Broker lien rights are now 32+ years old in Illinois, yet it seems that property owners aren’t bothered by the recording of a lien on their properties anymore. That, in itself, is disappointing. Consider the following facts on a collection matter I just concluded:
Last spring my client, representing an existing tenant, negotiated a long-tern office lease renewal pursuant to a written commission agreement. The commission was substantial, just north of $100,000. The commission wasn’t paid, and a series of promises and excuses followed over a period of months. Because lien rights expire if not timely exercised, I recommended and was directed to prepare, record, and serve notice of the recorded broker lien, which of course, I did. Months passed with more promises, no payment — you know the story.
I recommended to my client that perhaps the lien wasn’t taken seriously, so drafting a lien foreclosure complaint would be the next step. Upon authorization, I prepared the complaint for my client’s review and approval and sent the complaint to the property owner’s counsel (the same gentleman who had been the conduit of the false promises of payment over the past few months). I added that he should note that the mortgage lender would be a defendant in the lawsuit. His response was terse: “Send wire instructions.” I warned my client that it costs nothing to ask for wire instructions, likely a device to build false hope and buy some more time before the suit was filed. However, hope springing eternal, I prepared a statement of what was owed, including interest at the statutory rate from the date the commission was invoiced, plus accrued attorney fees. I shared my calculations with the landlord’s attorney, along with a promise to provide a recordable release of lien in exchange for full payment. I then calendared this for review in 7 days, expecting to have to file the lawsuit and proceed.
Mirabile dictu (Latin for “Wonderful to tell”), the payment arrived the very same day I had sent my statement. Paid in full. File closed. Story over. Happy client, happy and proud attorney — done.
But then, I began to reflect on this. The lien did little on its own just as several other broker liens you and I have recorded, not prompting payment until or unless the property was to be sold and title cleared, or unless the client spent the money on the actual lawsuit. Have we come so far in 32 years that the broker lien itself doesn’t move the needle? Owner, have you no shame that it is public record that you have failed to pay the very broker who enhanced the value of your building? Is this the tale you will have—— a disappointed lien-wielding broker tell about you and your building? Not so wonderful to say, it seems that the lien itself securing a lease commission just doesn’t pack the punch it once did. So, the lesson learned, dear readers, is that in these difficult times, view your lien for a lease commission to be a necessary first step. ut don’t be surprised if you and your attorney have to go further and prepare (and possibly file) that broker lien foreclosure suit. Desperate times call for desperate measures.
And to quote my beloved father, as I often do, “If there is going to be a fight, throw the first punch, and make it a good one, it might just end the fight right there. As always, thanks Dad.