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Construction Blog

Our blog is your one-stop-shop for the latest insights, information and legal developments affecting the construction industry.

Construction Blog
July 25, 2018

“Oops… I HAVE BLOWN MY LIEN TIME! Now What Do I Do?”

Mechanic’s liens are without a doubt a subcontractor’s best collection tool when there are payment problems. The sources of its power are (1) the risk that the property will be sold to satisfy the lien, (2) the threat that the owner, in order to prevent foreclosure, may have to pay the subcontractor even if the owner has already paid the general contractor, and (3) the lien may trump the lender’s prior deed of trust.

Construction Blog
March 21, 2018

Important Ruling on Mechanic’s Lien Deadline

On December 5, 2017, the Missouri Court of Appeals clarified a long-standing question as to when a mechanic’s lien action ‘commences’ pursuant to Missouri Revised Statutes § 429.170, which requires a lien claimant to file a petition to enforce its lien within six months of filing its lien claim. In Bray v.Sexton, et al., Cause No. ED105372, the court addressed whether a claimant commences a mechanic’s lien action upon the filing of a petition, or whether a claimant must file a petition and also have a summons issued.

Construction Blog
May 12, 2017

Sub left holding empty bag: No lien, no bond claim, big problem

Subcontractors are accustomed to believing their payments are secured by either a mechanic’s lien or a payment bond, sometimes both. For example, when the public utility, AmerenUE, convinced the Missouri Court of Appeals that due to its quasi-governmental status, it should be immune from mechanic’s liens, the court went on to say that AmerenUE would be required to have its prime contractors post payment bonds for the protection of subcontractors.

Construction Blog
May 12, 2017

Mechanic’s Liens and Bankruptcy: Can You Still File a Mechanic’s Lien after a Bankruptcy has Been Filed?

The answer is yes, if your state mechanic’s lien laws provide that the lien "relates back" to a time before the bankruptcy case was filed. However, if you are in a state where your mechanic’s lien does not relate back, the automatic stay prevents you from filing your mechanic’s lien and may void your mechanic’s lien if filed within 90 days of the bankruptcy filing. This important distinction among statutes has to do with when the lien arises. While all states have mechanic's lien laws, they differ in the manner in which a creditor creates, perfects and/or enforces the lien.