MEP Construction, LLC v. Truco MP, LLC
MEP Construction, LLC v. Truco MP, LLC
Opinion
*115 ¶ 1 Plaintiff MEP Construction, LLC (MEP), filed a complaint against defendants which included Truco MP, LLC (Truco) and Randhurst Improvements, LLC (Randhurst). MEP's complaint contained three counts: (1) foreclosure of a mechanic's lien; (2) breach of contract; and (3) quantum meruit . Truco moved for partial summary judgment on the mechanic's lien count pursuant to section 2-1005(a) of the Code of Civil Procedure (Code) ( 735 ILCS 5/2-1005(a) (West 2016) ). Truco argued that MEP's lien, which was 51% more than the amount actually owed it, amounted to constructive fraud. The circuit court granted Truco's motion, and MEP now appeals the court's order. We affirm.
¶ 2 BACKGROUND
¶ 3 On August 21, 2017, MEP filed its three-count "complaint to foreclose upon mechanic's lien and other relief." The complaint alleged that, in April 2014, MEP and Truco entered into a verbal contract in which MEP would provide "construction management and related services" to Truco for the purpose of building out Truco's restaurant located in Mount Prospect, Illinois. The complaint further alleged that Truco leased the restaurant property from Randhurst, the owner. 1 Under the contract, MEP offered to perform work for a cost of $ 791,781.16, which Truco accepted. The parties later agreed to have MEP perform additional work of about $ 80,000.
¶ 4 MEP further alleged that it "fully performed" its contractual obligations as of May 27, 2015. MEP claimed that it had completed work worth $ 791,781.16 under the contract, but Truco only paid $ 612,447.15 and refused to pay anything further. On September 24, 2015, MEP recorded *116 *1134 a mechanic's lien with the Cook County Recorder of Deeds. The lien is attached as an exhibit to the complaint. The lien, recorded as document No. 1526757458, lists Truco, Randhurst, and Randhurst Shopping Center, LLC, as defendants and indicates a claim in the amount of $ 251,870.45 owed only to MEP.
¶ 5 On October 27, 2017, Truco filed a motion for partial summary judgment on the mechanic's lien count pursuant to section 2-1005(a) of the Code. Truco argued that MEP's mechanic's lien of $ 251,870.45 was constructively fraudulent because MEP only performed $ 123,134.45 of work, and that the remaining amount was performed by various subcontractors at the property "with which MEP had no contract and for which MEP was not responsible for paying." Truco attached the August 2015 sworn statement of MEP's president, Jason Morales, that MEP had submitted to Truco. The statement indicated that the $ 251,870.45 amount in the mechanic's lien comprised the following amounts: $ 123,134.45 payable to MEP; $ 78,585 payable to V & V Development, Corp. (V & V); $ 50,000 payable to Zivak Plumbing, Inc. (Zivack); and $ 150 payable to Fox Valley Fire & Safety.
¶ 6 Truco further included various facts developed during the discovery process. 2 Truco had issued a document request to MEP asking for all documents showing all payments that MEP made for work performed either "by MEP or at the direction of MEP." MEP responded, however, that all "contractors, subcontractors and material were paid directly by Truco." In addition, Truco made a discovery request for all contracts between MEP and "any and all contractors, sub-contractors or other persons with whom MEP contracted for purposes of performing work" at the property. MEP's response, however, was that all contractors and subcontractors "contracted directly with Truco" and were paid directly by Truco. Morales signed these responses under verification pursuant to section 1-109 of the Code ( 735 ILCS 5/1-109 (West 2016) ). Finally, Truco included an October 13, 2017, letter its attorney sent to MEP's attorney. The letter explained the discrepancies noted above and suggested that the statements in the mechanic's lien constituted constructive fraud. The letter demanded that MEP voluntarily dismiss the mechanic's lien count and release the lien.
¶ 7 MEP's response argued that, "[b]y agreement between MEP and Truco, Truco made payments to the contractors directly, but the contractors submitted waivers to MEP for payment and MEP sought payment for all of the contractors from Truco on their behalf at all times." MEP attached Morales's affidavit, which attested to that fact. MEP further acknowledged its statement in the interrogatories that it did not contract directly with the other contractors and that Truco directly paid them, but MEP nonetheless argued that "the overwhelming majority of the facts, including Truco's verified answers to Zivak and V & V's complaint[,] indicate that MEP may have in fact acted as a general contractor in some capacity."
¶ 8 On January 31, 2013, the circuit court held a hearing on Truco's motion to compel MEP to respond to its discovery requests. MEP's counsel explained to the court that there were no documents substantiating MEP's assertion that it was responsible for ensuring Truco paid the various contractors. Instead, MEP sought payment via text message or e-mail. The *1135 *117 court recounted MEP's answers that Truco directly paid MEP and all contractors and that Truco also directly paid for all materials. The court stated, "I read this and it sounds as if MEP had nothing to do with those other individuals." MEP's counsel pointed out that "all of these other people"-such as the electrician and plumber-were "his [ i.e. , Morales's] people that he brought in." The court, however, replied that "Bringing the plumber and *** the electrician in doesn't automatically make them subs," with which MEP's counsel agreed. Finally, MEP's counsel also agreed with the court's characterization that counsel was saying "basically, 'My pockets are emptied as to anything that I know other than what I've supplied.' "
¶ 9 On February 27, 2018, the circuit court granted Truco's motion for summary judgment, dismissed the mechanic's lien count with prejudice, and found, pursuant to Illinois Supreme Court Rule 304(a) (eff. Mar. 8, 2016), that "this is a just and final order with no cause to delay enforcement or appeal." This appeal followed.
