Because construction liens can affect other interests in real property, both public notice and actual notice to certain parties with recorded interests are essential to a fair lien system. In Oregon, timely recording a claim of lien with the county recorder provides the required public notice and is a prerequisite to a valid lien. Oregon’s
Construction Liens in Washington: Essential Knowledge for Construction Professionals
Why Understanding Liens is Important
Construction liens are a critical aspect of the construction industry, providing security for those who contribute labor, materials, or services to a project. Understanding construction liens is essential for disparate parties involved in private construction since liens, as security interests, can significantly impact payment rights and property title. Ignoring lien
Washington Supreme Court Weighs in on Notice Requirements for Labor Liens: Velazquez Framing LLC v. Cascadia Homes, Inc.
Washington’s construction lien statute, RCW 60.04, balances the interests of persons performing work to improve real property with the interests of property owners in avoiding the necessity of paying for the same work twice. An unpaid contractor can assert a lien against property it has improved, but the owner has a right to notice that the work is taking place. On commercial projects, a contractor that is not under contract with the owner or prime contractor (a “lower-tier” subcontractor) usually must give a pre-claim notice to the owner to preserve its lien right. A contractor supplying only labor is expressly exempt from this requirement, though there has been some question regarding whether a lower-tier subcontractor providing both labor and materials is subject to the notice requirement.
Considerations for Contesting a Frivolous Lien in Washington
For any owner or developer of a private construction project—and especially those looking to refinance or sell the property—lien claims can pose serious challenges as well as being a source of great frustration. In my latest column for the Daily Journal of Commerce, I outline some legal options for a Washington construction project owner
Mitigation of Risk in the Age of COVID-19: Ten Ways Owners Can Protect Themselves Against Lien Claims in Washington
Among the many effects on the U.S. economy of the COVID-19 pandemic, construction projects that started before it began but were halted in its aftermath may be slow to resume or be abandoned altogether thanks to funding issues. Contractors, subcontractors, and suppliers feel immense pressure to protect and preserve their rights to payment for work
Disgorgement Liability in CA for Unlicensed Contractors Runs One Year from Completion or Cessation
In a very recently published case dealing with issues of first impression in California, here, the Second Appellate District in Los Angeles determined that the disgorgement penalty under BPC 7031(b) triggers a one-year statute of limitations given that it is a penalty, and the cause of action accrues from either the completion or cessation
Be Aware (or Beware!) of Extended Mechanic’s Lien Rights
Oregon law requires a lien claimant to perfect its lien by recording it within 75 days of ceasing to “provide labor, rent equipment, or furnish materials or 75 days after completion of construction, whichever is earlier.” An unpaid contractor must record its lien 75 days after completion of its major contract work and removal of
Recession Warnings Pile Up: Harbinger of Liens?
Some economic indicators point to a recession in the not-too-distant future, and parties involved in construction projects should take steps to avoid (or perfect) liens and protect their rights if there is a downturn. The complexities of Oregon’s lien laws are best negotiated with the assistance of experienced counsel. In my inaugural article for the
Another Washington Lien Law Resource From Practical Law
Practical Law, a division of Thomson Reuters and an affiliate of Westlaw, now offers another lien law resource for Washington practitioners. With contributions from Stoel Rives LLP’s Seattle-based construction attorneys Karl Oles, Bart Reed, and Loni Hinton, this new lien resource includes a “flowchart” of important concepts and timelines associated with preserving, perfecting, enforcing, and
Washington Court of Appeals Provides Guidance Regarding Frivolous and Excessive Lien Claims Against Condominium Projects
Recently, Division One of the Washington Court of Appeals issued an opinion providing guidance regarding the scope of Washington’s frivolous lien statute and the subtle intricacies of preparing and filing a construction lien against a condominium project. This article provides a high-level overview of how to file a lien against a condominium project in Washington