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Cyclonaire v. ISG Riverdale
Cyclonaire was a subcontractor who did work at ISG Riverdale's steel plant in Riverdale, Illinois. The case opinion decides that Cyclonaire failed to comply with the 90-day notice requirement for completing a lien under Illinois law. One of the issues was what sort of work is sufficient to count as "substantial," in order to create the "date of last substantial work" under Section 24 of the Illinois Mechanics Lien Act.
Cyclonaire supplied equipment for airflow on conveyors in the plant, delivering the last piece of equipment on December 31, 2003. However, it had employees doing work in the plant on February 6, 2004. The sticky question was whether the work by those employees was "substantial" to the contract, or warranty work which would not extend the 90-day period.
There was testimony that Cyclonaire did not bill for the time, because they considered it warranty work. The contract also had an extensive warranty clause. Held: the work done was warranty work, not substantial to the contract, thus, Cyclonaire's lien came too late and was invalid.
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