tag:blogger.com,1999:blog-3559042663939384532024-03-13T08:08:43.389-07:00Lien Law Online (http://www.lienlawonline.com)Lien Law Online provides:
Notification of important changes in state mechanics lien laws - via Lien Law eLerts.
Comprehensive Information On Mechanics Lien Laws of all 50 states and the District of Columbia, written by leading practitioners.
Downloadable Forms in both Microsoft Word and Adobe Acrobat/PDF.
Invaluable tips and FAQ's
Informative strategy discussions that let you take the maximum advantage of the mechanics lien laws.
http://www.lienlawonline.comlienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.comBlogger79125tag:blogger.com,1999:blog-355904266393938453.post-4252450256851012722021-01-22T12:31:00.002-08:002021-01-22T12:31:50.274-08:00Lien Law Online E-lert 1-22-2021 - Georgia<p> </p><p class="MsoNormal">Georgia Implements Significant Changes in the Effect of and
Requirements for Lien and Bond Waivers<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Significant changes in Georgia’s Lien Law and its statutory mandated
Lien Waiver forms went into effect January 1, 2021.<span style="mso-spacerun: yes;"> </span>The changes, enacted due to industry outcry
over the effect of the Georgia Court of Appeals <i>ALA Construction Services,
LLC v. Controlled Access, Inc.</i> decision, clarifies that waivers signed
after January 1, 2021 do not waive contract rights but only lien and bond
rights after the prescribed period for withdrawal.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The revised law makes other significant changes, including:<o:p></o:p></p>
<p class="MsoListParagraphCxSpFirst" style="margin-left: 85.7pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]-->The filing and mailing of an affidavit of
nonpayment is the only way to withdraw a waiver and release.<span style="mso-spacerun: yes;"> </span>The filing of a claim of lien will no longer
withdraw a waiver and release.<o:p></o:p></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 85.7pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]-->The time for a claimant to file an affidavit of
nonpayment to withdraw a waiver is increased from sixty (60) days to ninety
(90) days to align with the time allowed for filing a claim of lien.<o:p></o:p></p>
<p class="MsoListParagraphCxSpLast" style="margin-left: 85.7pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">3.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]-->Statutory mandated waiver and release forms are
no longer required to in Boldface Capital letters but are still required to in
in at least 12-point font.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The updated Georgia chapter along with the three revised statutory
forms required are now available to subscribers on <a href="https://d.docs.live.net/4af3dd6545e51914/Documents/lienlawonline.com">LienlawOnline.com</a>.<o:p></o:p></p>lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-67251796064076099012020-10-21T13:57:00.003-07:002020-10-21T13:57:51.778-07:00Lien Law Online announces changes to its Florida Chapter and Forms - 10-21-2020<p> </p><p class="MsoNormal"><span style="color: #1f497d; font-family: "Georgia",serif; font-size: 14.0pt;">“Lienlaw Online is pleased to announce the publication of its
updated Florida chapter. The update includes critical revisions to Florida
requirements for notices of nonpayment and the new, required form for a notice
of nonpayment. Thank you to Brian A. Wolf, Esq., Partner at Smith, Currie &
Hancock LLP for this invaluable update.”<o:p></o:p></span></p>lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com1tag:blogger.com,1999:blog-355904266393938453.post-76011761903074741252020-08-17T12:49:00.001-07:002020-08-17T12:49:56.201-07:00<p> </p><p class="MsoNormal" style="margin-left: .5in;"><b><span style="font-family: "Garamond",serif;">Tennessee
Lien Law Update: <o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-left: .5in;"><span style="font-family: "Garamond",serif;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="margin-left: .5in;"><span style="font-family: "Garamond",serif;">There
have been recent changes to the Tennessee Lien Laws having significant effects
on notice, retainage, and prompt payment requirements in the construction
industry. The new Tennessee legislation went into effect July 1, 2020, and had
the most impact on Notice to Owner requirements, essentially inversing the
requirements on who must submit such a notice and simplifying the standard
form. </span><span style="font-family: Garamond, serif;"> </span></p>
<p class="MsoNormal" style="margin-left: .5in;"><span style="font-family: "Garamond",serif;">As
of the new July 1, 2020 changes, only prime contractors working on
owner-occupied, residential projects of 1-4 units must send a Notice to Owner,
as long as the owner intends to live there after construction. Contractors for
other types of projects are no longer required to submit a Notice to Owner.
This is precisely the inverse of the prior rules, as prime contractors working
on residential projects were previously exempt from sending such Notice.
Additionally, the Tennessee legislature simplified the language that must be
included in the Notice. </span><span style="font-family: Garamond, serif;"> </span></p>
<p class="MsoNormal" style="margin-left: .5in;"><span style="font-family: "Garamond",serif;">Other
significant changes made relate to retainages and the Prompt Pay Act. As of the
July 1<sup>st</sup> changes, retained funds not deposited into an escrow
account accrue damages beginning from the date the retained funds are first
withheld. However, as of these changes, these fees are <i>expressly </i>to be
considered to be “damages” and not to be a “penalty”. The legislature
also added Section 66-34-103(e)(4) exempting public entities from these and
other late retainage penalties and damages.</span><span style="font-family: Garamond, serif;"> </span></p>
<p class="MsoNormal" style="margin-left: .5in;"><span style="font-family: "Garamond",serif;">The
July 1, 2020 amendments also made it so that bankruptcy is not a defense for
failure to release retainage or trust funds when due and expressly increased
interest penalties for late construction payments to 1.5% per month on
contracts not specifying an interest rate. This is a marked increase
compared to the previous rate of 2% less than the formula rate per annum for
contracts not specifying an interest rate.</span><span style="font-family: Garamond, serif;"> </span></p>
<p class="MsoNormal" style="margin-left: .5in;"><span style="font-family: "Garamond",serif;">Lastly,
the legislation created new form language to be used when giving a notice of
intent that prompt payment laws will be invoked, which may be sent on its own
or within a contractor’s Notice of Nonpayment. <o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p><br />lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com1tag:blogger.com,1999:blog-355904266393938453.post-47103067739336169492016-02-19T10:28:00.001-08:002016-02-19T10:28:26.631-08:00Lien Law Online eLert for 2/17/2016 - New Jersey<!--[if gte mso 9]><xml>
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<br />
<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">February
17, 2016</span><br />
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<br /></div>
<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">The New
Jersey chapter of Lienlawonline.com has been updated with the latest cases
through the end of 2015. Two recent cases address the applicability of
the New Jersey Construction Lien Law, N.J.S.A. 2A:44A-1 et seq., and Municipal
Mechanic's Lien Law, <u>N.J.S.A.</u> 2A:44-125 <u>et seq.</u>, in the context
of public-private partnerships, so-called "P3 projects." In <u>Morris
County Improvement Authority v. Power Partners Mastec, LLC</u>, No. A-5082,
12T4, 2015 N.J. Super. Unpub. LEXIS 634 (App. Div.), <u>certif. granted</u>,
218 N.J. 532 (2014), the Appellate Division refused to enforce a
subcontractor's liens (totaling $50 million) that it had filed under both
statutes. As it relates to the municipal mechanic's liens, the Court held
that the County Improvement Authorities Law, <u>N.J.S.A</u>. 40:37A-127,
immunized the Morris County an Somerset Improvement Authorities from municipal
mechanic's liens. As for the construction liens, the Court held that they
could not attach to the municipal bond funds, because such liens may only attach
to real estate (or a leasehold interest therein). The New Jersey Supreme
Court granted certification in this case and will review the interplay between
the County Improvement Authorities Law and the Municipal Mechanic's Lien Law.</span><br />
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<br /></div>
<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">In <u>EnviroFinance
Group, LLC v. Envt'l Barrier Co., LLC</u>, 440 N.J. Super. 325 (App. Div.
