Landlord’s lien prohibition no longer a sure thing

Alex BarthetGetting Paid, Liens

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.

Money talks on a Repairman’s Lien

Alex BarthetGetting Paid, 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.