National City Mortgage v. Hillside Lumber
2012 IL App (2d) 101292
Ill. App. Ct.2012Background
- National City Mortgage forecloses on property securing construction loan by Jakimows.
- Hillside Lumber records a mechanic’s lien for materials, claiming $141,188.10 value and $65,821.93 due.
- Lien dated March 5, 2008; no accompanying proof of mailing or service list included with lien.
- Hillside counters by filing a cross-claim to foreclose its lien and affidavits claiming mailed notice by certified mail.
- Plaintiff asserts it did not receive notice of the lien; Hillside lacks documentation of mailing (no white card, envelope copy, or green card).
- Trial court granted plaintiff summary judgment in its favor; Hillside appeals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did Hillside’s notice comply with §24(a) by mailing and recipient receipt considerations? | Plaintiff did not receive notice; mailing alone not proven effective. | Section 24(a) requires notice by certified mail, mailing time suffices, regardless of receipt. | Notice must be received; mailing alone insufficient. Court affirms summary judgment for plaintiff. |
Key Cases Cited
- Parkway Bank & Trust Co. v. Meseljevic, 406 Ill. App. 3d 435 (2010) (statutory construction; remedial purpose after strict compliance)
- J&B Steel Contractors, Inc. v. C. Iber & Sons, Inc., 246 Ill. App. 3d 523 (1993) (actual receipt is critical to notice under mechanics lien act)
- Matthews Roofing Co. v. Community Bank & Trust of Edgewater, 194 Ill. App. 3d 200 (1990) (notice defects not de facto deprivation if actual notice occurred)
- Devine v. United States Currency, 199 Ill. 2d 142 (2002) (notice perfected upon mailing under express procedures; receipt not required)
- Watson v. Auburn Iron Works, Inc., 23 Ill. App. 3d 265 (1974) (emphasizes actual notice considerations in lien context)
