Scenario: Can Landscapers File A Mechanics Lien?

By on January 13, 2012

Scenario: Can Landscapers File A Mechanics Lien?

I’m frequently approached by landscaping companies to advise them on the extent of their mechanics lien rights. These companies usually have a mix of business. Sometimes, they’re doing full landscaping projects, re-landscaping a particular property.  Other times, they are doing landscape maintenance in some form.  I’ve even been approached in the past by lawn mowing services, who are interested in filing a lien against properties where they’ve mowed the lawn (without payment) for a period of weeks or months.

So, do landscaping companies have lien rights?  The answer (of course) is sometimes.

To help discuss this issue, there is a Florida case from 1986 that discusses this exact circumstance.  While this is a Florida case, the same principle applies pretty consistently across the nation, although there are exceptions in certain states where landscapers are given much greater and much less latitude as is given in Florida.

The case is Legault v. Suncoast Lawn Services, Inc., where the Fourth District Court of Appeal in Florida explained as follows:

Section 713.01(8), Florida Statutes, requires that an improvement, in order to support a mechanic’s lien, must result in a permanent benefit to the land or other real property…Although planting for landscaping purposes may be considered a permanent improvement, maintenance landscaping services do not bestow a permanent benefit upon the land, and do not entitle the laborer to a mechanic’s lien.

Therefore, a landscaping company “planting for landscaping purposes” is considered contribution of a permanent improvement. However, simple landscaping maintenance services (like lawn mowing) does not qualify.

As usual, the trouble is sorting out all the gray area between what is “planting for landscaping purposes” and maintenance.

This is very similiar to scenarios we posted about in the past.  Actually, you can find a very common theme in all of these scenarios:  When you perform maintenance work or work that does not create a permanent attachment to the property, you don’t have lien rights. If you do create a permanent attachment, you do have lien rights.  With certain exceptions, that’s the golden rule.  Here are the other two similar scenarios:

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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 Blog, 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+.Read Scott's Biography Post Here
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  • http://www.sptreefarm.com Southern Pride Tree Farm Nursery, FL

    This is a great article about the ins and out of a Mechanics Lien. I think you explained it well and it helps to understand how it works.

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  • Lisa

    Thanks for the article. Just upsets me that my husband works hard on “mowing” all our customers lawns and he does not prebill as a courtesy. We have some customers who didn’t pay for 3 months and then canceled without paying. Is there really nothing we can do about this? I have thought about sending letters out and telling customers we are now going to be prebilling. Not sure how well that will go over.
    Thanks again for the article.

    • http://www.zlien.com Scott Wolfe Jr

      Hi Lisa – Thank you for visiting and for your comment. There are a few different ways to respond to your comment, and I can tell you that your small family owned business could really benefit from getting better organized (and strict) on this issue. It is certainly a hard topic to address and an uncomfortable one at times, but it’s also hard to work for free.

      So, the first thing I would say is that while a mechanics lien is probably not right (you probably won’t qualify), don’t completely write it off. You may be in a very liberal state…unlikely, but just something to throw out there.

      The second thing is that you have plenty of rights even without the mechanics lien. It is certainly true that your customers owe you the money if you perform the service. If they don’t pay, you’re entitled to collect it. Most states would legally classify this type of service as an “open account,” meaning that you give your customer a bit of credit and bill them as you perform work. Most states also have laws to protect you on these accounts, and you can send a particular “open account demand letter” that meets your state’s requirements. This demand letter will give you the right to collect interest, late fees, possible penalties, and attorney fees (if you incur them). So, it is definitely a “next step” for your company if payment is slow.

      The third and final thing you want to do is make a POLICY. Make a policy that dictates how long you will wait for an invoice, when you’ll make a reminder call, when you’ll send a reminder letter, when you’ll send the open account letter, when you’ll move onto collections or legal, etc. etc. Then, stick to this policy. Having and keeping to a policy will pay dividends to you.

      Good luck.

  • Lisa

    Thank you very much for your reply. I am in Florida. I am going to search for the open acct letter now. I appreciate you taking the time to reply!!
    Lisa

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