¶ 10 ANALYSIS
¶ 11 MEP contends that the circuit court erroneously granted Truco's motion for summary judgment. Specifically, MEP argues that the court improperly "grasped onto the single statement that MEP made in its production request answer[:] that the subcontractors contracted with Truco." MEP further asserts that, if the court's ruling stands, then it will "necessarily" establish under the related lawsuit (filed by V & V and Zivak against MEP and the other defendants) that "Truco is under contract with Zivak and V & V and [thus] liable to them for whatever amounts they can prove they are owed." Finally, MEP complains that the court reached its conclusion "based upon very few facts produced during written discovery." MEP asserts that oral discovery, which had not taken place prior to summary judgment, "most likely would" establish whether MEP was either (1) a general contractor, which would allow it to file a mechanic's lien for all amounts owed to itself and the subcontractors, or (2) a construction manager, which it stated in its sworn statements.
¶ 12 Summary judgment is appropriate "if the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." 735 ILCS 5/2-1005(c) (West 2016). Summary judgment is a drastic measure and should only be granted when the moving party's right to judgment is "clear and free from doubt."
Outboard Marine Corp. v. Liberty Mutual Insurance Co.
,
¶ 13 However, "[s]tatements in an affidavit which are based on information and belief or which are unsupported conclusions, opinions, or speculation are insufficient to raise a genuine issue of material fact."
Outboard Marine
,
¶ 14 The central issue in this case concerns constructive fraud in the filing of a mechanic's lien. The Mechanics Lien Act (the Act) ( 770 ILCS 60/1
et seq.
(West 2016) ) is a comprehensive statutory enactment that outlines the rights, responsibilities, and remedies of parties to construction contracts, including owners, contractors, subcontractors, and third parties.
Cordeck Sales, Inc. v. Construction Systems, Inc.
,
¶ 15 Section 7 of the Act provides in relevant part that no lien "shall be defeated to the proper amount thereof because of an error or overcharging on the part of any person claiming a lien therefor under this Act, unless it shall be shown that such error or overcharge is made with intent to defraud." 770 ILCS 60/7 (West 2016). "Section 7 is intended to protect an honest lien claimant who makes a mistake rather than a dishonest claimant who knowingly makes a false statement."
Peter J. Hartmann Co. v. Capitol Bank & Trust Co.
,
¶ 16 In this case, construing the pleadings, depositions, admissions, and affidavits strictly against Truco and liberally in favor of MEP, as we must (see
Outboard Marine
,
¶ 17 Moreover, MEP's reliance upon
Roy Zenere Trucking & Excavating, Inc. v. Build Tech, Inc.
,
¶ 18 MEP also argues that the circuit court's summary judgment ruling, if affirmed, would constitute a ruling in favor of V & V and Zivak in their related lawsuit. This argument fails for multiple reasons. First, as Truco points out, MEP failed to raise this argument in the court below; accordingly, it is forfeited. "It is well settled that issues not raised in the trial court are deemed waived and may not be raised for the first time on appeal."
Haudrich v. Howmedica, Inc.
,
¶ 19 Finally, we reject MEP's complaint that the circuit court erroneously reached its conclusion because there was an insufficient amount of discovery at the time of summary judgment and oral discovery "most likely would" shed light on whether MEP was a general contractor or a construction manager. Illinois Supreme Court Rule 191(b) (eff. Jan. 4, 2013) provides in part as follows:
"If the affidavit of either party contains a statement that any of the material facts which ought to appear in the affidavit are known only to persons whose affidavits affiant is unable to procure ***, naming the persons and showing *1138 *120 why their affidavits cannot be procured and what affiant believes they would testify to if sworn, with his reasons for his belief, the court may make any order that may be just, either granting or refusing the motion, or granting a continuance to permit affidavits to be obtained, or for submitting interrogatories to or taking the depositions of any of the persons so named, or for producing documents in the possession of those persons or furnishing sworn copies thereof. The interrogatories and sworn answers ***, depositions ***, and sworn copies of documents *** shall be considered with the affidavits in passing upon the motion."
¶ 20 In essence, " Rule 191(b) permits a party filing pleadings pertaining to summary judgment *** to submit an affidavit stating that material facts are known only to persons whose affidavits the affiant has been unable to secure by reason of hostility or otherwise."
Cordeck
,
¶ 21 Here, MEP did not file a Rule 191(b) affidavit requesting more time or more discovery. Instead, it merely complains that the circuit court granted summary judgment even though depositions had not been completed. MEP, however, did not ask the court to put anything on hold pending completion of those depositions, nor does the record reveal that any depositions had been (or were likely to be) scheduled. We further note that counsel for MEP agreed with the court that it had "emptied its pockets" with respect to the evidence it had that would support its mechanic's lien that included other contractors' work. Since MEP failed to explain to the circuit court, via a Rule 191(b) affidavit, the material facts that MEP could not secure, it may not complain on appeal that the discovery process was limited and that we must reverse the circuit court's decision. See
Cordeck
,
¶ 22 CONCLUSION
¶ 23 The circuit court did not err in granting defendants' motion for partial summary judgment on the mechanic's lien foreclosure count. Accordingly, we affirm the court's judgment.
¶ 24 Affirmed.
Justices Cunningham and Harris concurred in the judgment and opinion.
MEP's complaint alleged that, at the time of contract formation, the property was owned by Randhurst Shopping Center, LLC, but that entity conveyed the property to Randhurst in June 2015.
These discovery matters arose in conjunction with a related lawsuit that V & V and Zivak filed against MEP and the other defendants in this case. The circuit court consolidated that related case (16-CH-6729) into the case at issue in this appeal (16-CH-6734).
Case-law data current through December 31, 2025. Source: CourtListener bulk data.