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Estate - Construction wwwwwwArticles |
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PRIMARY
REMEDIES ON
PRIVATE AND PUBLIC WORKS OF IMPROVEMENT
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Gordon
Hunt
of
Hunt,
Ortmann, Blasco, Palffy & Rossell, Inc
with guest:
Rick Bayer
Executive VP & General Counsel of The Macerich Company
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Disclaimer
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I. INTRODUCTION
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The author often provides clients with brief summaries
of all the statutory remedies (Mechanic's Lien, Stop Notice and
bond claims). The purpose of this article is to provide a short,
basic outline of the primary remedies on private and public works
of improvement.
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II. PRIVATE WORKS
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A. Three Remedies
1. Mechanic's Lien
2. Stop Notice
3. Payment Bond
B. Steps To Perfect Mechanic's
Lien and Stop Notice
1. Preliminary Notice/20 Day Notice/CPN
a. Send within 20 days of first delivery
of labor, service, equipment or material to the jobsite
b. If no contract with the owner, send
to:
(1) Owner
(2) Contractor
(3) Lender
c. If you are not "the contractor" and
have a contractual relationship with the owner, then send
the Preliminary Notice to the lender
2. Record Lien and Serve Stop Notice
a. Record lien in county where real property
is located
b. Serve Stop Notice on owner or Bonded
Stop Notice on construction lender
c. Basic time limits
(1) No Notice of Completion (NOC):
All persons have 90 days from completion
(2) NOC: Prime has 60 days, all others
have 30 days
3. Lawsuit
a. Mechanic's Lien: Foreclose in 90 days
b. Stop Notice: No later than 90 days after
period for filing liens expire
4. Step to Perfect Claim on Payment Bond
a. Serve 20 Day Notice
b. If no 20 Day Notice given, serve notice
to surety and principal on bond within 30 days of NOC and
if no NOC, then serve surety and bond principal within 75
days of completion
c. Suit: File within 6 months of completion
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III. STATE PUBLIC WORKS
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A. Two Remedies
1. Stop Notice
2. Bond
B. Steps to Perfect Stop
Notice
1. Preliminary Notice/20 Day Notice/CPN
a. Only required of persons who do not
have a direct contractual relationship with the contractor
b. Send within 20 days of first delivery
c. Send to public body and contractor.
2. Serve Stop Notice
a. Within 30 days of NOC
b. If no NOC, within 90 days of completion
c. NOTE: 30 day continuous cessation of
labor deemed completion
C. Steps to Perfect Claim
on Bond
1. 20 Day Notice
a. Only required of persons who have no
direct contractual relationship with the contractor
b. Send to public agency and original contractor
2. If claimant neglected to give 20 Day Notice,
claimant may give notice to principal and surety on bond within
15 days of NOC and to surety and principal on bond within 75
days of completion if there is no NOC
3. Suit within 6 months of the expiration or
the period for filing Stop Notice
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IV. FEDERAL PUBLIC WORKS/THE
MILLER ACT
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A. One Remedy: Bond
B. Steps to Perfect Claim
on Bond
1. Preliminary Notice/90 Day Notice
a. Only required of persons who do not
have a direct contractual relationship with the contractor
b. Given to the contractor within 90 days
after the claimant furnished its last labor, service, equipment
or material
2. Suit: One Year From Date Claimant Furnished
its Last Labor, Services, Equipment or Material
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V. CONCLUSION
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The foregoing outline provides a brief overview
of the primary remedies and the procedures for perfecting those
remedies. All of the nuances that relate to said remedies are not
set forth, just the basics. This short summary should prove useful
to remind claimants of the basic steps and when they must be taken
to preserve "job rights".
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| DISCLAIMER:
This discussion is general in nature and is not intended to and does not create
a lawyer/client relationship. This discussion should in no way be relied upon
or construed as legal advice, particularly since most legal outcomes are highly
dependent on the facts of a particular case or situation. This discussion is provided
on the condition that it cannot be referred to or quoted in any legal proceeding;
if this condition is unacceptable to you, immediately delete this email and do
not keep a copy of it in any form. The reader or recipient is strongly urged to
consult with a lawyer for legal advice on these matters. Any reliance on the discussion
information by someone who has not entered into a written retainer agreement with
the lawyer providing the discussion information is at the reader's or recipient's
own risk. |
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YADDA, YADDA, YADDA
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