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"Courts" Posts

Attorney Fees for Idaho Liens

Recently, in the case of Magleby v. Jenks Brothers Inc., the Idaho Supreme Court entered a decision concerning the allowance of attorney fees when a default judgment is taken on a mechanics lien claim.  In Magleby, the trial court only granted the contractors attorney fees for the amount stated in the complaint.  The judge concluded that the contractor was not entitled to an additional amount beyond what was specifically stated in the complaint.  However, the contractors attorney argued that while this decision would be appropriate where a default was entered after simply 20 days, in this particular case there was a great deal of settlement conversation and communication together with changes in parties before a final judgment was actually entered.  As a result of that the contractor’s attorney put in a substantial amount of work and charged the necessary fees in order to try and bring the case to a conclusion. 
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Montana Construction Lien Law: Notice of Right to Claim Lien

In Montana, suppliers and subcontractors are required to record a Notice of Right to Claim Lien for construction projects involving four-plexes, tri-plexes, duplexes, and single family dwellings.  Although a Notice of Right to Claim Lien is not required for other types of construction projects, it is advisable for Subcontractors and Suppliers to record a Notice of Right to Claim Lien on any privately owned construction project in Montana. 
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Filing Proofs of Claim in Bankruptcy

Filing Proofs of Claim in Bankruptcy
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Lien and Bond Amendments for the 2013 Legislative Session

On Wednesday, August 16, 2012, the Interim Business and Labor Committee asked for comments and information about the implementation of the State Construction Registry amendment which went into effect on August 1, 2011.  The following is a list of information which was given to the Legislature by the Utah construction Suppliers Association. 
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Mechanics Lien Rights During Bankruptcy

When Bankruptcies are filed construction Creditors are often faced with difficult decisions about money they are owed and how to protect their rights.  The use of mechanics liens even when a Bankruptcy exists, or immediately prior to a Bankruptcy can be substantial to Creditors.
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Liens for Design Work

In the case of Zion’s First National Bank v. Carlson, 464 Pacific 2nd 387, Utah 1970, the Utah Supreme Court recognized lien rights for an architect who had designed a building which was never constructed.  This case has raised many questions over the years about the extent to which land has to increase in value or work has to be performed on the land in order to have lien rights.
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Idaho Contractors Registration

For contractors and suppliers working in Idaho, a recent decision from the Idaho Supreme Court regarding Idaho’s contractor registration statute provides one of the first cases giving a perspective of how Idaho Courts are going to treat the requirement for contractor registration.
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Lienability of Maintenance Work

Lienablity of Maintenance Work
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Disaster Clean Up Case

Total Restoration v. Merritt
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What Can you Lien and What Can You Not Lien For?

What can you lien and what can you not lien for?
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Relying Upon A General Contractor’s Lien

Often, subcontractors assume that if a general contractor liens a project that the subcontractor is protected by the general contractor’s lien.  However, recent decisions from courts in Utah and in the Utah Federal District do not support this view.  In a recent case I was involved with, a general contractor had included the total amount the contractor owed to all of his subs and suppliers for a particular construction project.  Even though the lien encompassed these values, the court reduced the amount of the lien to reflect the amount of money actually owed to the general contractor exclusive of any money owed to subcontractors and suppliers, and also allowed the general contractors lien to include any amounts which the general contractor had paid out to subs but had not received from the owner and also the amounts which the general contractor owed to any subcontractors who had filed lawsuits against the general contractor.  To the extent that the subcontractors that had not filed lawsuits who had not filed their own liens and started their own foreclosure actions, then the view of the Court was that those amounts were not lienable.
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Idaho Supreme Court Gets Strict on Contractor Licensing

In 2006 Idaho adopted a law requiring contractors to register with the State of Idaho.  As a penalty for lack of registration, contractors will be prevented from being able to enforce lien rights.  Recently, in the case of Stone Brook Construction v. Chase Home Finance, an unpaid contractor who filed a lien on residential property asked the Idaho Supreme Court to overturn a decision prohibiting the lien because the contractor was not registered. 
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New Change in Legislation

There was a new change in 2012 State Legislation Session that involved Labor Service Companies.  
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