{"id":903168,"date":"2024-08-20T14:53:01","date_gmt":"2024-08-20T20:53:01","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=903168"},"modified":"2024-08-20T14:53:04","modified_gmt":"2024-08-20T20:53:04","slug":"blanket-lien-misapplication-under-mechanics-lien-act","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/blanket-lien-misapplication-under-mechanics-lien-act\/","title":{"rendered":"Mechanics\u2019 Liens: Misapplication of a \u201cBlanket Lien\u201d Under Colorado\u2019s General Mechanics\u2019 Lien Act"},"content":{"rendered":"\n<p>Laurie Choi, Amanda McKinlay and James Snow | <a href=\"https:\/\/www.swlaw.com\/publication\/under-construction-august-2024\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Snell &amp; Wilmer<\/a><\/p>\n\n\n\n<p>A mechanics\u2019 lien affords unpaid contractors, subcontractors, laborers, and\/or material suppliers a security interest in the property\u2019s real estate and title. A <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/mechanics-lien-are-they-the-be-all-end-all-of-construction-collections\/\">blanket lien<\/a> is a type of mechanics\u2019 lien that covers more than one unit, building, or property which contracted for labor, materials, or services. When properly filed, a blanket lien is valid in Colorado. Issues arise, however, when blanket liens are improperly applied to all units, buildings, or tracts of land in a single community or subdivision when less than all units, buildings, or tracts of land contracted for said labor, materials, or services. Under those circumstances, a blanket lien would likely be deemed invalid in Colorado as there is no statutory authority to place a lien upon property other than that property upon which the services were rendered or for which the fixtures were supplied.<\/p>\n\n\n\n<p>The right to a mechanics\u2019 lien is based in statute.&nbsp;<em>Independent Trust Corp. v. Stan Miller, Inc.<\/em>, 796 P.2d 483, 487 (Colo.1990). Colorado\u2019s General Mechanics\u2019 Lien Act provides, in relevant part, as follows:<\/p>\n\n\n\n<p>\u2026[a]ll persons of every class performing labor upon \u2026 any building, \u2026 or any other structure or improvement on land, including adjacent curb, gutter, and sidewalk \u2026 shall have a lien upon the property upon which they have \u2026 bestowed labor or for which they have furnished materials \u2026 machinery or other fixtures, whether at the instance of the owner, or of any other person acting by his authority or under him, as agent, contractor, or otherwise\u2026<\/p>\n\n\n\n<p>C.R.S. \u00a738-22-101(1).<\/p>\n\n\n\n<p>Where there are several buildings, structures, or other improvements for which labor and materials were provided under a single contract, Colorado permits the filing of separate lien claims in proportion to the value of the labor and materials furnished for the particular structure or improvement. C.R.S. \u00a738-22-103. Conversely, Colorado also permits, under certain circumstances, a single lien claim against all such buildings, structures, or other improvements (together with the ground upon which they are situated), if the cost or value of the labor or materials cannot be readily and definitely apportioned; and in that case, all of the improvements are deemed one improvement, and the land on which they are situated, one tract of land. C.R.S. \u00a738-22-103(4). The latter is often referred to as a \u201cblanket lien\u201d.&nbsp;<em>Compass Bank v. Brickman Grp., Ltd.<\/em>, 107 P.3d 955, 958 (Colo. 2005). This section, however, does not exempt such \u201cblanket liens\u201d from compliance with the statutory provisions upon which the right to the existence of a mechanic\u2019s lien depends.&nbsp;<em>Hill Dev. Corp. v. Cordova<\/em>, 714 P.2d 926, 927 (Colo. App. 1986).<\/p>\n\n\n\n<p>While the statute is to be liberally construed as to its remedial portion; it will be strictly construed in determining the question whether the right to a lien exists.&nbsp;<em>Schmidt Const. Co. v. Fast<\/em>, 776 P.2d 1175, 1176 (Colo. App. 1989). The plain language of the statute authorizes a lien in favor of the laborers or materialmen \u201cupon the property upon which they have \u2026 bestowed labor or for which they have furnished materials or \u2026 machinery or other fixtures\u2026.\u201d&nbsp;<em>Id<\/em>. Notably, it does not authorize a lien upon property other than that upon which the services were rendered or for which the fixtures were supplied.<em>&nbsp;Id.<\/em><\/p>\n\n\n\n<p>Accordingly, where there are multiple tracts of land in a single community or subdivision but only a portion of those tracts entered into contracts for the performance of labor or rendering of services, the filing of a mechanics\u2019 lien \u2014 including a blanket lien \u2014 against any tract that did not enter into such a contract for labor or services would likely be deemed invalid pursuant to the express language of the Mechanics\u2019 Lien Act and would run afoul of public policy.&nbsp;<em>Schmidt Const.<\/em>, 776 P.2d at 1176; C.R.S. \u00a738-22-101(1). Instead, the more appropriate action to preserve the lien claim would be to file individual mechanics\u2019 liens or, where apportionment is not readily available, a blanket lien filed against only those tracts which contracted for the performance of labor or rendering of services.<\/p>\n\n\n\n<p>Contractors and property owners in Colorado have recourse against improperly filed mechanics liens, including blanket liens, under the Mechanics\u2019 Lien Act and may want to consult with their construction attorney if they believe a mechanics\u2019 lien has been improperly filed against their 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>Laurie Choi, Amanda McKinlay and James Snow | Snell &amp; Wilmer A mechanics\u2019 lien affords unpaid contractors, subcontractors, laborers, and\/or material suppliers a security interest in the property\u2019s real estate and title. A blanket lien is a type of mechanics\u2019 lien that covers more than one unit, building, or property which contracted for labor, materials,&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/blanket-lien-misapplication-under-mechanics-lien-act\/\">Continue reading <span class=\"screen-reader-text\">Mechanics\u2019 Liens: Misapplication of a \u201cBlanket Lien\u201d Under Colorado\u2019s General Mechanics\u2019 Lien Act<\/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":[9895,12069,184],"class_list":["post-903168","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-law","tag-advise-consult","tag-blanket-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>Mechanics\u2019 Liens: Misapplication of a \u201cBlanket Lien\u201d Under Colorado\u2019s General Mechanics\u2019 Lien Act - Advise &amp; 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