Liens With Intentionally Incorrect Information May Still Be Enforceable

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. 

The Illinois Appellate Court addressed this issue briefly in Casablanca Lofts, LLC v. Blauvise (2014 Ill. App. Unpub. Lexis 1377 (1^st Dist. June 26, 2014)).  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.  Id. at ¶6.  However, the electrical subcontractor had only provided material and labor with a value of $19,000.  Id.  Casablanca Lofts then filed a complaint against the electrical subcontractor alleging that it fraudulent