Stiffed Sub Sues Contractor For Unpaid Work At New Development; Slaps Liens, Seeks Foreclosure On Residents' Homes

In Pingree Grove, Illinois, The Courier News reports:

• A subcontractor is suing not only developer DRH Cambridge Homes for improvements made at its Carillon subdivision, but also home­owners, according to a lawsuit filed with the Kane County Circuit Clerk's Office. VCNA Prairie Inc. seeks $164,856 against D.R. Horton, Neptune Construction Co. and Cambridge Homes for subcontracting work it performed dating back to February 2007, the lawsuit states.

***

• "What this is about is Cambridge and its customers are caught in a dispute between sewage contractors and their suppliers," said Steve Goodman, a Cambridge vice president and general counsel. [...] The lawsuit lists names of people -- including homeowners and the Cambridge Lakes Homeowners Association -- who have some right, title or interest in the premises sought to be foreclosed.(1)

For more, see Subcontractor sues construction company, subdivision.

(1) Stories like these are a reminder of the importance of obtaining a title insurance policy when buying a home, especially with new construction, where there is the added risk of liens being placed on the home after the closing of title if all of the appropriate lien releases have not been obtained from contractors, and their subs and suppliers. (The homebuyer may also be well advised to steer clear from purchasing the insurance from the developer's "in-house" title agent, who may be controlled by, or otherwise "in bed with," the developer). In this situation, it's the insurance company's job to step in on the homebuyer's behalf and both defend the title to the home, and foot the bill for the legal costs incident thereto. StiffingContractorsTheta