Christopher B. Burke Engineering, Ltd v. Heritage Bank of Central Illinois
43 N.E.3d 963
Ill.2015Background
- Burke Engineering contracted with Glen Harkins (while Carol Schenck still owned the land) to survey and prepare a subdivision plat and related engineering work to enable development; some work began before closing and continued after.
- Burke Engineering recorded a final plat, conducted wetlands survey, and planned roads/utilities; one house was built; Burke invoiced $109,549.69 and was unpaid when work stopped in Feb. 2009.
- Burke recorded a mechanics lien and sued to foreclose; Heritage Bank held a mortgage on the property and moved for summary judgment asserting the lien was invalid under section 1 of the Mechanics Lien Act.
- The trial court held the services were not an "improvement" and that the owner had not induced or knowingly permitted the contract; the appellate court affirmed; Burke appealed to the Illinois Supreme Court.
- The Supreme Court considered (1) whether professional engineering/surveying services that enable development constitute a lienable "improvement" under 770 ILCS 60/1, and (2) whether Schenck "knowingly permitted" Harkins to contract while she owned the property, which would make the lien senior to Heritage Bank.
Issues
| Issue | Burke Engineering's Argument | Heritage Bank's Argument | Held |
|---|---|---|---|
| Whether Burke's surveying/platting/engineering services qualify as an "improvement" under §1(b) of the Mechanics Lien Act | Services were performed "for the purpose of improving" the land (platting, surveying, planning for roads/utilities) and are lienable even if no physical construction was completed | Professionals are lienable only if services relate to physical acts like raising/lowering/removing houses (argues comma/phrase limits scope) | Held: Services performed for the purpose of improving property are lienable; statute is not limited to house-raising/removal and a subdivision plat is done for the purpose of building/improving the land. |
| Whether the owner (Schenck) "knowingly permitted" Harkins to contract so that the lien attached while she was owner | Owner's knowing permission can be shown by more than receipt of benefit; facts are disputed as to Schenck's knowledge and opportunity to object | Schenck did not authorize, accept benefit, or induce the work; she lacked knowledge of contract details and did not consent | Held: Material factual issues exist about whether Schenck knowingly permitted Harkins to contract; summary judgment for Heritage Bank was inappropriate; remand to resolve those facts. |
Key Cases Cited
- Freeman v. Rinaker, 185 Ill. 172 (1900) (architect entitled to lien for plans though construction never began)
- Crowen v. Meyer, 342 Ill. 46 (1930) (services rendered for purpose of improving property support lien even absent actual construction)
- LaSalle Bank Nat’l Ass’n v. Cypress Creek 1, LP, 242 Ill. 2d 231 (2011) (statutory interpretation principles; Mechanics Lien Act protective purpose)
- Mostardi-Platt Assocs., Inc. v. Czerniejewski, 399 Ill. App. 3d 1205 (2010) (surveying done merely to decide whether to buy was not for purpose of improving land)
- Contract Development Corp. v. Beck, 255 Ill. App. 3d 660 (1994) (declining to deny lien where owner’s breach left contractor uncompensated)