2015), the Appellate Division upheld the lower court's determination that
construction liens on a project built on wetlands owned by the Meadowlands
Conservation Trust could not be discharged. The lower court found that
the liens were properly asserted against a private leasehold interest and
assets and not against the public realty. The Appellate Division likewise
rejected the exemption for the public improvement liens in the Constr! uction
Lien Law ("No liens shall attach nor a lien claim be filed...[f]or public
works or improvements to real property contracted for and awarded by a public
entity ....") <u>N.J.S.A.</u> 2A:44A-5(b). The Court rejected plaintiff's
argument that this provision for "improvements to real property" is
not contingent upon a project being "contracted for and awarded by a
public entity."</span><br />
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Dennis A.
Estis, Contributing Author/Steven Nudelman, Contributing Author</span><br />
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Rowe, Smith & Davis LLP </span>lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com1tag:blogger.com,1999:blog-355904266393938453.post-53638787451601952922015-06-29T11:23:00.002-07:002015-06-29T11:23:58.004-07:00Lien Law Online eLert for 6/29/2015 - Virginia<!--[if gte mso 9]><xml>
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<b style="mso-bidi-font-weight: normal;"><span style="font-size: 12.0pt;">Virginia General Assembly Bans Certain Prospective
Lien Waivers</span></b></div>
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<span style="font-size: 12.0pt;">Effective July 1, 2015,
Virginia law will no longer allow a general contractor to require a
subcontractor, lower tier subcontractor or material supplier to waive lien
rights prior to beginning work.<span style="mso-spacerun: yes;"> </span>The
legislature amended Va. Code § 43-3.C to state that no subcontractor, lower
tier subcontractor or material supplier may waive or diminish its lien rights
in a contract prior to furnishing any labor or materials and that such clauses
entered into prior to furnishing labor or materials are null and void.<span style="mso-spacerun: yes;"> </span>All other parties can waive their lien rights
at any time, including prior to beginning work.<span style="mso-spacerun: yes;">
</span>A g<a href="https://www.blogger.com/null" name="_GoBack"></a>eneral contractor could therefore still be
required by the owner to waive it’s own lien rights in the contract.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-size: 12.0pt;">John S. Morris, III Esquire
(Contributing Author)</span></div>
<div class="MsoNormal">
<span style="font-size: 12.0pt;">Beale, Davidson, Etherington
& Morris, P.C. (www.bealelaw.com)</span></div>
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-1743926379004039192015-06-23T11:44:00.001-07:002015-06-23T11:44:34.398-07:00Lien Law Online eLert for 6/23/2015 - New Mexico<!--[if gte mso 9]><xml>
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<br />
Self-Service Storage Liens<br />
<br />
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Under the New Mexico Self-Service Storage Lien Act,<a href="https://www.blogger.com/blogger.g?blogID=355904266393938453#_edn1" name="_ednref1" style="mso-endnote-id: edn1;" title=""><span class="MsoEndnoteReference"><span style="font-size: 8.0pt; mso-bidi-font-size: 11.0pt;"><span style="mso-special-character: footnote;"><span class="MsoEndnoteReference"><span style="font-family: "Garamond","serif"; font-size: 8.0pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-size: 11.0pt; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;">[ </span></span></span></span></span></a>a self-service storage facility owner is entitled to a lien on all personal
property located at the self-service storage facility for the rent, labor or
other charges incurred in relation to the property.<span style="mso-spacerun: yes;"> </span>The lien attaches to the personal property at
the time that the renter goes into default under its rental agreement and
continues until such time as the default is corrected, a sale of the property
is conducted or the property is otherwise disposed of.<span style="mso-spacerun: yes;"> </span>If the renter is in default under the rental
agreement for a period of five days, the owner may deny the renter access to
the storage space.<span style="mso-spacerun: yes;"> </span>If the default
continues for a period of thirty days, the owner may enter into the storage
space and remove the personal property to a safe place, provided that the owner
has sent a notice of intent to enforce a lien to the renter’s last known
address within five days of entering the space.</div>
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A notice of intent to enforce a lien for purposes of the New
Mexico Self-Service Storage Lien Act must include 1) an itemized statement of
the amounts due and the dates when they became due; 2) a brief description of
the property subject to the lien; 3) a notification of denial of access to the
property, including the name, street address and telephone number of the person
who may be contacted in responding to the notice; 4) a demand for payment
within a specified period of time, which cannot be less than fifteen days; and
5) a conspicuous statement that unless the claim is paid within the time stated,
the personal property may be advertised for sale or other disposition and then
sold to satisfy the lien.<span style="mso-spacerun: yes;"> </span>Effective July
1, 2015, the notice of intent to enforce a lien may be made by verified mail or
electronic mail, at the renter’s election made at the time of entering into the
rental agreement.<span style="mso-spacerun: yes;"> </span>If the owner provides
notice by electronic mail and receives no response, return receipt or delivery
confirmation within three business days, the owner must deliver notice by
verified mail to the renter’s last known address.</div>
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After expiration of the time set in the notice of intent to
enforce a lien, the owner must publish an advertisement for sale or other
disposition once a week for two consecutive weeks in a newspaper of general
circulation in the county where the self-service storage facility is
located.<span style="mso-spacerun: yes;"> </span>The advertisement must include
a general description of the property to be sold, the address of the
self-service storage facility, the name and last known address of the renter
and the time, place and manner of sale or other disposition.</div>
<div style="mso-element: endnote-list;">
<br /></div>
<div style="mso-element: endnote-list;">
Sean Calvert, Esquire (Contributing Author)</div>
<div style="mso-element: endnote-list;">
Calvert Menicucci, P.C. (www.hardhatlaw.net)</div>
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-41092369493987239522014-12-12T13:18:00.000-08:002014-12-12T13:18:29.300-08:00Lien Law Online eLert for 12/12/2014 - Pennsylvania<strong>What changes were made in the October 14, 2014 amendments and when do they go into effect?</strong><br />
<br />
A
State Construction Notices Directory will be created for posting
Owner’s Notice of Commencement, Subcontractor’s Notice of Furnishing,
Owner’s Notice of Nonpayment, and Owner’s Notice of Completion. The
system applies to projects costing at least $1,500,000, referred to as
“searchable projects”. Participation in the system is optional in the
discretion of the owner. An owner of a searchable project who wants to
participate must file with the Directory and post at the job site a
