Constructive fraud kills mechanic’s lien

Commercial Litigation

By Paul B. Porvaznik

Paul B. Porvaznik is an attorney at Davis, McGrath LLC and practices primarily in the areas of commercial litigation, landlord-tenant law, mechanic’s liens and post-judgment enforcement.

Posted May 9, 2016 2:47 PM

A recent Illinois case (Father & Sons Home Improvement II Inc. v. Stuart, 2016 IL App (1st) 143666) starkly illustrates the negative ramifications of inflating a mechanic’s lien or of misstating the completion date of construction work.The contractor in that case not only had its lien defeated but had to pay more than $40,000 of the property owner’s and lender’s attorney fees.The basis for the court’s ruling was the constructive fraud concept.The purpose of the Mechanic’s Lien Act is to …

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