Wednesday, May 15, 2013

Lien Law Online eLert for 5/14/2013 - Georgia

May 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 E. Riggs, Jr., Esquire Troutman Sanders, LLP