notice of commencement prior to commencement of labor, work, and
furnishing of materials, providing certain categories of information
about the project. If a searchable project owner makes the required
filing and posting, a subcontractor who fails to file a notice of
furnishing within 45 days after commencing work loses all rights to file
a mechanics’ lien with respect to the project.<br />
<br />
<strong>The State Construction Notices Directory will become operational on <span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">December 31, 2016</span>.</strong><br />
<br />
<strong>What changes were made in the July 9, 2014 amendments and when did they go into effect?</strong><br />
<br />
To counter <em>Commerce Bank/Harrisburg N.A. v. Kessler</em>,
46 A.3d 724 (Pa. Super. 2012), the construction loan priority provision
was clarified to provide that open-ended mortgages have priority over
mechanics’ liens where at least 60 percent of the proceeds are intended
to pay or are used to pay all or part of the costs of construction. A
definition was also added for “costs of construction” that includes most
of the expenses (soft as well as hard) that are incurred in a
construction project.<br />
<br />
Subcontractors no longer have a right to
lien residential properties consisting of 1 or 2 dwelling units in a
single building or townhouse where the owner or tenant has paid the full
contract price to the contractor.<br />
<br />
The changes in the July 9, 2014
amendments apply to liens perfected on or after July 9, 2014, even if
the visible commencement of construction preceded that date.<br />
<br />
<strong>What changes were made in the August 11, 2009 amendments and when did they go into effect? </strong><br />
<br />
The
term “residential building” was replaced with “residential property”
which is defined as “property on which there is or will be constructed a
residential building not more than three stories in height, not
including any basement level regardless of whether any portion of that
basement is at grade level, or which is zoned or otherwise approved for
residential development on which there is or will be constructed a
residential building not more than three stories in height, not
including any basement level, regardless of whether any portion of the
basement is at grade level, planned residential development or
agricultural use, or for which a residential subdivision or land
development plan has or planned residential development plan has
received preliminary, tentative or final approval on which there is or
will be constructed a residential building not more than three stories
in height, not including any basement level, regardless of whether any
portion of that basement is at grade level, pursuant to the act of July
31, 1969 (P.L. 805, No. 247), known as the “Pennsylvania Municipalities
Planning Code.”<br />
<br />
Advance waivers of lien for contracts to
construct residential properties are not limited by a monetary cap on
the total contract price.<br />
<br />
The changes in the August 11, 2009 amendments went into effect on <strong><span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">October 10, 2009.</span></strong><br />
<strong><span data-mce-style="text-decoration: underline;" style="text-decoration: underline;"><br /></span></strong>
Carl G. Roberts, Esquire (Contributing Author) - Ballard Spahr LLPlienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-70769957424421439072014-12-01T13:27:00.000-08:002014-12-01T13:27:02.575-08:00Lien Law Online eLert for 12/1/2014 - Virginia<!--[if gte mso 9]><xml>
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<br />
<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">December
1, 2014</span><br />
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Lien
Law On-line is pleased to announced that the Virginia chapter has been revised
to advise that the notice to the person or entity designated on the building
permit for a one or two family residential dwelling unit must include the
person’s or entity’s license or certificate number issued by the Board of
Contractors and the date such license or certificate was issued and will
expire.</div>
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<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
John
S. Morris, III, Esquire (Contributing Author)</div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Beale, Davidson, Etherington
& Morris, P.C.</div>
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www.lienlawonline.com </div>
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com3tag:blogger.com,1999:blog-355904266393938453.post-20051483275430563832014-04-16T06:53:00.001-07:002014-04-16T06:53:28.810-07:00Lien Law Online eLert for 4/16/2014 - Mississippi<!--[if gte mso 9]><xml>
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<span style="font-family: "Arial","sans-serif"; font-size: 13.5pt;">April
15, 2014</span></div>
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<br /></div>
<div class="MsoNormal">
<span style="font-family: "Arial","sans-serif"; font-size: 13.5pt;">Please
note that on April 11, 2014, Mississippi enacted a new lien law that extends
lien rights to subcontractors, materials suppliers, and sub-subcontractors and
material suppliers to subcontractors (</span><span style="font-size: 10.0pt;"><a href="http://billstatus.ls.state.ms.us/documents/2014/pdf/SB/2600-2699/SB2622SG.pdf"><span style="font-family: "Arial","sans-serif"; font-size: 13.5pt;">http://billstatus.ls.state.ms.us/documents/2014/pdf/SB/2600-2699/SB2622SG.pdf</span></a></span><span style="font-family: "Arial","sans-serif"; font-size: 13.5pt;">). The new law also
has a much shorter "window" within which to file a lien and suit to
enforce a lien. Finally, the new law includes owner defenses and statutory
lien waivers.</span></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 13.5pt;">A
revised Mississippi chapter will be available soon.<span style="mso-spacerun: yes;"> </span>We will notify you as soon as the updated
chapter is posted.</span></div>
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<br /></div>
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<span style="color: blue; mso-fareast-font-family: "Times New Roman";"><a href="mailto:dmockbee@mhdlaw.com"><span style="font-family: "Arial","sans-serif"; font-size: 13.5pt;">David W. Mockbee</span></a></span><span style="font-family: "Arial","sans-serif"; font-size: 13.5pt; mso-fareast-font-family: "Times New Roman";"> (Contributing Author)</span></div>
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<br /></div>
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<span style="color: blue; mso-fareast-font-family: "Times New Roman";"><a href="http://www.mhdlaw.com/" target="_blank"><span style="color: #954f72; font-family: "Arial","sans-serif"; font-size: 13.5pt;">Mockbee
Hall & Drake, P.A.</span></a></span></div>
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US;"><br /></span>lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com1tag:blogger.com,1999:blog-355904266393938453.post-37507124390135534022013-11-12T11:39:00.001-08:002013-11-12T11:39:48.991-08:00Lien Law Online eLert for 11/4/2013 - Kentucky<!--[if gte mso 9]><xml>
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<span style="mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"></span></span></span>21. Two relevant cases:</div>
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<b><i><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">PBI
Bank, Inc. v. Schnabel Found. Co., </span></i></b><b><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">No. 2011-CA-001135-MR (Ky. App. Jan.
