In an opinion issued this March, the Nebraska Supreme Court strengthened contractors’ rights to file liens to protect their interests in property upon which they performed work. The case was Nore Electric v. S&H Holdings, 316 Neb. 197 (2024). In that case, the Court held that an owner could not transfer its ownership interest free of contractors’ lien interests during a period following a notice of termination. Under Nebraska law, [...]
So, you have a lien on file and you still have not gotten paid. How long do you have to enforce your lien? As with most matters in the law, it depends. The Nebraska Construction Lien Act provides that your lien will be effective for two years after recording of the lien. If you do not institute judicial proceedings within those two years, your lien will become void. This does [...]
We know attorneys have an ethical obligation to their own clients for the safekeeping of property under Nebraska's Rules of Profession Conduct. Neb.Rev.Stat. § 3-501.15. This often arises in the area of personal injury litigation. In fact, improper handling or usage of client monies often results in disbarment in the state of Nebraska. It also appears Nebraska attorneys have an ethical obligation to protect the property of third parties whose interest may be contradictory to [...]
Have you ever thought about waiving your right to file a lien on a project? Have you perhaps waived your lien rights by signing a contract without closely examining it? I recently came across a contract that contained the following clause: The subcontractor shall not file a mechanic’s or materialman’s lien or maintain any claim against the owner’s real estate or improvements for or on account of any work done, [...]
How often do you review the payment terms of a contract with an eye toward whether you are waiving lien rights under that contract? This is something you should consider if your contract contains a pay-if-paid clause. I am often times asked about the difference between a pay-when-paid and pay-if-paid clause. The real difference is that a pay-when-paid clause simply allows a contractor a reasonable amount of time by which [...]
Amending your construction lien is not as easy as you might think. You cannot simply revise the dollar amount of your claim or the location of the property, if you didn't have it right the first time. Nebraska statutes require more information in the amended lien. And, if you don’t include it, you run the risk of your lien being declared invalid. Nebraska § 52-148 authorizes the amendment of construction liens, but [...]
Did you know that your lien may be voided if it is filed in bad faith or you refuse to execute a release of lien? It’s true. And, if a court finds that you did act in bad faith, it may award attorney fees to the owner. That would be a bad turn of events. As some of you may know, section 52.157 of the Nebraska Construction Lien Act addresses [...]
A contractor sometimes believes that once the lien is filed, they are home free for getting paid. Unfortunately, that is often not the case. There are always concerns about whether the owner has sufficient funds to pay the contractor and subcontractors. Obviously, that is why the lien was filed. There are also concerns about whether there is any equity in the property to satisfy the liens. But, even if you [...]
Our clients often ask how they can best protect their rights on a public construction project because they know they can’t file a lien. Contractors on public projects must be very careful about protecting their claim because there are very specific steps that must be followed. Nebraska statute section 52-118 contemplates two types of situations--those in which the subcontractor or supplier has a contract with the contractor and those [...]
Welcome to Lamson, Dugan and Murray’s Construction Law blog. Here, we’ll be posting articles on a wide variety of construction related topics, including contracts, liens, dispute resolution, employee problems, insurance coverage, and updates on Nebraska and Iowa law and statutes. We hope that you find our articles beneficial to your business, and if you have a topic you’d like us to write on, drop us a line and we can [...]
