Contractors have long accepted the idea that they have little chance of enforcing a lien filed against a landlord for contracted tenant improvements. Landlords have had the upper hand for years on this issue. As long as they recorded a copy or an abbreviated version of the applicable lease, or as most landlords do, filed a statement that its leases prohibit any encumbrance or lien for improvements initiated by their tenants, landlords have been able to limit their liability for tenant improvement liens.
An aircraft maintenance company went about fixing a Boeing 767 brought in for service. After completing its work, the shop returned the jet to its owners along with a bill for the repairs. When, in a few months, the shop didn’t get paid, it placed a repairman’s lien on the plane - recording notice of the monies it was owed. Suit was eventually filed to foreclose the lien; an open and shut case thought the repair shop. But in what could become a game changer for all those whose business practice has been to release items before getting paid, the court denied the lien enforcement action.
If you’ve been sued, you likely received a subpoena for deposition during the litigation process. A deposition gives the lawyer and the client their best opportunity to examine witnesses and gain a better understanding of the claims and defenses in a matter.