25, 2013) – equitable tolling applied to allow untimely lien statement to
relate back to a prior lien statement that the county clerk had wrongly refused
to file. </span></b><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">**Case
is “to be published” but hasn’t been yet**</span></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Schnabel
Foundation Company (“Schnabel”) provided labor and materials on the Harrods
Creek Overlook Condominiums project in Prospect, Kentucky (the
“Project”). The Project was owned by Premier Land Company
(“Premier”). Premier obtained a mortgage on the property from PBI Bank,
Inc. (“PBI”). </span></div>
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<br /></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Schnabel’s
last day of work was August 27, 2007. On February 22, 2008, Schnabel’s
counsel mailed a lien statement to the Jefferson County Clerk for
recordation. The clerk refused to file the statement because Schnabel’s
counsel had not signed as the preparer of the statement. </span></div>
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<br /></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">When
Premier defaulted on its mortgage, PBI moved for foreclosure on May 20, 2008
and named Schnabel as a defendant. Nine days later, on May 29, 2008,
Schnabel recorded its Mechanic’s Lien (which included a signature by the
preparer). </span></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Schnabel
and PBI moved for summary judgment on the enforceability of the lien. The
court first examined whether the February 22, 2008 lien statement was
improperly rejected by the Jefferson County Clerk. KRS 382.335(1)
requires that lien statements must include “the name and address of the
individual who prepared the instrument” and must be signed by the individual
who prepared them. The appellate court determined that Schnabel’s
attorney had signed the lien statement and had included a “‘prepared by
statement’ listing [the attorney’s] name and address” but had not signed
separately as the preparer. “KRS 382.335(1) does not require that the
preparer of the statement sign the instrument in a specific form or
location. It only requires that the person who prepared the instrument
execute his signature by ‘affixing a facsimile of his on the instrument.”
<i>Id</i>. at slip op. 4. Therefore, because Schnabel had signed the
first lien statement, the court determined that it had been improperly rejected
by the County Clerk. </span></div>
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<br /></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">The
court then examined whether equitable tolling would allow the untimely second
lien statement to relate back to the improperly rejected first lien statement
(the second lien statement was untimely because it was filed more than six
months after Schnabel’s last day of work, in violation of KRS 376.080).
As Schnabel “could not force the county clerk to perform official duties and
file the [first lien statement],” the Court of Appeals affirmed the application
of equitable tolling and thereby the lower court’s judgment in favor of
Schnabel. <i>Id</i>. at slip op. 5. </span></div>
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<b><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Dreamers,
LLC v. Don’s Lumber & Hardware, Inc., No. 2009-CA-000978-MR (Ky. App. Jan.
11, 2013) – examination of notice requirement </span></b><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">**Opinion is not to
be published**</span></div>
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<br /></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">The
Dreamers, LLC (“Dreamers”) purchased materials from Don’s Lumber &
Hardware, Inc. (“DLH”) on credit and incorporated those materials into the
construction of a new house in Radcliff, Kentucky. Dreamers sold the
completed house to Appellant Glenda Hoffman. </span></div>
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<br /></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">When
DLH was not paid for its materials, it filed a Mechanic’s Lien against the
house and later sued to foreclose the lien. The case was before the Court
of Appeals on several grounds, including the Appellants’ claim that summary
judgment was improper because DLH had failed to comply with the notice
provisions of KRS 376.010(3) and (4). The Court of Appeals found no merit
in this argument, explaining that the record showed that DLH had given notice
to Hoffman within sixty days of last performing work on the property.
Therefore DLH had complied with the requirements of KRS 376.010(3) and
(4). </span></div>
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<span style="mso-bidi-font-family: Calibri; mso-fareast-font-family: Calibri;"><span style="mso-list: Ignore;"><span style="font: 7.0pt "Times New Roman";"></span></span></span>S2. Statutory discussion of Kentucky Fairness in
Construction Contracting Act applicable to mechanics liens</div>
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<br /></div>
<div class="MsoNormal">
A.J. Manion (Contributing Author)</div>
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Manion Stigger LLP</div>
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<br /></div>
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November
4, 2013<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"> </span></div>
<div class="MsoNormal">
<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"> </span></div>
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"On
October 10, 2013, the United States Court of Appeals for the Fifth Circuit in
Noatex Corp. v. King Constr. of Houston, LLC, 2013 U.S. App. LEXIS 20656 (5th
Cir., Oct. 10, 2013) held that Mississippi’s Stop Payment Notice statute, Miss.
