{"id":1724,"date":"2013-06-14T06:50:55","date_gmt":"2013-06-14T12:50:55","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=1724"},"modified":"2013-06-11T16:51:11","modified_gmt":"2013-06-11T22:51:11","slug":"can-i-file-a-mechanics-lien-on-a-building-that-was-never-built-maybe","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/can-i-file-a-mechanics-lien-on-a-building-that-was-never-built-maybe\/","title":{"rendered":"Can I File a Mechanics’ Lien on a Building That Was Never Built? Maybe…"},"content":{"rendered":"

Jennifer M. Horn and Daniel E. Fierstein – June 5, 2013<\/p>\n

The Backdrop<\/strong><\/p>\n

Since the Recession of 2008, the story of the construction project that fell through shortly after breaking ground has repeated itself far too frequently. \u00a0In too many of these situations, financing dries up, leaving owners without project funds to pay general contractors and general contractors without funds to pay early-phase subcontractors who have already performed their work (e.g., demolition, excavation, and site work).\u00a0 With that uplifting backdrop, let\u2019s discuss how these circumstances affect mechanics\u2019 lien rights.<\/p>\n

The Case<\/strong><\/p>\n

As many of our readers know, mechanics\u2019 lien claims are powerful tools for contractors to ensure that they get paid for their work by \u201cencumber[ing] the owner\u2019s property and, if taken to their logical end, force a sale of the property to pay creditors.\u201d \u00a0A recent case in the Superior Court of Pennsylvania brought to light the issue of mechanics\u2019 lien rights on buildings that go un-built.<\/p>\n

In B.N. Excavating, Inc. v. PBC Hollow-A, L.P. and PBC Hollowb, L.P.<\/a>, a site contractor (\u201cBN Excavating\u201d) was hired as a subcontractor to perform excavation work for the proposed construction of a two-building project. \u00a0BN Excavating performed its work, but the buildings were never actually constructed.\u00a0 The contractor that hired BN Excavating never paid for the work, so BN Excavating filed a mechanics\u2019 lien claim on the property.<\/p>\n

The owner argued that BN Excavating\u2019s lien was invalid because the buildings were never actually erected.\u00a0 The Superior Court, however, allowed BN Excavating\u2019s claim to proceed because the excavation work was incidental to planned construction.\u00a0 In other words, the Court held that BN Excavating\u2019s lien rights were tied to the existence of a construction plan, not to the ultimate fulfillment of that plan.<\/p>\n

The Take-Away<\/strong><\/p>\n

For contractors, subcontractors, and suppliers who perform site work can rest easier knowing that your lien rights are tied to the nature of your work and not whether a building is ultimately erected. \u00a0\u00a0It is nonetheless critical for you to supply your attorney with detailed information about the project, so that he or she drafts the mechanics\u2019 lien claim in a way that makes clear that your work was part of a construction plan.<\/p>\n

For owners and developers, understand that the Mechanics\u2019 Lien Law could be unsympathetic to situations in which a construction project falls through before a building is erected.\u00a0 Predecessor work such as demolition and excavation will still be protected under the Mechanics\u2019 Lien Law.<\/p>\n

via Can I file a mechanics’ lien on a building that was never built? Maybe… – Lexology<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Jennifer M. Horn and Daniel E. Fierstein – June 5, 2013 The Backdrop Since the Recession of 2008, the story of the construction project that fell through shortly after breaking ground has repeated itself far too frequently. \u00a0In too many of these situations, financing dries up, leaving owners without project funds to pay general contractors… Continue reading Can I File a Mechanics’ Lien on a Building That Was Never Built? Maybe…<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[172,8],"tags":[27,76],"class_list":["post-1724","post","type-post","status-publish","format-standard","hentry","category-construction-law-2","category-mechanics-lien-rights","tag-construction-law","tag-mechanics-lien","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nCan I File a Mechanics' Lien on a Building That Was Never Built? 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Fierstein – June 5, 2013 The Backdrop Since the Recession of 2008, the story of the construction project that fell through shortly after breaking ground has repeated itself far too frequently. \u00a0In too many of these situations, financing dries up, leaving owners without project funds to pay general contractors… Continue reading Can I File a Mechanics’ Lien on a Building That Was Never Built? 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