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When a general contractor or lower tier subcontractor or supplier records a mechanic’s lien attachment on property, security for the lienor’s hoped-for judgment is achieved – but often something more, and perhaps unintended, is achieved. Consolidated Electrical Distributors Inc. Eclipse Construction, Inc. ;
It’s not just foreclosed homes that are looking like a bargain to real estate investors in today’s market, but also distressed commercial assets. I.e., are there any subcontractors that have a lien on the project? Bringing a stalled construction project back to life is easier to do if you perform the right due diligence.
Finally, the general should insist -- even if the owner doesn’t -- on sworn lien waivers with each progress payment to the sub, verifying that the sub has paid for all labor and materials on the project with the last progress payment and will do so out of the present progress payment. If the sub falsely swears (it happens!),
These types of waivers are usually seen in contracts where there is a disparity in bargaining positions. ILLINOIS APPELLATE COURT DEEMS MECHANICS LIEN COUNTERCLAIM UNTIMELY. mechanics liens. The concurring opinion noted that only one other supreme court -- Georgia -- would not allow predispute waivers of a right to a jury.
How Morgan influences New Hampshire state courts’ take on this remains to be seen, but it is worth noting that early New Hampshire case law on the “presumption of arbitrability,” first introduced in the collective bargaining setting, distilled the presumption entirely from federal law. 103, 105-06 (1989).
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