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Joint Check Agreements: The Joint Check Rule Can Limit A Material Suppliers Claim For Further Payment – Accept Joint Checks With Caution

Joint check agreements and joint checks are looked upon quite favorably in the construction industry, and for good reason.  While joint checks can be issued in any transaction they are most commonly used in the construction industry, and they usually come along to help guarantee payment or get payment to lower tiered subcontractors or suppliers […]

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Joint Check Agreements: A Great Tool for Credit Managers

Earlier this month I wrote an article about credit managers, outlining what I think are the 3 Primary Traits of a Great Credit Manager. The first trait was that great credit managers “understand all of the hard work comes before credit is actually issued,” mentioning the proactive step of requiring Joint Check Agreements when confronted with […]

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Joint Check Agreements: Waiving Mechanics Lien Rights In A Joint Check Agreement

When you sign a joint check agreement you are signing a contract, and therefore, you want to be very careful. You want to understand what the document says and make certain that it properly reflects the agreement you’re entering into. It is common to see “lien waiver” or “no lien” language within joint check agreements. […]

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Joint Check Agreements: Most Common Misunderstanding And How It Can Burn Your Company

Here is a secret:  If you have a joint check agreement, the paying party may not be obligated to issue a joint check. The joint check agreement you signed may instead just give them the permission to issue such a check.  This is a very common issue and suppliers get burned on the misunderstanding every day. Do […]

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Joint Check Agreements: What Is A Joint Check Agreement?

The construction industry is famous for issuing joint checks and entering into joint check agreements, but these agreements can be entered into by anyone in any industry.  The basic definition of a joint check agreement is a contractual agreement between multiple parties whereby one party agrees to or is given permission to make payment jointly […]

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Joint Check Agreements: Introducing A Blog Series on Joint Checks

Our last blog series – on an important Arizona preliminary notice case – was nearly 5 months ago, and so we’re long overdue for another series of posts on an important issue to credit managers in the construction industry:  Joint Check Agreements or Joint Check Contracts. The topic is not new for the Lien Blog, […]

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Massive Mechanics Lien Opinion Released by Arizona Appeals Court

The Arizona (Division I) Court of Appeals last week issued an opinion with a very robust discussion of mechanics lien laws in Wang Elec Inc v. Smoke Tree Resort LLC.  The decision does not  shake much ground in the state’s mechanics lien laws, but it offers a really terrific discussion of the statutory requirements when […]

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Arizona Mechanics Lien Against Terminated Leasehold Interest May Still Have Purpose

When a tenant commissions construction work, it creates a complex mechanics lien situation. Mechanics lien claims, after all, are filed against the property itself. The result is that the property owner would get penalized for a tenant’s contractual default. States handles this situation differently (of course).  While there are ways to file a claim against […]

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When Must An Arizona Mechanics Lien Be Served On The Owner?

In many cases, Arizona’s mechanics lien law is very similar to California’s mechanics lien law. However, the two statutory schemes are substantially different when it comes to the timeframe for serving a mechanics lien. Recent changes to California’s mechanics lien laws mandated that lien claimants serve the property owner with a copy of the mechanics lien  simultaneously with the […]

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Recent Case Makes Little Points About Arizona’s Preliminary Notice Requirement

There is very little wiggle room in Arizona’s preliminary notice requirement, as we discussed in the recent post “Everyone Must Send Preliminary Notice in Arizona.”  Nevertheless, a recent case from the Arizona Court of Appeals makes it clear that so long as the preliminary notice doucment is sent, the courts will work through the laws to […]

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Arizona Court Rules Owners Cannot Contract Around Lien Exposure From Tenant Improvements

Arizona’s mechanics lien law provides that a lien is authorized whenever work is furnished at the “instance” of the owner or the owner’s agent. A tenant who acts as the owner’s agent can expose the owner to a mechanics lien claim, and it’s well established in Arizona’s case law that a lease requiring and approving […]

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