Category: Liens

Subscribe to Liens RSS Feed

New Washington Case Strictly Construes Lien Statute and Rejects Warranty Work as Basis to Extend Lien Filing Period

In its March 11, 2021 opinion, Division Three of the Washington Court of Appeals considered whether the 90-day period to record a claim of lien is extended by a contractor performing work after substantial completion to correct nonconforming work – usually referred to as “warranty work.”  In the case of Brashear Electric, Inc. v. Norcal … Continue Reading

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 … Continue Reading

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 … Continue Reading

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 … Continue Reading

Recent Washington Court Decision Examines Whether Lien Claim on Condominium Unit Was Frivolous (Subject to Release) or Excessive (Subject to Reduction)

On February 11, 2019, Division One of the Washington Court of Appeals issued an opinion in the case of Woodley v. Style Corp. d/b/a Servpro of Shoreline/Woodinville, No. 77352-6-I (Wash. Ct. App. Feb. 11, 2019).  The case highlights the care that should be exercised in filing a lien claim for services furnished to improve a … Continue Reading

Practical Law and Stoel Rives LLP Publish New Lien Law Resources for Washington

Practical Law, a Thomson Reuters company and division of West Publishing Corporation that produces online legal resources for attorneys, is pleased to partner with Stoel Rives LLP to present its Washington Construction Lien Practice Note and Workflow Checklist. The resources, now published and available through Practical Law’s online services, afford access to valuable content about construction … Continue Reading

Can a Contingent Payment Provision Affect a Construction Lien Claim in Washington?

During Seattle’s current construction boom, general contractors and subcontractors may be concentrating more on finalizing work on their projects than on worrying about the niceties of their construction contract documents. It is no less prudent now, however, for the parties to remain aware of their contractual rights and responsibilities—especially those tied to payment.  One payment … Continue Reading

Advance Contractual Lien Releases in Washington – An Enforceable Shield or Unintended Liability?

As the construction boom continues in Washington (and especially in Seattle), owners and developers look for ways to mitigate risk on projects. Risk mitigation is often accomplished through negotiated terms and conditions of the parties’ contractual agreements. In my latest Daily Journal of Commerce article, I explore the validity of advance contractual lien releases and … Continue Reading

Stoel Rives’ Construction & Design Group Selected for Practical Law Publication on Construction Lien Claims

Practical Law, a Thomson Reuters Company and division of West Publishing Corporation that produces online resources for attorneys across myriad legal topics, recently invited members of the Construction & Design Group of Stoel Rives’ Portland and Seattle offices to provide construction lien resources for Oregon and Washington.  According to Kate Kruk, Practical Law’s Content Acquisition … Continue Reading

Calling All Owners and Contractors! Pay Attention to Disclosure Statement Requirement to Protect Against or Preserve Lien Claims in Washington

Lurking in the depths of the Contractor Registration Act (Chapter 18.27 RCW) is an important statute that has the potential to eviscerate lien rights if not satisfied by contractors furnishing improvements on certain projects in Washington. RCW 18.27.114 requires that contractors working on residential projects or commercial projects of limited scope furnish a Model Disclosure … Continue Reading

Yes, Contractor Licensing May Be Required Under California Law Even if the Contractor Does Not Physically Build Anything Itself

It seems that almost weekly, and certainly monthly, I receive a call or inquiry from colleagues and/or prospective clients as to whether a license is really required if the prospective “contractor” is not actually building anything but is merely facilitating a “deal” or is hiring otherwise qualified and licensed contractors and trades. Virtually every time … Continue Reading

Key Aspects of Joint Check Agreements

Joint checks are a useful tool in the construction industry to give owners and prime contractors peace of mind that lower-tier subcontractors or suppliers are being paid and potential lien claims are avoided.  But joint check agreements and the subsequent actions can result in unintended consequences and liability. In my recent article for the Daily … Continue Reading

Contract Conflict Bears a Cautionary Tale

In the haste to get design and construction moving on real estate projects, one may lose sight of important lien priority issues when negotiating and executing contracts. In my recent article for the Daily Journal of Commerce, I discuss a notable Washington appellate case that addresses a lien priority issue in the context of multiple … Continue Reading

Lien Rights of Employee Benefit Plans Clarified in Washington

A question left open in Stoel Rives’ recent Washington lien law treatise relates to the lien rights of employee benefit plans. The rights granted in RCW 60.04.011(4) (where benefit plans are included in the definition of “furnishing labor”) were called into question by two Washington Supreme Court decisions barring employee benefit plans from pursuing lien-like … Continue Reading

Idaho Verifies That Priority Position Remains Relevant After Bond Posting

In a case of first impression in Idaho, the Supreme Court in American Bank v. Wadsworth Golf Construction Co. of Southwest, No. 39415 (Idaho Aug. 16, 2013) (slip op.), determined that priority of lien filings on a property remain subject to a lien priority analysis even after a statutory lien release bond is filed to … Continue Reading

Should Design Professionals in Washington File a Pre-Claim Notice to Protect Lien Rights? Yes!

Washington’s lien laws, like those of other states, set forth pre-claim notice requirements that, if not satisfied, may result in the forfeiture of lien rights. The applicable statute, RCW 60.04.031, presents an interesting array of “if-then” scenarios in which the notice requirements are imposed. Generally, unless falling under one of three exempted categories, RCW 60.04.031 … Continue Reading

Contracting For Construction In Oregon? You Need to Know the Law

In my latest Daily Journal of Commerce Construction column, I discuss the need to know Oregon construction contracting law to avoid unwanted consequences. In Oregon, construction contracts are subject to a wide variety of legal requirements, many of which are often ignored or, in some cases, violated with disastrous results. Following link will provide a summary … Continue Reading

A Valid Contract Limits the Amount of a Mechanic’s Lien, Even Against a Party with No Direct Contract with a Contractor

A California appellate court recently held that the value of an original construction contract is admissible as evidence to limit a contractor’s right to recovery under Civil Code section 3123(a), even by a property buyer that was not a party to the construction contract. Appel v. Los Angeles Superior Court (CA No. B244590, Mar. 11, 2013). The … Continue Reading

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 … Continue Reading

Five Tips for Defending a Lien Claim

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 … Continue Reading

Starting a New Project? Don’t Forget to Send a Notice of Right to a Lien to Trust Deed Holders and Mortgagees

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 … Continue Reading
LexBlog