Code Ann. §85-7-181, is an unconstitutional violation of procedural due
process. Accordingly, since only those who have a direct contractual
relationship with the owner, his agent, or his representative are afforded the
protection of a lien, subcontractors and suppliers to general contractors
currently do not have any type of lien or payment protection rights."<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"> </span></div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"> </span></div>
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David
Mockbee, Contributing Author<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"> </span></div>
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Mockbee
Hall & Drake, P.A.</div>
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-76934779108260294132013-09-11T11:59:00.000-07:002013-09-11T11:59:42.637-07:00Lien Law Online eLert for 9/10/2013 - Louisiana<!--[if gte mso 9]><xml>
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September
10, 2013</div>
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<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
This
past year the Louisiana legislature enacted a handful of amendments which have
changed the notice requirements and time for enforcement of certain lien
claimants under the Private Works Acts. The most important change is that a
lien claimant is now required to file suit within one year of the recordation
of its Statement of Claim or Privilege, whereas before the deadline to file
suit to enforce the claim was one year after the expiration of the time to file
a lien. In addition, lessors of movables are now required to provide the
owner and contractor with a signed copy of the lease agreement identifying the
terms of rental and of payment. Lastly, recent jurisprudence which
addressed the requirement of itemization in a Statement of Claim or Privilege
prompted legislative changes to clarify that unpaid invoices are required to be
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H.
Bruce Shreves (Contributing Author)<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"> </span></div>
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Peter S. Thriffiley, Jr. (Contributing Author)</div>
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Simon Peragine Smith & Redfearn LLP</div>
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-90559200357089357922013-09-09T08:29:00.000-07:002013-09-09T08:29:00.860-07:00Lien Law Online eLert for 9/4/2013 - Virginia<!--[if gte mso 9]><xml>
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September 4, 2013</div>
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<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<u>VIRGINIA LIEN LAW CHANGE</u> Please note
that there has been a change to Virginia’s lien law.<span style="mso-spacerun: yes;"> </span>Lien claimants that provided labor for the
construction of an improvement must hold a valid license or certificate from
the Virginia Board of Contractors in the proper class of license for the value
of the work performed in order to have a valid lien.<span style="mso-spacerun: yes;"> </span>The claimant must have the license when the
work is performed.<span style="mso-spacerun: yes;"> </span>It will not be
sufficient to obtain a license after the work is performed, but before the lien
is filed.<span style="mso-spacerun: yes;"> </span>The forms for mechanics’ liens
by general contractor, subcontractor and sub-subcontractor that can be linked
from the Virginia Chapter have been modified to add lines necessary to
establish the existence of the claimant’s contractor’s license or certificate.</div>
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<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
John S. Morris, III, Esquire (Contributing Author)</div>
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Beale, Davidson, Etherington & Morris, P.C.</div>
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-71497992915857408582013-08-23T11:09:00.002-07:002013-08-23T11:09:46.203-07:00Lien Law Online eLert for 8/13/2013 - Nevada<!--[if gte mso 9]><xml>
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August 13, 2013<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><br style="mso-special-character: line-break;" />
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The Nevada chapter has been
updated.<span style="mso-spacerun: yes;"> </span>The only substantive change was
that the population increased from 400,000 to 700,000 in the section entitled
“Special Requirements for Lessess.”<span style="mso-spacerun: yes;"> </span>In
addition, the “Discharge or Release of Notice of Lien” form has been revised.<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><br style="mso-special-character: line-break;" />
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Dennis R. Haney, Esquire
(Contributing Author)<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><br style="mso-special-character: line-break;" />
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Cotton, Driggs, Walch,
Holley, Woloson & Thompson</div>
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<br style="mso-special-character: line-break;" />
</span>lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-38218299514323869232013-08-13T10:47:00.000-07:002013-08-13T10:48:14.891-07:00Lien Law Online eLert for 8/12/2013 - Florida<!--[if gte mso 9]><xml>
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August 12, 2013<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><br style="mso-special-character: line-break;" />
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The Florida chapter has been
updated to include expanded information regarding Conditional Payment Bonds and
rights to lien leaseholds. Conditional payment bonds are becoming more
prevalent in Florida and impact the rights of contractors, subcontractors and
material suppliers. Improvements on leased property present special challenges
due to the limited extent of lien rights afforded.<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><br style="mso-special-character: line-break;" />
<br style="mso-special-character: line-break;" />
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<div class="MsoNormal">
Brian A. Wolfe (Contributing
Author)<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";"><br style="mso-special-character: line-break;" />
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Smith Currie & Hancock,
LLP</div>
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-14694715702916519242013-08-12T11:19:00.002-07:002013-08-12T11:19:32.842-07:00Lien Law Online eLert for 8/9/2013 - New Jersey<div class="MsoNormal" data-mce-style="mso-margin-top-alt: auto; mso-margin-bottom-alt: auto; text-align: justify;" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
Now
that the January 2011 amendments to the New Jersey Construction Lien
Law have been in effect for over two years, the New Jersey chapter of
LienLaw Online has been updated to reflect the latest case authority
interpreting these amendments. These cases, many of which are
unreported, address the following issues:</div>
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<br /></div>
<span data-mce-style="font-size: 10.0pt; font-family: 'Verdana','sans-serif'; mso-fareast-font-family: 'Times New Roman';" style="font-family: 'Verdana','sans-serif'; font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman';">Construction Lien Law arbitration;</span><br />
<br />
<span data-mce-style="font-size: 10.0pt; font-family: 'Verdana','sans-serif'; mso-fareast-font-family: 'Times New Roman';" style="font-family: 'Verdana','sans-serif'; font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman';">Liens against leasehold interests;</span><br />
<br />
<span data-mce-style="font-size: 10.0pt; font-family: 'Verdana','sans-serif'; mso-fareast-font-family: 'Times New Roman';" style="font-family: 'Verdana','sans-serif'; font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman';">Stay of lien foreclosure action pending arbitration;</span><br />
<br />
<span data-mce-style="font-size: 10.0pt; font-family: 'Verdana','sans-serif'; mso-fareast-font-family: 'Times New Roman';" style="font-family: 'Verdana','sans-serif'; font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman';">Obligation of materials supplier to lien the proper project by a contractor with multiple, open accounts;</span><br />
<br />
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<br />
<span data-mce-style="font-size: 10.0pt; font-family: 'Verdana','sans-serif'; mso-fareast-font-family: 'Times New Roman';" style="font-family: 'Verdana','sans-serif'; font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman';">Explanation of monetary relief available to aggrieved party where lien willfully overstated.</span><span data-mce-style="font-size: 10.0pt; font-family: 'Verdana','sans-serif'; mso-fareast-font-family: 'Times New Roman';" style="font-family: 'Verdana','sans-serif'; font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman';"> </span><br />
<br />
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<span data-mce-style="font-size: 10.0pt; font-family: 'Verdana','sans-serif'; mso-fareast-font-family: 'Times New Roman';" style="font-family: 'Verdana','sans-serif'; font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman';"><a data-mce-href="blocked::mailto:destis@greenbaumlaw.com" href="http://cpipublishing.com/wordpress/wp-admin/blocked::mailto:destis@greenbaumlaw.com" title="mailto:destis@greenbaumlaw.com">Dennis A. Estis, Esquire</a> Contributing Author<br /> </span></div>
