Topic:
Mechanics Lien Act
(Sandack, R-Downers Grove; Harmon, D-Oak Park) allows a lien claimant to proceed directly against a bond substituted for the lien on the owner’s real estate or funds. The court may dismiss parties other than the principal, surety of the bond, and the lien claimant. Defenses against the lien claimant are limited to those that could be asserted by the principal or contracting owner. The “prevailing party” in an action brought under this new subsection shall be awarded its attorney fees. The “prevailing party” is defined as a lien claimant that recovers at least 75% of the amount of its lien claim, or the principal of the bond if the lien claimant recovers less than 25% of the amount of its lien claim. The attorney’s fees for a lien claimant that is a prevailing party is limited to the amount remaining on the bond after the payment of the claim and interest, and the attorney’s fees awarded to a bond principal shall be limited to 50% of the amount of the lien claim. Passed both chambers.