Constructive Fraud In Mechanics Lien: Why the Contractor Must Accurately State Its Completion of Wor

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 mechanics lien or of misstating the completion date of construction work. The contractor in that case not only had its lien defeated but it also had to pay over $40K in the property owner’s and lender’s attorneys’ fees. The basis for the court’s ruling was the constructive fraud concept. The purpose of the Illinois mechanics lien act is to require someone with an interest in real property to pay for property improvements or benefits he encouraged by his conduct. Section 7 of the Lien Act provides that no lien will be defeated becau

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