{"id":902189,"date":"2024-01-30T15:59:36","date_gmt":"2024-01-30T22:59:36","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=902189"},"modified":"2024-01-30T15:59:36","modified_gmt":"2024-01-30T22:59:36","slug":"washington-supreme-court-weighs-in-on-notice-requirements-for-labor-liens-velazquez-framing-llc-v-cascadia-homes-inc","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/washington-supreme-court-weighs-in-on-notice-requirements-for-labor-liens-velazquez-framing-llc-v-cascadia-homes-inc\/","title":{"rendered":"Washington Supreme Court Weighs in on Notice Requirements for Labor Liens:\u00a0Velazquez Framing LLC v. Cascadia Homes, Inc."},"content":{"rendered":"\n<p>Karl Oles | <a href=\"https:\/\/www.aheadofschedulelaw.com\/2024\/01\/articles\/states\/washington\/washington-supreme-court-weighs-in-on-notice-requirements-for-labor-liens-velazquez-framing-llc-v-cascadia-homes-inc\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Ahead of Schedule<\/a><\/p>\n\n\n\n<p>Washington\u2019s construction lien statute, RCW 60.04, balances the interests of persons performing work to improve real property with the interests of property owners in avoiding the necessity of paying for the same work twice. An unpaid contractor can assert a lien against property it has improved, but the owner has a right to notice that the work is taking place. On commercial projects, a contractor that is not under contract with the owner or prime contractor (a \u201clower-tier\u201d subcontractor) usually must give a pre-claim notice to the owner to preserve its lien right. A contractor supplying only labor is expressly exempt from this requirement, though there has been some question regarding whether a lower-tier subcontractor providing both labor and materials is subject to the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/washington-supreme-court-reaffirms-compliance-contractual-notice-requirements\/\">notice requirement<\/a>.<\/p>\n\n\n\n<p>This question was raised in&nbsp;<em>Velazquez Framing, LLC v. Cascadia Homes, Inc.&nbsp;<\/em>The owner, Cascadia Homes, hired a contractor, High End, to construct a home. High End subcontracted some of the work to Velazquez Framing. Velazquez gave no pre-claim notice, and it later asserted a lien against Cascadia\u2019s property for unpaid labor and materials. The trial court and Court of Appeals both ruled that Velazquez\u2019s lien was invalid for lack of pre-claim notice. The Washington Supreme Court reversed in a unanimous opinion.<\/p>\n\n\n\n<p>The Supreme Court noted that RCW 60.04.021 allows all persons furnishing labor, professional services, materials, or equipment for the improvement of real property to pursue lien claims against that property, except as provided in RCW 60.04.031, the pre-claim notice statute. Section .031 requires \u201cevery person furnishing professional services, materials, or equipment\u201d to give a pre-claim notice. By contrast with section .021, labor is not mentioned. Section .031 excepts prime and first-tier subcontractors and \u201claborers whose claim of lien is based solely on performing labor\u201d from the pre-claim notice requirement. Velazquez did not fit into any of those statutory exceptions.<\/p>\n\n\n\n<p>In ruling against Velazquez, the Court of Appeals concluded that a \u201cplain language\u201d reading of the lien statute appeared to lead to one of two unreasonable results.&nbsp;<em>Velazquez Framing, LLC v. Cascadia Homes, Inc.<\/em>, 24 Wash. App.2d 780, 790, 521 P.3d 257 (2022). If labor claims are exempt from the pre-claim notice requirement (because \u201clabor\u201d is not mentioned in the lead-in sentence), then the express exception for labor claims is superfluous. On the other hand, if lower-tier subcontractors providing labor are subject to the pre-claim notice requirement, this seems inconsistent with the omission of the word \u201clabor\u201d in the lead-in sentence. The Court of Appeals, after reviewing the legislative history, concluded that individual laborers are not subject to the pre-claim notice requirement, but lower-tier contractors providing labor are subject to it.&nbsp;<em>Id<\/em>., 24 Wash. App.2d at 792-793.<\/p>\n\n\n\n<p>The Washington Supreme Court disagreed, holding that section .031 \u201cunambiguously\u201d did not require Velazquez to give a pre-claim notice for its labor lien, though it did require Velazquez to give notice for its material lien. The result was that Velazquez could proceed with its claim for labor if its labor claim could be segregated from the (barred) claim for materials. The case was remanded to give Velazquez an opportunity to do this.<\/p>\n\n\n\n<p>Many lower-tier contractors provide a combination of labor, materials, and equipment. The&nbsp;<em>Velazquez<\/em>&nbsp;decision gives such contractors an opportunity to pursue a labor lien claim despite a lack of pre-claim notice. The claim will be limited to unpaid labor, and the claimant will need to be able to show what portion of its unpaid contract price pertains to labor as opposed to materials or equipment. Lower-tier contractors can avoid the risk faced by Velazquez and preserve their right to a lien for labor, materials, and equipment by giving a timely pre-claim notice.<\/p>\n\n\n\n<p>One interesting aspect of the\u00a0<em>Velazquez<\/em>\u00a0decision is the court\u2019s willingness to divide a lien claim into labor and other components. This division may have consequences beyond the pre-claim notice issue. For example, liens for labor have priority over other construction liens pursuant to RCW 60.04.181. In a priority contest, a contractor may find it useful to divide its lien so that the labor portion can have priority over other claims on the property.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Karl Oles | Ahead of Schedule Washington\u2019s construction lien statute, RCW 60.04, balances the interests of persons performing work to improve real property with the interests of property owners in avoiding the necessity of paying for the same work twice. An unpaid contractor can assert a lien against property it has improved, but the owner&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/washington-supreme-court-weighs-in-on-notice-requirements-for-labor-liens-velazquez-framing-llc-v-cascadia-homes-inc\/\">Continue reading <span class=\"screen-reader-text\">Washington Supreme Court Weighs in on Notice Requirements for Labor Liens:\u00a0Velazquez Framing LLC v. Cascadia Homes, Inc.<\/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":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[],"class_list":["post-902189","post","type-post","status-publish","format-standard","hentry","category-construction-2","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>Washington Supreme Court Weighs in on Notice Requirements for Labor Liens:\u00a0Velazquez Framing LLC v. 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