Mechanics Lien

News & Analysis as of

Nevada Supreme Court Ruling Means Additional Liability for Owners, Contractors and Subcontractors

In a decision that will affect owners, contractors and subcontractors, the Nevada Supreme Court, in Cashman Equip. Co. v. W. Edna Assoc., Ltd, recently held that an unconditional release is void if the check does not clear...more

Equitable Subrogation Part Deux: Mechanic’s Lien vs. Later Bank Deed of Trust

This post follows, almost two years to the day, Rick Erickson’s post of August 29, 2014. As noted by Rick Erickson in his August 29, 2014 post, the Arizona Supreme Court in the Weitz case (2014) had determined that equitable...more

2016 Legislative Update: Summary of Changes in School Law

BOARDS OF EDUCATION - ENFORCEMENT OF BINDING PUBLIC ACCESS COUNSELOR OPINIONS - Public Act 99-586 - Effective Date: January 1, 2017 - Individuals who file lawsuits to enforce binding opinions from the PAC...more

Unpaid construction work? Stay calm – and make sure every word of your mechanics lien is accurate

Not getting paid infuriates most contractors and material suppliers. Don’t let that anger cause you to make a bad situation worse by overdoing a mechanics lien. By the time a contractor reaches the point of recording a...more

Appellate Court Notes

Supreme Court Advance Release Opinions: SC19496 - Commission on Human Rights & Opportunities v. Echo Hose Ambulance - The issue of this case was whether or not an unpaid volunteer, in this case for an ambulance...more

Title Insurance Treatment of Mechanic’s Liens

The “Homeowner Amendments” to Ohio Mechanic’s Lien law significantly limits the rights of subcontractors and suppliers to file mechanic’s liens against a homeowner’s property. These apply if the owner has paid the builder in...more

Tennessee Federal District Court Holds That Contractor May Pursue Both Breach of Contract Action in Federal Court and Lien...

Summit Contracting Grp., Inc. v. Ashland Heights, LP, 2016 U.S. Dist. LEXIS 60662 (M.D. Tenn. May 6, 2016) - Ashland Heights, LP (“Owner”) contracted with Summit Contracting Group, Inc. (“Contractor”) to construct an...more

Money, Dirt and Steel: Spring 2016 Newsletter

A snapshot of noteworthy cases from the Spring terms of the North Carolina appellate courts related to lending practices, property rights and construction in North Carolina - Money - FORECLOSURE: - Lender...more

Dealing with Mechanic’s Liens Which Arise After Completion of Construction

Construction is complete on your new home and you are busy settling in to your new surroundings and then you receive notice that a mechanic’s lien has been recorded and is now encumbering your property. You discover that one...more

Construction Financing and Mechanics’ Liens in Connecticut

Bankers and other professionals who have worked on construction loans in states other than Connecticut will know how much of a pain it can be to make construction loan advances. You usually need to perform a title update and...more

Your Invaluable Mechanic’s Lien Rights – Exercise Them!

The right to file a mechanic’s lien is established by state statute, allowing those providing work, services, materials or equipment to a construction project with additional valuable security in the event of non-payment of...more

Missouri Court of Appeals Finds Single Tenant Finish Mechanics Liens Encumber Entire Mall

On April 12, 2016, the Missouri Court of Appeals for the Eastern District handed down an opinion Crafton Contracting Company, et al. v. Swenson Construction, Inc., that is of interest to owner/landlords, their lenders,...more

One Word Makes All The Difference – The Distinction Between “Pay If Paid” and “Pay When Paid” Clauses

Payment clauses in California construction contracts are often complex and multi-layered. This is especially true in contracts between general contractors and their subcontractors. The general does not want to pay the subs...more

Williams Mullen Construction Industry Newsletter - Spring 2016

2016 begins with the issuance of this Construction Industry Newsletter, our fifth. In this issue, we have articles on vapor intrusion, liability for project design, enforcement of mechanic’s lien and bond waiver clauses, and...more

4 Considerations for Mechanic's Liens on Alternative Energy Projects

Securing payment is critical for contractors, and contractors, subcontractors and suppliers often rely on their mechanic’s lien rights. However, on wind and solar electrical generation projects, unusual considerations can...more

Construction Payment Remedies: You May be Able to Skate by, But Why?

My grandfather used to say that “anything worth doing, is worth doing well.” It wasn’t until later that I learned the quote wasn’t his, but a quote from Philip Stanhope the Fourth Earl of Chesterfield, who said in his...more

Perspectives - February 2016

I Just Received Drafts of Construction Loan Documents from My Lender, Now What? I have heard the following statement many, many times over the course of my career: “Do I really need to hire an attorney to close a simple...more

Stop Notices and Mechanic's Liens: Construction Lenders' Nightmares

Historically low interest rates have led to the substantial growth in real estate lending, especially construction lending. Unfortunately, the lead article in the Business Section of the January 28, 2016, issue of the Los...more

Mechanics’ Lien Standard Exception in Owner’s Policies

As you, the buyer, pour over the voluminous stack of documents, disclosures and notices provided to you by the title company in connection with the impending closing of your real estate transaction, you will invariably come...more

Construction News - December 2015

Evolution in the Law – Is a “Right to Repair Act” in Pennsylvania’s Future? Various states have attempted through legislation to reduce litigation and increase constructive engagement in construction projects. One...more

Caution: Pay-When-Paid Clauses Are a Danger Zone in California

Subcontracts often contain payment provisions to deal with the issue that a general contractor wants to be paid by the project owner before the general contractor has to pay its subcontractors. Two common subcontract...more

[Event] Construction Liens: Understand the Complexities; Protect Your Interest - Jan. 13th, Grand Rapids, MI

Please join us to learn about the Michigan Construction Lien Act and other important laws affecting the construction industry. Learn how to use the lien act to secure payment for your work and avoid common...more

Superior Court of Pennsylvania Strictly Construes Procedural Requirements Under Pennsylvania’s Mechanics’ Lien Law

Oakdale Equip. Corp. v. Meadows Landing Assocs., LP, 2015 Pa. Super. Unpub. LEXIS 2067 (Pa. Super. Ct. July 8, 2015) - Meadows Landing Associates, LP (“MLA”) contracted with Richard Lawson Excavating, Inc. (“Lawson”) for...more

Partial Subordination Agreement not Involving or Affecting Mechanics Lien Claimant Priority is Enforceable in Nevada

When visible construction begins, Nevada law says mechanic’s liens attach to the construction site. A construction lender wants to ensure that its deed of trust securing the construction loan has first priority to the...more

Construction E-Note - September 2015

Florida's Department of Business and Professional Regulation requires and issues licenses for entities and individuals to qualify to construct improvements to real property in Florida. Generally speaking, an out-of-state...more

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