{"id":898709,"date":"2021-04-29T12:37:27","date_gmt":"2021-04-29T18:37:27","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=898709"},"modified":"2021-04-29T12:37:30","modified_gmt":"2021-04-29T18:37:30","slug":"preliminary-notice-utah-lien-registry","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/preliminary-notice-utah-lien-registry\/","title":{"rendered":"Utah Owners Cannot Simply Rely on Construction Lien Registry Search Results to Find Valid Preliminary Notices"},"content":{"rendered":"\n

Mark Morris and Tyson Prisbrey | Snell & Wilmer<\/a><\/p>\n\n\n\n

In December 2020, the Utah Court of Appeals found that, because a contractor\u2019s preliminary notice<\/a> contained the statutorily required information, although in unconventional order, the notice was valid.<\/p>\n\n\n\n

In Zion Village Resort<\/em>, Pro Landscape U.S.A. performed work on a condominium development and filed preliminary notices with the Utah State Construction Registry pursuant to the state construction lien laws. Pursuant to Utah Code Ann. \u00a7 38-1a-501(1)(h)(i), a preliminary notice must include certain information, including the \u201cname, address, telephone number, and email address of the person providing the construction work.\u201d In Pro Landscape\u2019s preliminary notices under the line \u201cPerson Furnishing Labor, Service, Equipment, or Material,\u201d the Pro Landscape listed \u201cChad Hansen,\u201d and provided an address, email address and telephone number. Under the line provided for \u201ccomments,\u201d the notices stated that the \u201cservices [were] provided by Pro Curb USA LLC DBA Pro Landscape USA.\u201d Pro Landscape later filed construction liens on various parts of the development.<\/p>\n\n\n\n

Zion Village filed a petition to nullify the construction liens, arguing that the they were invalid because Pro Landscape failed to file valid preliminary notices as required by statute. The trial court concluded that the notices were filed by Chad Hansen, not Pro Landscape, and therefore the notices \u201cneglected to include such basic information as the identity of the actual lien claimant.\u201d<\/p>\n\n\n\n

On appeal, Pro Landscape argued that the preliminary notices contained all the statutorily required information, including the name, address, telephone number and email address of the person providing the construction work. Zion Village argued that because Chad Hansen rather than Pro Landscape is listed on the line asking for identification of the \u201cPerson Furnishing Labor, Service, Equipment or Material,\u201d the notices were deficient.<\/p>\n\n\n\n

The court found that Pro Landscape, by identifying itself in the comments section of the preliminary notice, had substantially complied with the statute. \u201cWhile Pro Landscape may have set forth the required information in an unconventional sequence, the preliminary notices it filed contained all statutorily required information.\u201d<\/p>\n\n\n\n

Zion Village argued that the court\u2019s holding frustrated the practical functioning and purpose of the registry, which serves as a database that allows interested persons to search for preliminary notices on a property. When Zion Village searched the registry\u2019s database for preliminary notices filed by Pro Landscape, none turned up in the result because \u201cChad Hansen\u201d and not Pro Landscape was listed on its notices as the \u201cPerson Furnishing Labor, Service, Equipment or Material.\u201d Zion Village asserted that interested persons should be able to rely on the search results without having to searching through all preliminary notices individually. The court was not persuaded, noting that the construction lien statute mandates the application of a \u201csubstantial compliance\u201d standard, rather than a strict compliance standard.<\/p>\n\n\n\n

The court\u2019s holding in Zion Village <\/em>stands as a warning to property owners that one cannot rely on the search results to determine whether a party has a preliminary notice on file. Given the \u201csubstantial compliance\u201d standard, as long as a preliminary notice has the statutorily required information in the notices somewhere, it is valid.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mark Morris and Tyson Prisbrey | Snell & Wilmer In December 2020, the Utah Court of Appeals found that, because a contractor\u2019s preliminary notice contained the statutorily required information, although in unconventional order, the notice was valid. In Zion Village Resort, Pro Landscape U.S.A. performed work on a condominium development and filed preliminary notices with… Continue reading Utah Owners Cannot Simply Rely on Construction Lien Registry Search Results to Find Valid Preliminary Notices<\/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":[9895,184,9105,106],"class_list":["post-898709","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-law","tag-advise-consult","tag-mechanics-lien-law","tag-preliminary-notice","tag-utah","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nUtah Owners Cannot Simply Rely on Construction Lien Registry Search Results to Find Valid Preliminary Notices - 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