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Pay If Paid Clauses: What Happens When They’re Disallowed, But Not Entirely?

We have seen in recent posts that pay if paid clauses are generally disfavored and subject to strict review by courts. While pay if paid clauses are still enforceable in many states, provided the correct specific language is used, the clear trend is toward treating these clauses with greater scrutiny, or even disallowing them altogether. […]

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Indiana Weighs In On Mechanics Lien Claimants Who Identify Themselves Incorrectly

What’s in a name?  In the mechanics lien world any tiny mistake can invalidate an entire claim, and surprisingly over the past year, claimants have been misidentifying themselves quite a bit across America. If a claimant incorrectly identifies themselves in a lien claim or a notice is that cause to invalidate it?  How big of […]

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Indiana Mechanics Lien Law: 5 Things to Know

Suppliers to Suppliers Do Not Have Indiana Mechanics Lien Rights Contractors, subcontractors, suppliers to prime or sub contractors, laborers, and equipment lessors are all eligible to file an Indiana mechanics lien. Unfortunately, though, as is the case in many states, suppliers to suppliers do not have mechanics lien rights in Indiana. Deadline to File Indiana […]

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Indiana Mechanics Lien Law: Court of Appeals Gets Preliminary Notice Requirement Right – on the Second Try

I recently discussed the preliminary notice requirements as set forth in Indiana lien law. In that post, I mentioned that all parties not in direct contractual relation with the property owner and who provided labor or materials to a single or double family residential project must provide preliminary notice, and, that there had been significant confusion […]

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Indiana Mechanics Lien Law: Preliminary Notice Requirements

Gaining the benefit of a mechanics lien may, at first glance, seem like a one-step process: simply file a lien after non-payment on a construction project. In many states, however, multiple steps are required to preserve a right to mechanics lien protection.  Specifically, in order for a lien to be valid, many states require a lien claimant to […]

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No-Lien Clauses and Personal Liability in Indiana

A recent case out of Indiana, Feitler v. Springfield Enterprises, addressed two interesting issues: whether “no-lien clauses” in construction contracts are valid and whether parties who are prevented from filing mechanics liens due to no lien clauses can still recover under Indiana’s personal liability statute. What is a No-Lien Clause? As we’ve discussed in the past, only a minority of states […]

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Can Mechanics Lien Deadlines Expire While You’re Still On The Project?

This sounds like it has an obvious answer. Of course, lien law nuances prove otherwise as there are some scenarios when your right to file a mechanics lien could actually expire while you’re still performing work or furnishing materials. Scenario 1: You Enter Into Two Contracts On One Project Last week, the Indiana Court of […]

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Effective Period of Indiana Mechanic’s Lien Can be Shortened – Watch Out

As Scott and I have mentioned many times on this blog – mechanic’s liens do not last forever.  At some point, the lien claimant is required to initiate foreclosure proceedings (or, occasionally other enforcement proceedings) or the lien will expire.  Also, as we have noted, the time a lien will encumber property before the deadline […]

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Can Pay When Paid Clauses Destroy Your Mechanics Lien or Bond Claim Rights?

If you’re unpaid on a construction project, you usually have mechanics lien rights and/or the right to recover under a payment bond. The magic of mechanics lien or bond claim rights is that it empowers subcontractors and suppliers to get paid regardless of what happened with finances “upstream,” such that if a general contractor doesn’t get paid, […]

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Suppliers to Suppliers Rarely Catch A Break In Mechanics Lien Laws

Earlier this year we wrote about Suppliers to Suppliers and how they are rarely qualified to file a mechanics lien.  This week, an unpublished decision from the Indiana Court of Appeals demonstrated just how difficult it is for these parties to get lien protection. In Indiana, there are two statutes available to construction participants, their […]

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Written Contract Not Required To File Indiana Mechanic’s Lien – Even When Required

A few months ago, I wrote a post about a popular mechanic’s lien myth:  Myth: You Can’t File A Mechanic’s Lien Without A Written Contract.  Despite the common misconception, mechanic lien claims can be filed virtually anywhere in the United States without a written contract. Mechanics lien claims can be made against the project based […]

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