{"id":28689,"date":"2014-09-25T06:12:32","date_gmt":"2014-09-25T12:12:32","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=28689"},"modified":"2014-09-24T09:12:54","modified_gmt":"2014-09-24T15:12:54","slug":"liens-intentionally-incorrect-information-may-still-enforceable","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/liens-intentionally-incorrect-information-may-still-enforceable\/","title":{"rendered":"Liens With Intentionally Incorrect Information May Still Be Enforceable"},"content":{"rendered":"<p>Adam L. Gill and Jeffrey L. Hamera &#8211; Duane Morris &#8211; September 8, 2014<\/p>\n<p>Generally, lien waivers that contain fraudulent information are not enforceable. However, not all intentionally misleading statements are fraudulent. The crux of the issue is whether a lien waiver simply states that the subcontractor has been paid a specific amount or whether the subcontractor claims that the work completed is worth the amount stated in the waiver.<\/p>\n<p>The Illinois Appellate Court addressed this issue briefly in Casablanca Lofts, LLC v. Blauvise (2014 Ill. App. Unpub. Lexis 1377 (1st Dist. June 26, 2014)).\u00a0 In arbitration, prior to litigation, the developer\/owner of a condominium project, Casablanca Loft, discovered that the electrical subcontractor had submitted three lien waivers totaling $135,000 and had been paid $135,000.\u00a0 Id. at \u00b66.\u00a0 However, the electrical subcontractor had only provided material and labor with a value of $19,000.\u00a0 Id.\u00a0 Casablanca Lofts then filed a complaint against the electrical subcontractor alleging that it fraudulent misrepresented the amount owed for labor and materials.\u00a0 Id. at \u00b6\u00b65, 7.\u00a0 The trial court found that the electrical subcontractor and its owner did not make false statements in the lien waivers, because &#8220;the mechanics lien waivers don&#8217;t say anything about the amount of work done&#8230;.&#8221;\u00a0 Id.\u00a0 at \u00b612.\u00a0 The Illinois Appellate Court affirmed the trial court&#8217;s ruling without comment on the issue.<\/p>\n<p>This case provides a sobering reminder to owners and general contractors.\u00a0 Obtaining lien waivers is not merely a clerical requirement.\u00a0 Lien waivers are a critical element of the construction payment process.\u00a0 The lien waivers provided by the Casablanca Lofts subcontractor did not provide a statement regarding the value of the work actually performed or provide a percentage of work completed.\u00a0 Owners and general contractors should require that subcontractors provide lien waivers prior to disbursing funds.\u00a0 Owners, or their agents, and general contractors should examine lien waivers to verify that the amount stated in the lien waivers conform to the work actually performed.\u00a0 Finally, in order to avoid overpaying subcontractors, lien waivers should indicate the value or percentage of work actually performed.<\/p>\n<p>via <a href=\"http:\/\/www.mondaq.com\/unitedstates\/x\/338760\/Building+Construction\/Liens+with+Intentionally+Incorrect+Information+May+Still+Be+Enforceable\">Liens With Intentionally Incorrect Information May Still Be Enforceable &#8211; Real Estate and Construction &#8211; United States<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Adam L. Gill and Jeffrey L. Hamera &#8211; Duane Morris &#8211; September 8, 2014 Generally, lien waivers that contain fraudulent information are not enforceable. However, not all intentionally misleading statements are fraudulent. The crux of the issue is whether a lien waiver simply states that the subcontractor has been paid a specific amount or whether&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/liens-intentionally-incorrect-information-may-still-enforceable\/\">Continue reading <span class=\"screen-reader-text\">Liens With Intentionally Incorrect Information May Still Be Enforceable<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[8],"tags":[2919,76],"class_list":["post-28689","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-rights","tag-lien-waiver","tag-mechanics-lien","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Liens With Intentionally Incorrect Information May Still Be Enforceable - Advise &amp; Consult, Inc.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/liens-intentionally-incorrect-information-may-still-enforceable\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Liens With Intentionally Incorrect Information May Still Be Enforceable - Advise &amp; Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Adam L. Gill and Jeffrey L. Hamera &#8211; Duane Morris &#8211; September 8, 2014 Generally, lien waivers that contain fraudulent information are not enforceable. However, not all intentionally misleading statements are fraudulent. 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