Lien Law Online eLert for 8/13/2013 - Nevada

August 13, 2013

The Nevada chapter has been updated.  The only substantive change was that the population increased from 400,000 to 700,000 in the section entitled “Special Requirements for Lessess.”  In addition, the “Discharge or Release of Notice of Lien” form has been revised.

Dennis R. Haney, Esquire (Contributing Author)

Cotton, Driggs, Walch, Holley, Woloson & Thompson

Lien Law Online eLert for 8/12/2013 - Florida

August 12, 2013

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.

Brian A. Wolfe (Contributing Author)

Smith Currie & Hancock, LLP

Lien Law Online eLert for 8/9/2013 - New Jersey

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:

Construction Lien Law arbitration;

Liens against leasehold interests;

Stay of lien foreclosure action pending arbitration;

Obligation of materials supplier to lien the proper project by a contractor with multiple, open accounts;

Imposition of equitable liens when construction lien claim may not be asserted; and 

Explanation of monetary relief available to aggrieved party where lien willfully overstated. 

Dennis A. Estis, Esquire  Contributing Author

Steven Nudelman, Esquire  Contributing Author

Greenbaum, Rowe, Smith & Davis LLP

Lien Law Online eLert for 8/6/2013 - Missouri

August 6, 2013

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 on the subject property, and does not require proof of use of the machinery or equipment on the property.

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 five to fifteen 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 no longer 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. 

Darcy V. Hennessy & Leslie A. Boe (Contributing Authors)

Hennessy, Boe & Gondring, P.A

Lien Law Online eLert for 8/2/2013 - Oregon

August 2, 2013

First, the Oregon Court of Appeals recently confirmed that persons who accept a mortgage or trust deed as security for a construction debt may forfeit their right to a lien claim. Claimants must now carefully consider whether and when to accept security in an improvement for performance concerning the construction of the improvement.

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.

Thomas A. Larkin, Esquire (Contributing Author)

Stewart Sokol & Gray LLC (www.lawssg.com)

Lien Law Online eLert for 7/11/2013 - Wyoming

July 11, 2013

The Wyoming Legislature has recently enacted changes to the Wyoming Lien statute.  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.

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.  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.  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.”  WY ST § 29-1-312.  The notice of satisfaction timeline under § 29-1-313(a) has also been extended from five (5) to thirty (30) days.  WY ST § 29-1-313.

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.  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.  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.  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.  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.  WY ST § 29-1-601.

Additionally, the legislature introduced a bill on January 8, 2013 that proposes changes to several provisions of the Wyoming Lien statute that impose monetary penalties.  If the bill is enacted into law, it would replace the monetary penalties with class D misdemeanors.  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).

The changes enacted in 2010 repealing several sections of the old statute remain in effect.

Jason Robinson (Contributing Author)

Babcock Scott & Babcock