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What is the Cap for Filing a Claim in Small Claims Court?

What is the Cap for Filing a Claim in Small Claims Court?

Full question:

I filed a mechanics lien on a house that I had built a room addition on the property for the owner. I had an oral agreement that I would be compensated for my labor at the time of her selling the property. Now she has sent me notice to file suit to collect on the lien. The lien is for $23,000.00. Is it to big for a small claims court?

Category: Contractors
Subcategory: Construction Liens
Date: 04/07/2025
State: Illinois

Answer:

Under Illinois law, a party to a written or oral contract can pursue its legal rights to payment by filing a lawsuit for breach of contract. In addition, if the written or oral contract is for construction work, a General Contractor or Subcontractor will also have the right to seek payment by filing, and suing to foreclose on, a mechanics lien. This right is granted under the Illinois Mechanics Lien Act for work on private property. Suit must be commenced within 30 days upon written demand of the owner of the real estate. If suit is not commenced within said time period to enforce the lien, the lien shall be forfeited. Such service may be by registered or certified mail, return receipt requested, or by personal service. (770 ILCS 60/34). Suit is filed in the circuit court of the county where the lien is recorded. Any individual, business or corporation may bring a small claims suit for the recovery of money when the amount requested isn't more than $10,000.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How to defend against a lien?

To defend against a lien, you can challenge its validity by proving that the work was not completed, was not authorized, or that the lien was filed improperly. You may also negotiate with the lien claimant to resolve the dispute. If necessary, you can file a lawsuit to contest the lien in court. It's important to gather all relevant documentation, such as contracts and correspondence, to support your defense. Consulting an attorney can provide guidance tailored to your situation.

How long do construction liens last in Nebraska?

In Nebraska, a construction lien generally lasts for two years from the date the work was completed or the materials were supplied. If a lawsuit to enforce the lien is not filed within this timeframe, the lien will expire. It's important to ensure timely action to protect your rights under the Nebraska Construction Lien Act (Neb. Rev. Stat. § 52-140).

How do I fight a construction lien?

To fight a construction lien, you can file a lawsuit to contest its validity. You may argue that the work was not performed as agreed, or that the lien was filed incorrectly. It's crucial to gather evidence, such as contracts and communications, to support your case. Additionally, negotiating with the lien claimant may lead to a resolution without going to court. Consulting a legal professional can help you navigate this process effectively.

How do I contest a construction lien?

To contest a construction lien, you should file a lawsuit in the appropriate court, typically where the property is located. In your lawsuit, you can argue that the lien is invalid due to reasons such as lack of proper notice, improper filing, or failure to meet contractual obligations. Be sure to gather all supporting documents, like contracts and payment records, to strengthen your case. Seeking legal assistance can help ensure your rights are protected.

Can someone put a lien on your property without a contract?

Yes, in some cases, a lien can be placed on your property without a formal written contract. For instance, if work was performed or materials were supplied with the expectation of payment, a lien may be valid even if there was no written agreement. However, the specifics can vary by state law. It's essential to understand your rights and obligations under local statutes regarding mechanics liens.

Which of the following could not file a mechanic's lien?

Generally, individuals or entities that did not provide labor or materials for a construction project cannot file a mechanic's lien. This includes subcontractors or suppliers who were not directly involved in the work or who did not have an agreement with the property owner. Each state has specific requirements regarding who can file a lien, so it's important to review local laws for clarity.