{"id":897516,"date":"2020-05-27T14:47:55","date_gmt":"2020-05-27T20:47:55","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=897516"},"modified":"2020-05-27T14:47:59","modified_gmt":"2020-05-27T20:47:59","slug":"virginia-mechanics-lien-plus-statute","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/virginia-mechanics-lien-plus-statute\/","title":{"rendered":"Virginia’s Mechanic’s Lien Plus Statute: Making Those in Higher Tiers Personally Liable Separate from and Regardless of Mechanic’s Lien Rights"},"content":{"rendered":"\n

Neil Lowenstein | Vandeventer Black<\/a><\/p>\n\n\n\n

Within Virginia\u2019s mechanic\u2019s lien<\/a> article is a little known, and little used, mechanism providing for personal liability of higher tiers separate from that article\u2019s mechanic\u2019s lien<\/a> rights. The title is \u201cHow owner or general contractor made personally liable to subcontractor, laborer or materialman.\u201d It is actually a very simple process; and all it takes is two steps to effectuate.<\/p>\n\n\n\n

Step One: If<\/em> you have furnished labor or material to a general contractor or a subcontractor (per the Article, \u201csubcontractor\u201d includes all contractors, laborers, mechanics, and persons furnishing materials, who do not contract with the owner but with the general contractor) you, first, need to send a \u201cpreliminary notice\u201d in writing to the owner or his agent or the general contractor, that \u201cstates the nature and character of [your] contract and the probable amount of [your] claim.\u201d That is it. The statute provides no other details as to when the notice is required or other specifics about the notice. Although the presumed intention is that this \u201cpreliminary notice\u201d is required before labor or materials are furnished, the statute does not expressly include such a requirement.<\/p>\n\n\n\n

Step Two: Additionally, \u201cafter the work is done or material furnished\u201d but \u201cbefore the expiration of thirty days from the time the subject building or structure is completed or the work thereon otherwise terminated,\u201d you then are required to provide a \u201csecond notice\u201d that states:<\/p>\n\n\n\n

  1. a correct account, verified by affidavit, of your actual claim against the general contractor or subcontract, for work done or materials furnished;<\/li>
  2. the actual claim against the general contractor or subcontractor for your work done or materials furnished; and<\/li>
  3. the amount due.<\/li><\/ol>\n\n\n\n

    Both notices must be either: a) served using Virginia\u2019s service of process methods; or b) mailed by registered or certified mail and received by the owner or general contractor upon whom personal liability is sought to be imposed; with a return receipt showing delivery being \u201cprima facie\u201d (legal speak for being accepted as correct until proven otherwise) of receipt. While any \u201cbona fide agreement\u201d for deductions for failure or refusal of the general contractor to comply with his contract shall be binding on the claimant seeking personal liability, that is an affirmative defense to the 43-11 notice and must be proven by the owner.<\/p>\n\n\n\n

    Like mechanic\u2019s lien defenses, more generally, however, the lower tier claim at the time of the second notice cannot exceed the amount for which the next higher tier is liable to the tier above. In other words, if no further payment is due to the general contractor from the owner, that effectively \u201ccuts off\u201d the owner\u2019s liability to the claimant; and, similarly, if no further payment is due to the first tier subcontractor from the general contractor, that cuts off the liability to the subcontractor\u2019s lower tier supplier or laborer. So, while not quite the equivalent of a \u201cnotice of claim of lien against funds\u201d as some jurisdictions provide (like North Carolina) because of such defenses; the Virginia Code \u00a7 43-11 notice statute provides both practical, and legal, basis for lower tier laborer and supplier claims against owners and general contractors \u2013 \u2013 separate from Virginia\u2019s mechanic\u2019s lien processes.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Neil Lowenstein | Vandeventer Black Within Virginia\u2019s mechanic\u2019s lien article is a little known, and little used, mechanism providing for personal liability of higher tiers separate from that article\u2019s mechanic\u2019s lien rights. The title is \u201cHow owner or general contractor made personally liable to subcontractor, laborer or materialman.\u201d It is actually a very simple process;… Continue reading Virginia’s Mechanic’s Lien Plus Statute: Making Those in Higher Tiers Personally Liable Separate from and Regardless of Mechanic’s Lien Rights<\/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":[10772],"tags":[9895,184,357],"class_list":["post-897516","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-law","tag-advise-consult","tag-mechanics-lien-law","tag-virginia","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nVirginia's Mechanic's Lien Plus Statute: Making Those in Higher Tiers Personally Liable Separate from and Regardless of Mechanic's Lien Rights - 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