4) copies of bank statements, (5) comparative market analysis, and (6) letter of authorization.
The seller should contact a real estate agent, accountant and attorney. Many agents will reduce their commission amount on a listing that needs to sell short. Accountants can explain and go over the tax ramifications (which vary for each individual). Attorneys can help negotiate with the lender and buyer, determine if the loan qualifies for a deficiency judgment, work within foreclosure proceeding, and close the transaction.
Be aware that the lender is not in a hurry to agree to a short sale. The lender will take as much time as it wants and will periodically ask for more information. Lenders will only agree to a short sale if it makes financial sense.
The buyer has to have a lot of patience, be willing to cooperate with the lender and, most importantly, have the money to purchase the real property.
Construction Claims – Secure Your Right To Get Paid
A. Perfecting a Lien Claim – Private Construction Projects.
• Contractors bringing a claim against lenders, purchasers and encumbrances must (1) record claim or bring suit within 4 months of the last day completed work, and (2) file suit within 2 years. Contractors bringing a claim against the owner must file suit within 2 years.
• Subcontractors bringing a claim against owner occupied single family residents must give notice of lien to the occupant of the resident within 60 days of first furnishing materials or labor. Subcontractors bringing a claim against owner, lender, purchaser and encumbrances must (1) give notice of lien within 90 days of the last day completed work, (2) record claim or bring suit within 4 months of the last day work completed, (3) if no notice is given, subcontractor has lien for amount shown on contractor’s sworn statement; and (4) file suit within 2 years.
• Demand for suit. Any party of interest can demand that the claimant file suit to enforce their lien within 30 days or the lien is forfeited.
• Private construction lien claims attach to the real property.
• Time Requirements are Jurisdictional; thus, if you miss a date, the courts have no authority to enforce your rights.
B. Perfecting a Lien Claim – Public Construction Projects
• There is no time period for providing Notice of Lien.
• Give written notice of lien to public entity.
• For State Project – must provide sworn statement of claim
• Upon receiving the Notice, the public entity must hold all monies or other form of payment due the general contractor for 90 days. If no suit is filed within 90 days the public entity can release the money. If suit is filed within the 90 days the public entity must hold the funds until the final adjudication of the suit or may deposit the funds with the clerk of the court where the suit was filed.
• If the public entity no longer has any contract funds at the time it receives the notice, then there is no recovery.
• Must file suit for accounting within 90 days of giving Notice of Lien. The public entity does not have to be a party to the lawsuit. The state of Illinois cannot be a defendant, but other public entities may.
• On State Projects, suit shall be commenced and a copy of the complaint must be delivered to the Director not less than fifteen days prior to the date when the appropriation from which the money is to be paid will lapse.
• A public lien is a claim against money, bonds, warrants, or other means of payment from the public body.
• Mechanics lien’s are not permitted against Federal Buildings.
C. The Miller Act governs Federal construction project.
• Every person who furnished labor or material has a right to sue under the Miller Act against a payment bond upon the expiration of 90 days after his last day of work.
• A sub-subcontractor must provide the general contractor written notice of its Miller Act claim within 90 days of his last day of work.
• The Miller Act provides that no suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied.
• The Miller Act’s requirement of bringing suit within the prescribed time is a condition precedent to the right to maintain the action.
GAIN EVERYONE’S CONSENT BEFORE RECORDING CONVERSATIONS IN ILLINOIS.
People are confused about the eavesdropping laws. The eavesdropping laws vary from state to state. This post only addresses the law in Illinois. There are exceptions to the law for police and law enforcement. I represent individuals and small business owners.
For the average person, the law is very clear. Do not record conversations with other people without their consent. That means every party that is part of the conversation must consent to the recording. If there are four people having a conversation all four must consent to it being recorded. Two people out of the four parties to a conversation can not consent to the conversation being recorded.
There are two very important reasons for either gaining everyone’s consent or not recording the conversation at all. First, the unconsented recording of a conversation will never be admissible in any civil or criminal procedure. Second, that unconsented recording is a Class 4 felony (1-3 years jail time) for the first offense, a Class 3 felony (3-7 years jail time) for subsequent offenses, and a Class 1 felony (4-15 years jail time) if recording a police officer, state’s attorney, assistant state’s attorney, attorney general, assistant attorney general or judge.
The term conversation under the eavesdropping statute means any oral communication between two or more persons regardless of whether one or more of the parties intended their communication to be of a private nature under circumstances justifying that expectation. Thus, people do not even need the expectation of privacy. If you want to record the conversation, you have to ask everyone to agree to the recording.
A basic way a person commits eavesdropping is when he intentionally uses a eavesdropping device for the purpose of hearing or recording all or any part of any conversation or intercepts, retains, or transcribes electronic communication unless he does so with the consent of all of the parties to such conversation or electronic communication.
Remember, you are not helping yourself or your situation to record a conversation without everyone’s consent.
New Law Practice in McHenry
Hello. My name is Genevieve M. Lynott. I am the owner and proprietor of the Law Office of Genevieve M. Lynott. I am a trial attorney and a mediator practicing out of McHenry Illinois who is here to help you. Since this is my first blog, I thought this would be a great opportunity to introduce myself. Read more