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<span data-mce-style="font-size: 10.0pt; font-family: 'Verdana','sans-serif'; mso-fareast-font-family: 'Times New Roman';" style="font-family: 'Verdana','sans-serif'; font-size: 10.0pt; mso-fareast-font-family: 'Times New Roman';"><a data-mce-href="mailto:snudelman@greenbaumlaw.com" href="mailto:snudelman@greenbaumlaw.com" title="mailto:snudelman@greenbaumlaw.com">Steven Nudelman, Esquire</a> Contributing Author<br /> </span></div>
<span data-mce-style="mso-fareast-language: EN-US;" style="mso-fareast-language: EN-US;"><span data-mce-style="font-size: 11.0pt; font-family: 'Arial','sans-serif';" style="font-family: 'Arial','sans-serif'; font-size: 11.0pt;"><a data-mce-href="http://www.greenbaumlaw.com/" href="http://www.greenbaumlaw.com/" target="_blank" title="http://www.greenbaumlaw.com/">Greenbaum, Rowe, Smith & Davis LLP</a></span></span>lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-42085686742623684432013-08-07T12:29:00.002-07:002013-08-07T12:29:56.036-07:00Lien Law Online eLert for 8/6/2013 - Missouri<!--[if gte mso 9]><xml>
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August 6, 2013</div>
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<span style="line-height: 115%;"><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Changes to Missouri's Mechanic's
Lien Statute pertaining to a lien claim for rental of machinery or equipment
will go into effect August 28, 2013. This statute does not apply to those
who use rented machinery or equipment in performing their work, rather it
applies to those claiming a lien solely for the rental of the machinery or
equipment on a commercial project. Such a lien is permissible for a claim
that exceeds $5,000.00, for the reasonable rental value of the equipment, while
<em><span style="font-family: "Verdana","sans-serif";">on</span></em> the subject
property, and does not require proof of <em><span style="font-family: "Verdana","sans-serif";">use</span></em>
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<span style="line-height: 115%;"><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">The changes include, first, the time
for giving the property owner written notice that rental machinery or equipment
is being used upon their property. The time for notice has changed from <strong><span style="font-family: "Verdana","sans-serif";">five</span></strong> to <strong><span style="font-family: "Verdana","sans-serif";">fifteen</span></strong> business
days from the commencement of the use of the equipment. In addition,
inclusion of the rental rate as a part of the written notice is <strong><span style="font-family: "Verdana","sans-serif";">no longer</span></strong>
required. As such, the written notice required must now include only the
identity of: (1) the name of the entity that rented the machinery or equipment;
(2) and the machinery or equipment being rented. </span></span></div>
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Darcy V. Hennessy & Leslie A. Boe (Contributing
Authors)<span style="color: #1f497d; mso-themecolor: dark2;"></span></div>
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-ansi-language: EN-US; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;">Hennessy, Boe & Gondring, P.A</span>lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-59427170153170458292013-08-06T07:33:00.002-07:002013-08-06T07:33:50.144-07:00Lien Law Online eLert for 8/2/2013 - Oregon<!--[if gte mso 9]><xml>
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August
2, 2013</div>
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<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
First,
the Oregon Court of Appeals recently confirmed that persons who accept a
mortgage or trust deed as security for a construction debt may <em><b>forfeit
their right to a lien claim. </b></em>Claimants must now carefully consider
whether and when to accept security in an improvement for performance
concerning the construction of the improvement.</div>
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<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Second,
the Oregon legislature repealed its “stay of foreclosure” law that allowed
property owners to stay a construction lien foreclosure action by filing a
complaint with the Construction Contractors Board. The repeal, however, is only
temporary and resumes effect in 2017.</div>
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<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Thomas
A. Larkin, Esquire (Contributing Author)</div>
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<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto;">
Stewart
Sokol & Gray LLC (<a href="http://www.lawssg.com/">www.lawssg.com</a>)</div>
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-69148422038358559142013-07-11T11:52:00.002-07:002013-07-11T11:52:51.942-07:00Lien Law Online eLert for 7/11/2013 - Wyoming<!--[if gte mso 9]><xml>
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July 11, 2013</div>
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<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
The Wyoming Legislature has recently enacted changes to the
Wyoming Lien statute.<span style="mso-spacerun: yes;"> </span>The most
significant changes include an extension to the time period for filing notice
of a lien, and an additional section about federal, state and local officials’
or employees’ right to discharge a lien.</div>
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Effective July 1, 2013, a lien claimant, in the case of
real property, now has thirty (30) days from the date the lien statement is
filed to send notice to the last record owner or his agent.<span style="mso-spacerun: yes;"> </span>This is a significant time extension for
filing notice as the prior statute required the lien claimant to send notice
within five (5) days of filing.<span style="mso-spacerun: yes;"> </span>In
addition, the statute now includes the following language about the validity of
liens: “Failure to send the notice required under this subsection shall not
affect the validity of the lien.”<span style="mso-spacerun: yes;"> </span>WY ST
§ 29-1-312.<span style="mso-spacerun: yes;"> </span>The notice of satisfaction
timeline under § 29-1-313(a) has also been extended from five (5) to thirty
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Effective March 15, 2013, a federal, state or local
official or employee may discharge a lien under both subsections (b) and (d) of
Chapter 29-1-601.<span style="mso-spacerun: yes;"> </span>Subsection (b) is the
general provision that allows any person to discharge a lien against their
personal or real property after following the procedural steps within the
subsection.<span style="mso-spacerun: yes;"> </span>The added subsection (d)
applies only to federal, state, or local officials or employees and allows them
to discharge a lien by recording an affidavit with the county clerk.<span style="mso-spacerun: yes;"> </span>Once the public official or employee provides
notice of the affidavit the lien claimant is obligated to respond within twenty
(20) days by petitioning the district court in which the lien was filed and
stating why the lien was valid.<span style="mso-spacerun: yes;"> </span>If the
lien claimant does not appear in court or if the lien claimant fails to
convince the court that the lien was valid, the courts are authorized to impose
penalties and require the lien claimant pay the other party’s reasonable
attorney’s fees.<span style="mso-spacerun: yes;"> </span>WY ST § 29-1-601.</div>
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<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
Additionally, the legislatu<a href="http://www.blogger.com/null" name="_GoBack"></a>re
introduced a bill on January 8, 2013 that proposes changes to several
provisions of the Wyoming Lien statute that impose monetary penalties.<span style="mso-spacerun: yes;"> </span>If the bill is enacted into law, it would
replace the monetary penalties with class D misdemeanors.<span style="mso-spacerun: yes;"> </span>The changes would apply to the following
sections: 29-1-601, 29-3-108, 29-5-106, 29-7-102(b), and 29-7-207. (2013 Bill
Text WY H.B. 39).</div>
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<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
The changes enacted in 2010 repealing several sections of
the old statute remain in effect.</div>
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Jason
Robinson (Contributing Author)</span><br />
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<span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Babcock
Scott & Babcock</span><br />
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-30991482349315109742013-07-10T08:11:00.002-07:002013-07-10T08:11:23.952-07:00Lien Law Online eLert for 7/9/2013 - VirginiaJuly 9, 2013
“Effective July 1, 2013, lien claimants which provided labor for the construction of an improvement will not be entitled to a lien unless it held a valid license or certificate from the Virginia Board of Contractors in the proper class of license for the value of the work performed. The way the statute is written, the claimant must have the license when the work is performed. It will not be sufficient to obtain a license after the work is performed but before the lien is filed.”
