{"id":898235,"date":"2020-11-19T12:22:51","date_gmt":"2020-11-19T19:22:51","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=898235"},"modified":"2020-11-19T12:22:54","modified_gmt":"2020-11-19T19:22:54","slug":"equitable-lien-unjust-enrichment","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/equitable-lien-unjust-enrichment\/","title":{"rendered":"Equitable Lien Designed to Prevent Unjust Enrichment"},"content":{"rendered":"\n<p>David Adelstein | <a href=\"https:\/\/www.floridaconstructionlegalupdates.com\/equitable-lien-designed-to-prevent-unjust-enrichment\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Florida Construction Legal Updates<\/a><\/p>\n\n\n\n<p>There are instances where a party does not have construction lien rights but, nevertheless, feels the need to pursue an\u00a0<strong><a href=\"https:\/\/www.myconstructionexpert.com\/blog\/want-to-foreclose-mechanics-lien-get-invoices-straight\/\" target=\"_blank\" rel=\"noreferrer noopener\">equitable lien<\/a><\/strong>\u00a0against the real property.<\/p>\n\n\n\n<p><strong>No different than a construction lien, an action to enforce an equitable lien has a&nbsp;<u>one-year limitations period<\/u>&nbsp;if it arises from the \u201cfurnishing of labor, services, or material for the improvement of real property.\u201d<\/strong>&nbsp; Fla. Stat. s. 95.11(5)(b).&nbsp; In other words, an equitable lien\u2013not nearly as powerful as a construction lien because a construction lien is recorded in the official public records whereas an equitable lien is not\u2013is tied to an analogous one-year limitations period for those liening for construction improvements.&nbsp; (Notably, if the equitable lien arises outside of the construction improvement context, the one-year statute of limitations would not apply.&nbsp;&nbsp;<em>See Gabriji, LLC v. Hollywood East, LLC,<\/em>&nbsp;45 Fla. L. Weekly D2251a (Fla. 4<sup>th<\/sup>&nbsp;DCA 2020) (one-year statute of limitations period does not apply to all equitable liens such as those that do not arise from furnishing labor, services, or material for the improvement of real property)).<\/p>\n\n\n\n<p><strong>An equitable lien is designed to prevent unjust enrichment when there is no adequate remedy at law although it is a completely separate cause of action than a cause of action for unjust enrichment<\/strong>.&nbsp;&nbsp;<em>Gabriji, supra<\/em>. &nbsp; An equitable lien:<\/p>\n\n\n\n<p><strong>[I]s \u201c \u2018a right granted by a court of equity, arising by reason of the conduct of the parties affected which would entitle one party as a matter of equity to proceed against\u2019 certain property.\u201d&nbsp; \u201cSuch a lien \u2018may be declared by a court of equity out of general considerations of right and justice as applied to the relations of the parties and the circumstances of their dealings.\u2019 \u201d&nbsp;<\/strong><\/p>\n\n\n\n<p><em>Gabriji, supra<\/em>&nbsp;(internal citations omitted).<\/p>\n\n\n\n<p>However, importantly, there is also law that supports that a claim for an equitable lien must be supported by \u201cevidence of fraud, misrepresentation, or other affirmative deception.\u201d&nbsp;&nbsp;<em>Wal-Mart Stores, Inc. v. Ewell Industries, Inc<\/em>., 694 So.2d&nbsp; 756, 757 (Fla. 1<sup>st<\/sup>&nbsp;DCA 1997);&nbsp;<em>Gordon v. Flamingo Holding Partnership<\/em>, 624 So.2d 294, 297 (Fla. 3d DCA 1993).&nbsp; Such evidence will likely be needed to support an equitable lien in a construction context which is pursued because a party did not properly perfect construction lien or payment bond rights. &nbsp;An equitable lien may be an appropriate cause of action in certain instances as an argument to pursue recourse for non-payment where the cause of action is designed to foreclose a lien based 0n equity\u2013not a statute or written instrument.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>David Adelstein | Florida Construction Legal Updates There are instances where a party does not have construction lien rights but, nevertheless, feels the need to pursue an\u00a0equitable lien\u00a0against the real property. No different than a construction lien, an action to enforce an equitable lien has a&nbsp;one-year limitations period&nbsp;if it arises from the \u201cfurnishing of labor,&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/equitable-lien-unjust-enrichment\/\">Continue reading <span class=\"screen-reader-text\">Equitable Lien Designed to Prevent Unjust Enrichment<\/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":[9895,11098,11359,184],"class_list":["post-898235","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-law","tag-advise-consult","tag-construction-lien-rights","tag-equitable-lien","tag-mechanics-lien-law","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Equitable Lien Designed to Prevent Unjust Enrichment - Advise &amp; 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