Which State’s Mechanics Lien Laws Apply When Parties From Multiple States?

Which States Mechanics Lien Laws Apply When Parties From Multiple States?

It’s a frequent scenario in our current marketplace that parties working on a construction project are from multiple states. The prime contractor may be based in Nevada, with supplies being shipped from Oregon and Texas, and with subcontractors from Washington, Wisconsin and Virginia.  It’s just a fact of business.

This blog posts answers a question we frequently get in these circumstance, which is: What law applies when parties are from so many different places? More specifically, the prime contractor in Nevada who is working on a project located in California may wonder whether he must comply with Nevada’s notice and lien requirements, or with California’s?

It’s easy to get confused because construction companies aren’t lawyers, and there’s an entire body of law dedicated to “conflict of laws.” Insofar as the mechanic lien law requirements are concerned, however, the answer is very, very simple. The laws of the state where the project is located applies. Every time, without any exception.

So, if you’re working on a project in California, it doesn’t matter where you’re based or where anyone on the project is based.  It doesn’t even matter if everyone working on the project is from Texas, and the property is owned by a Texas corporation.  The property is located in California and California law applies. Period.

Scott Wolfe Jr

About Scott Wolfe Jr

Scott Wolfe Jr. is the CEO of zlien, a company that provides software and services to help building material supply and construction companies reduce their credit risk and default receivables through the management of mechanics lien and bond claim compliance. He is also the founding author of The Lien and Credit Journal, a leading online publication about liens, security instruments and getting paid on every account. Scott is a licensed attorney in six states with extensive experience in corporate credit management and collections law, with a specific emphasis on utilizing mechanic liens, UCC filings and other security instruments to protect and manage receivables. You can connect with him via Twitter, LinkedIn and Google+.