John S. Morris, III, Esquire (Contributing Author)
Beale, Davidson, Etherington & Morris, P.C.
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-62953782787606689182013-07-02T12:52:00.001-07:002013-07-02T12:52:44.263-07:00Lien Law Online eLert for 7/2/2013 - IowaJuly 2, 2013
This is a reminder of changes in Iowa’s mechanic’s lien law that went into effect in 2013.
(1) New Online Filing System. All mechanic’s liens, pre-lien notices (for residential projects), and other lien-related filings (other than district court filings) must be filed or “posted” on a new, centralized online registry, termed the Mechanic’s Notice and Lien Registry (or MNLR). The MNLR is at www.sos.iowa.gov/mnlr, and the help line for the MNLR is: 888-767-8683.
(2) The Two Relevant Categories of Residential Construction Companies. For pre-lien notice purposes (see #3 and #4), you must know whether you are a general contractor or a subcontractor for a project. In short, a “general contractor” is anyone who furnishes labor or materials directly to an owner, and a “subcontractor” is anyone who furnishes labor or materials to a general contractor, owner-builder, or anyone other than an owner (such as another subcontractor).
(3) Two Notice Requirements for Residential General Contractors. Pursuant to the new law and administrative rules effective January 2, 2013, in order to preserve the right to later file a lien, all general contractors on residential projects must (1) post a "Commencement of Work" Notice to the MNLR within ten (10) days of commencement of work on each project, and (2) also provide an “owner notice” to the owner, via a construction contract or separate notice, at the outset of the project, as was required under the old law. Below is the new owner notice language to be included in the contract.
Persons or companies furnishing labor or materials for the improvement of real property may enforce a lien upon the improved property if they are not paid for their contributions, even if the parties have no direct contractual relationship with the owner. The state construction registry provides a listing of all persons or companies furnishing labor or materials who have posted a lien or who may post a lien upon the improved property.
The state construction registry, called Mechanic’s Notice and Lien Registry, can be found at www.sos.iowa.gov/mnlr, and the toll-free telephone number for this state construction registry is 888-767-8683.
(4) One Notice Requirement for Residential Subcontractors. All residential subcontractors (including suppliers) working under a general contractor or owner-builder are required to post a “Preliminary Notice” to the MNLR if they want to preserve their lien rights. This notice should be posted as soon as possible, which currently means, as soon as labor or materials are furnished to or for a project.
(5) Mechanic’s Liens. General contractors and subcontractors must post their mechanic’s liens on the MNLR within 90 days as of the date of last work to ensure their lien is enforceable to the largest extent possible under the law. To be clear, if one fails to timely post a commencement or preliminary notice for a residential project, such person loses the right to post & enforce a mechanic’s lien for the project.
Jodie McDougal, Esquire (Contributing Author)
Davis Brown Law Firm
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-49928277079401349002013-05-15T13:07:00.002-07:002013-05-15T13:07:38.335-07:00Lien Law Online eLert for 5/14/2013 - GeorgiaMay 14, 2013
Earlier this month, the Georgia legislature enacted, and the Georgia governor signed into law, an amendment to the Georgia lien law which expands the scope of the labor, equipment, materials and services which may be included in a claim of lien in Georgia. Prior case law, and particularly the 2012 decision of the Georgia Court of Appeals in 182 Tenth, LLC v. Manhattan Construction Co., limited the scope of a mechanic’s lien in Georgia to the value of labor and materials which “actually went into and became a part of the property.” The amended Georgia Code Sections 44-14-361(c) and (d) now allow a lien claim to include in a claim of lien “the amount due and owing the lien claimant under the terms of its express or implied contract, subcontract, or purchase order.” As a result of this amendment, lienable amounts now may include contractor and supplier general conditions costs, as well as other support costs, profit and pre-judgment interest established by the contract. When the amendment takes effect on July 1, 2013, it will potentially reverse a clear trend by the Georgia courts to restrictively view the types of costs and damages properly includable in a claim of lien.
For more information, contact Frank Riggs, Contributing Author of the Georgia Chapter at frank.riggs@troutmansanders.com
Frank E. Riggs, Jr., Esquire
Troutman Sanders, LLP
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-80067965257007519982013-04-16T08:33:00.003-07:002013-04-16T08:33:41.580-07:00Lien Law Online eLert for 4/12/2013 - CaliforniaApril 12, 2013
California's revised lien law expanded protection for contractors working on selected projects with a contract price over $1 million by requiring certain owners to provide payment security of between 15% and 25% of the contract value. This important added protection can be found in Chapter 7 of the California Civil Code, Sections 8700-8730.
Please refer to complete changes in the California Chapter.
