Tag Archives: mechanics lien North Carolina

As North Carolina’s Lien Agent Statute Turns 1, Three Tips for Soothing the Growing Pains

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North Carolina’s lien agent statute, which went into effect on April 1 last year, celebrated its first birthday yesterday.

Didn’t join the party?  I can’t say I’m surprised.

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Filed under Lien Law, State law, policy & news

Title Insurers Seek Further Erosion of Sub & Supplier Lien Rights in North Carolina

Monday MemoUPDATE 3/11/14 7:00 p.m.  I just received word that the N.C. Land Title Association believes it needs more time to explain to other construction industry stakeholders the concerns giving rise to its legislative proposals.  As a result, NCLTA has decided not to pursue its current proposals as part of the legislative study committee’s recommendations for legislation during the upcoming short session.  NCLTA will seek to discuss its concerns with interested stakeholders over the next few months in the hope of reaching a consensus on solutions that can be recommended as legislation during the 2015 long session.  In the interim, I am leaving this post up for informational purposes only.

With apologies to Yogi Berra, it’s déjà vu all over again.

Like in 2012, when the N.C. Land Title Association (“NCLTA”) successfully guided lien agent legislation through the North Carolina General Assembly’s short session, the organization is once again promoting a policy proposal widely opposed by the contracting community in advance of the Legislature’s May reconvening for its abbreviated 2014 get-together.

This time, the NCLTA has the Claim of Lien Upon Funds in its sights.

Here’s what you need to know:

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Filed under Lien Law, State law, policy & news, Subcontractors

Court of Appeals: Contractors’ Lien Claim Properly Dismissed Where “Owner” Owned Nothing on Date of 1st Furnishing

In a controversial 2-1 decision released October 2, 2012, the North Carolina Court of Appeals (“COA”) affirmed a trial court’s dismissal of a mechanic’s lien claim asserted by contractors who did not have a contract with the “Owner” of the improved real property as of the date of first furnishing — even though the “Owner” ultimately acquired title to the land during the course of the contractors’ performance.

Who is an "owner" under the mechanic's lien laws in North Carolina

Photo credit: tvland.com

The John Conner Construction, Inc. v. Grandfather Holding Co., Inc. decision is significant to the construction industry because it limits the reach of the term “Owner” as that term is used in North Carolina’s mechanic’s lien statutes.  Since there was one dissenting vote from the three-judge panel, however, the case is likely to be reviewed by the N.C. Supreme Court, which could elect to expand who qualifies as an “Owner” for the purposes of the lien law.

A full exploration of the facts, holding, dissent and practical implications of the John Conner Construction decision follows:

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Filed under Feature story, Lien Law, NC case law, State law, policy & news