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Mechanics lien claimant or lender? Who should have priority?

Georgia Mechanics Lien Law Change Proposed To Boost Priority of Lien Claims

Georgia State Senator Lindsey Tippins has proposed Senate Bill 269 in Georgia to amend the “priorities between liens of mechanics/materialmen.” The proposed amendment is short and easy to understand, essentially resolving the priority battle between lenders and lien claimants by giving priority over the land’s value to lenders and priority on the improvement’s value to contractors, […]

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Mechanics Lien Rights And Unjust Enrichment Claims Cross Paths In Recent Washington Case

Construction projects notoriously involve multiple parties.  The lender is lending money to the property owner, who hires a general contractor, who hires subcontractors, who in-turn hire sub-subcontractors and suppliers. The contracting chain can go on-and-on for seemingly forever. While all parties to a project are interconnected by the project’s budget, schedule, payment processing procedure, and […]

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Big Lake Revisited: MN Supreme Court Keeps Determination of Lien Priority Messy

Back in May, I wrote about lien priority in Minnesota and the “relation back” doctrine, which holds that: All liens, as against the owner of the land, shall attach and take effect from the time the first item of material or labor is furnished upon the premises for the beginning of the improvement, and shall […]

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Does Lien Priority Change If A Lien Release Bond Is Posted?

When there are multiple liens or other encumbrances on a property, and everyone is trying to get paid, the determination of which liens have priority is paramount. I recently discussed an Arizona court’s decision giving a mechanics lien priority over a construction lender. That case was fairly straightforward, and once the facts came out, appeared […]

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Construction Liens: Are There Any Downsides? What Do You Think?

Earlier this month attorney Bill Fig published an article in the Oregon Daily Journal of Commerce titled “The downside of construction liens.”  In it, he argued that industry participants “do not fully understand the ‘foreclosure piece’ of the lien process” and “rely too heavily on the payment protection they perceive a lien provides.” Bill Fig, […]

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Mechanics Lien Priority Examined In Arizona

The main purpose of filing a mechanics lien is to get paid. So, when other parties have an interest in the liened property as well, determining which interest has priority is an especially important determination. The rules setting forth the priority of mechanics liens, like almost every other mechanics lien rule, vary widely from state […]

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Rhode Island Mechanics Lien: Lenders Can Lose Priority Without Fast Action

The Rhode Island Supreme Court issued a mechanics lien opinion last month that will make it more difficult for lenders to get priority over a mechanics lien claim if they fail to take swift protective action after such claims are filed.  The case, Rhode Island Construction Services, Inc. v. Harris Mill, LLC, was decided on […]

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New York Mechanics Lien Priority: Who’s On First?

If a construction project gets saddled with mechanics lien claims and money gets tight, the topic of “Lien Priority” can suddenly become very important. Every state has some method of ranking lien and paying lien claims. These methods typically not only pit mechanics lien claimants against one another, but also against lenders who contribute funds to […]

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Mechanics Lien Priority

Lien Priority: Battle in Texas Over Mechanics Lien Priority Spins On The Relation-Back Doctrine

The Texas Court of Appeals, San Antonio, last month reversed a trial court decision tossing a mechanics lien in Sanchez v. Schroeck. The case breathes new life into a mechanics lien filed by a contractor seeking just $1,456. In Sanchez, a contractor’s mechanics lien was disregarded when a lender foreclosed on the subject project. The […]

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Oklahoma Mechanics Lien Law: 5 Things to Know

Need to brush up on Oklahoma mechanics lien law before filing? The “5 things to know” below will give you a head start on everything you need. Oklahoma Mechanics Lien Rights Are Restricted for Some Any project participant who provides labor or materials for the improvement of a property can file a mechanics lien  in […]

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Kansas Mechanics Lien: When Does It Attach for Priority Purposes?

Yesterday, we posted a list of 5 things to know about Kansas mechanics lien law here on the Lien Blog. One paragraph that immediately caught my eye was all the way at the end of the piece. The priority of mechanics liens, as compared to first mortgages, construction loans, and other encumbrances, is a topic […]

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