B. Scott Douglass, Esquire (Contributing Author)
David K. Ismay, Esquire (Contributing Author)
Farella Braun + Martel, LLP
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-70859580294666589642013-04-08T07:50:00.000-07:002013-04-08T07:50:27.056-07:00Lien Law Online Elert for 4/8/2013 - IllinoisOn February 11, 2013, Governor Quinn signed House Bill 3636 into law, effective immediately. The bill addresses two sections of the Illinois Mechanics Lien Act (the “Act”): Section 16 and Section 34. With respect to Section 16, House Bill 3636 overturns the controversial Cypress Creek decision (LaSalle Bank National Association v. Cypress Creek 1, LP, 242 Ill. 2d 231 (2011)) and clarifies how to apportion foreclosure proceeds under the Act between lenders and contractors. The amended Section 16 of the Act reads as follows:
No incumbrance upon land, created before or after the making of the contract for improvements under the provisions of this act, shall operate upon the building erected, or materials furnished until a lien in favor of the persons having done work or furnished material (hereinafter "lien creditor") shall have been satisfied, and upon any questions arising between incumbrancers and lien creditors, all previous incumbrances shall be preferred only to the extent of the value of the land at the time of making of the contract for improvements, but shall not be preferred to the value of any subsequent improvements, and each lien creditor shall be preferred to the value of all the subsequent improvements erected on said premises, whether or not provided by the lien creditor, and the court shall ascertain by jury or otherwise, as the case may require, what proportion of the proceeds of any sale shall be paid to the several parties in interest. All incumbrances, whether by mortgage, judgment or otherwise, charged and shown to be fraudulent, in respect to creditors, may be set aside by the court, and the premises freed and discharged from such fraudulent incumbrance. When the proceeds of a sale are insufficient to satisfy the claims of both previous incumbrancers and lien creditors, the proceeds of the sale shall be distributed as follows: (i) any previous incumbrancers shall have a paramount lien in the portion of the proceeds attributable to the value of the land at the time of making of the contract for improvements; and (ii) any lien creditors shall have a paramount lien in the portion of the proceeds attributable to the value of all subsequent improvements made to the property.
The amended Section 16 settles the dispute created by Cypress Creek by giving contractors preference over a prior incumbrancer to the extent of all improvements to the property, including improvements provided by other contractors.
House Bill 3636 also amended Section 34 of the Act. Section 34 allows an owner to serve on a mechanic's lien claimant a notice to proceed to file suit and if not done in thirty days the lien is extinguished. The notice that is given must provide a warning in at least 10 point bold face type: Failure to respond to this notice within 30 days after receipt, as required by Section 34 of the Mechanic's Lien Act, shall result in the forfeiture of the referenced lien.
lienlawonlinehttp://www.blogger.com/profile/18026354933997979737noreply@blogger.com0tag:blogger.com,1999:blog-355904266393938453.post-76350996574376335072013-04-05T11:34:00.000-07:002013-04-05T11:34:03.723-07:00Lien Law Online eLert for 4/3/2013 - OhioApril 3, 2013
The following article was written by our Ohio Contributing Author, Russell O'Rourke and is reprinted with permission.
Ohio Mechanic's Lien Law: Top 4 Reasons to Serve a Notice of Furnishing
#1 Getting Paid Faster
DO serve a Notice of Furnishing ("NOF"). Without the NOF the only person that really knows that you are working on the project is the one that hired you. The NOF gives you the opportunity to make sure that all the right people (the people who are responsible for assuring that subs and suppliers are paid) know, too. The NOF gets you on the right lists, the lists that the owner and the contractor look at when they are getting ready to make the next payment to the companies that work for them. When you serve an NOF you ARE on that list and before they make the payment, they want to know that you are being paid for your work (partially because most people are good people and they want the people who do the work to be paid, and partially because they know you have lien rights and the LAST thing they want is for you to file an Ohio Mechanic's Lien.
#2 Maintaining Your Mechanic's Lien Rights
If you are working on or supplying material to a construction project in Ohio (with some exceptions for homeowner involved residential projects) a Notice of Commencement ("NOC") has likely been filed. If an NOC has been filed and if you are a subcontractor or supplier, you MUST serve an NOF if you want to assure that you have the right to file an Ohio Mechanic's Lien to protect your right to be paid by claiming a security interest (the Lien) in the property you improved. Your ultimate right, if you are not paid, is to foreclose on the property. Without having served your NOF, you have no ability to file your mechanic's lien to be able to exercise this right. Often just the threat of filing a mechanics lien by your attorney is enough to bring the parties to the table to get you paid. If that does not work, filing the lien gets you in the right line for consideration when the property is being sold or refinanced. All else failing, you can still file suit to force the issue.
#3 Being a Professional Subcontractor or Supplier, Serve Your Notice of Furnishing
The Ohio Mechanic's Lien Law was changed over 20 years ago to include the Notices of Commencement ("NOC") and Notices of Furnishing ("NOF"). It is a part of doing business as a professional subcontractor or supplier. Owners and contractors are increasingly sophisticated and EXPECT that you will SERVE AN NOF. Actually, they will be more surprised if you don't. Some subcontractors and suppliers are concerned that a contractor or owner will be upset if they are serve an NOF. Again, it is a part of the construction business, as much as a construction contract is. People think it is strange if you do your work on a handshake, this is the same. It isn't personal, it's business. You will also look more professional to your banker if you do follow all the rules and properly serve your NOFs.
#4 Serving Your Notice of Furnishing on Time, but if You Didn't, Remember, Better Late Than Never
The Ohio Mechanic's Lien law requires that for full lien rights, that is lien rights that cover ALL of your labor and/or materials, you must serve your NOF within 21 days of your first day that you supplied labor or materials on the project. If you are late, you lose one day of lien rights (the labor and/or materials you supplied on that day) for every day you are late. If you serve your NOF on day 22, is it too late? No, for 2 reasons: First, unless you only supplied labor or materials on day 1, at least you will cover your claim for the time after that day. Second, even if you are VERY late, the contractor and the owner are less worried about whether you served it on time than they are about the headache they may have if you aren't paid. Even if you are late, service of the NOF is likely to get you paid. If you have completely missed your lien rights and you aren't being paid, you still have a contract claim against your customer and an equitable claim against the others.
R. Russell O’Rourke, Esquire (Contributing Author)
O’Rourke & Associates Co., LPA
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