Construction Liens

News & Analysis as of

Vendees' Liens—Construction Lenders Beware!

A recent Arizona Court of Appeals decision highlights a lien priority risk for secured construction lenders when the financed project fails. The problem—known as a “vendee lien”—is most likely to arise when up-front deposits...more

Editorial: Court Gives Nod to 1932 Florida Supreme Court Case, Blocking Developers’ Ability to Avoid Additional Payments

We are often asked when representing a client in defense of a claim whether the client could avoid the liability asserted by the claimant by potentially buying the cause of action out from under the claimant. The most common...more

Contractors: Beware the Subordination Clause

Did you know that California is the only state in the country in which mechanics liens are a constitutional right? Tis true. Article XIV of the California Constitution states: Mechanics, persons furnishing...more

Developer May Not Extinguish Contractor’s Liens by Foreclosing on Its Own Mortgage, Florida Court Holds

A Florida appellate court recently rejected a real estate developer’s creative effort to shed its property of contractor’s liens. The court applied the venerable principal of mortgage law that a borrower may not extinguish...more

Subcontractor Claims: What Can You Do Once Your General Contractor Files Bankruptcy?

Branch Banking & Trust Co. v Construction Supervision Services, Inc. (In re Construction Supervision Services, Inc.), 753 F.3d 124 (4th Cir. 2014) – After a general contractor filed bankruptcy, several of its...more

Summary of Mississippi’s New Construction Lien Law

Mississippi recently enacted a new construction lien law. This article addresses certain key provisions of the new law - codified at Mississippi Code Annotated § 85-7-401 (Rev. 2014) - that apply to commercial projects. ...more

Pennsylvania Mechanics' Lien Law Amended, Clarifying Open-End Construction Loan Mortgage Priority

On July 9, 2014, Pennsylvania Governor Tom Corbett signed into law Act 117 of 2014, which amends the Pennsylvania Mechanics' Lien Law (MLL), 49 P.S. 1101, et seq., to provide that a construction loan secured by an open-end...more

News for Contractors and Construction Lenders in Arizona and Nevada – The Contractors' Lien May Trump the Bank's

In addition to an arid climate and plenty of sunshine, Arizona and Nevada have something more to offer contractors: a potentially advantageous position over lenders when a project goes bad. When a project derails and...more

Illinois Supreme Court Debates Public Construction Bond Act

Our reports on the oral arguments from the May term of the Illinois Supreme Court continue with Lake County Grading Company, LLC v. The Village of Antioch. Lake County – which comes to the Court from the Second District –...more

Fourth Circuit Reestablishes Subcontractors’ Right to Perfect Liens After Bankruptcy Filing

The Fourth Circuit Court of Appeals recently ruled in the case of In re Construction Supervision Services that the property interest underlying a subcontractor’s lien on funds arises from the date it first furnishes labor or...more

Mississippi's New Construction Lien Law

On Friday, April 11, 2014, Governor Bryant signed Senate Bill 2622 and thus made that bill the new construction lien law, effective immediately, applicable to public, private and residential construction works in Mississippi....more

Construction E-Note - April 9, 2014

In This Issue: - Ongoing Or Completed Operations? Fifth Circuit Finds No Duty To Defend Contractor Under Additional Insured Endorsement - Your Venue, My Bond Claim: A Florida Law Primer - The Condominium Form Of...more

Summary of Senate Bill 2622 - Mississippi's Construction Lien Law

This is the first in a series of alerts exploring how this new law will affect your business. Look for more information regarding this law in the coming weeks. The bill has passed out of conference but it must be enrolled and...more

Out-of-State Design Professional Firms Must Register in Nevada to Enforce Contracts for Compensation in Nevada

Nevada, being a small state with a huge tourist attraction (Las Vegas), has often seen out-of-state design and construction professionals retained to provide their unique talents to create landmark quality design or...more

Court of Appeals Rejects Attempted Restriction of “Mortgage Banker” Priority Provision

On February 20, 2014, the Wisconsin Court of Appeals issued an opinion interpreting the meaning of “mortgage banker” under Wis. Stat. § 224.71(3) and finding that a mortgage holder was entitled to the priority afforded under...more

Filing A Lien When The Work Is Done For A Tenant Rather Than An Owner

Commercial landlords often allow commercial tenants to construct a buildout tailored to their business (e.g., retail stores, restaurants, redesigning office space, etc.). Such tenants hire general contractors who in turn hire...more

Construction E-Note - October 2, 2013

In This Issue: - Burr Appellate Victory Featured in Constructor Magazine - Fifth Circuit Expected to Soon Rule on Constitutionality of Mississippi’s Stop Notice Statute - No Choice in the Matter - Government...more

Under Construction - September 2013: Arizona Court to Architect: You Have One Less Payment Tool than Your Contractor Counterparts

Architects occasionally get into payment disputes with project owners in much the same way as general contractors do. When that relationship sours, and litigation becomes necessary to secure payment, architects and...more

Rogers Towers: Florida’s Construction Lien Act: Who Is a Lienor?

We hear this term, lienor, but it is often misunderstood. One does not have to record a Claim of Lien to be a lienor. The Act provides that anyone who has the right to file a Construction lien is a lienor....more

Rogers Towers: Florida’s Construction Lien Act: What Kind of Work is Lienable

Sometimes it is good to review the basics. For instance, with Florida’s Construction Lien Act, it is easy to remember that alienor may obtain a lien for any unpaid “contract price” related to the permanent improvement of...more

Construction Concepts Tip #5: Developer Protection Against Tenant-Improvements

Before Contracting to Lease Commercial Space, Be Sure to Protect the Property Against Potential Liens - As multiuse high-rises and commercial buildings are once again springing up in areas of Downtown, Brickell, and...more

The Subcontract Contingent Payment Clause: How Does It Affect The Construction Industry?

Originally published in Florida Bar Journal on February 13, 2013. A contingent payment clause in a subcontract is the clause that provides that the subcontractor assumes the risk of owner nonpayment. Such clauses are...more

Revised law is new paint job for construction remedies

Originally published in the San Francisco Daily Journal - December 26, 2012. If the sudden 2008 credit crunch can be likened to an earthquake, then the following flood of mechanics lien and stop payment notice...more

Suppliers Must Take Affirmative Steps to Determine Source of Payments to Protect Construction Lien Claim Rights

In L&W Supply Corp. v. Joe DeSilva, et al., (Docket No. A-2960-10T2, December 19, 2012) (“L&W Supply”), a decision recently approved for publication, the Appellate Division provides guidance to material suppliers seeking to...more

Registering a construction lien against multiple lots in a subdivision

The Ontario Construction Lien Act allows lien claimants to register a single construction lien against more than one lot or property in certain circumstances. This single lien against multiple properties is referred to as a...more

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