In ParkWest Homes, LLC v. Barnson (Feb. 4, 2013) (ParkWest II), the Idaho Supreme Court affirmed the district court’s ruling that where a property encumbered by a mechanics lien is not brought to foreclosure against an interested party within six months of the filing of the lien, the court cannot enforce the lien against that
The Stop Notice: Another (Possible) Way to Get Paid
By Karl Oles on
Posted in Construction Liens, Liens
In my latest Daily Journal of Commerce Construction column, I discuss the stop notice remedy. When a subcontractor or supplier goes unpaid on a private project, one possible remedy is to file a lien against the land or improvements. The lien remedy has its limits, however. If you start work after the project has gotten…
Nevada Lenders Beware! Mechanic’s Liens Not Easily Avoided
Following the market crash in 2008-09, the $2.8 billion Fontainebleau development in Las Vegas was halted with 70 percent of the construction completed. Naturally, numerous mechanic’s liens were filed by contractors, subcontractors, professionals and suppliers ("claimants"). In the bankruptcy proceeding, the lenders asserted novel and potentially legally destabilizing theories against the claimants’ rights: a.) the…
Five Tips for Defending a Lien Claim
By Stephen Kelly on
Posted in Liens
Lien claims can be an unfortunate reality of even the best-laid development plans. Owners or developers facing a lien claim can be held liable to lenders, landlords or investors for liens filed on project property if they are not careful. When faced with lien claims, I recommend that owners and developers ask five questions:
- Is
…
Starting a New Project? Don’t Forget to Send a Notice of Right to a Lien to Trust Deed Holders and Mortgagees
By Sean Gay on
Posted in Construction Liens, Liens
Under Oregon law, a construction lien generally has priority over a trust deed or mortgage on an improvement. ORS 87.025(1). If a construction lien claimant has priority over a trust deed or mortgage, the construction lien claimant will get paid from the proceeds of a foreclosure sale before the trust deed holder or mortgagee. Having…
California Appellate Court Affirms That Mechanic’s Lien Foreclosure Period Is Tolled During Bankruptcy Proceeding
By Tamara Boeck on
Posted in Bankruptcy, Liens
In Pioneer Construction, Inc. v. Global Investment Corp. (Dec. 21, 2011, No. B225685), Cal.App.4th [2011 WL 6382113], the Second District Court of Appeal recently affirmed a timely topic in this depressed construction market: lien claimants must protect their rights, and buyers of property out of bankruptcy must verify the validity of lingering lien claims.…