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Showing posts from April, 2015

Property Ownership and Your Lien Rights

The ownership interest of the party you contract with may dictate the reach of your lien rights. For example, if the owner of a property is the sole owner of the entire parcel, then a lien will extend to the entire interest of the owner. Conversely, if the party who contracts for an improvement to real property has no ownership interest at all in the subject property, a construction lien cannot reach the property. Take for example the facts of Paterson, Inc., v. Bonda. In that case, Paterson, a contractor has a contract with Mr. and Mrs. Bonda to improve the Bonda's condominium apartment. Before the work was completed the Bondas terminated Paterson. Paterson filed a mechanics lien against the Bondas and a lawsuit was filed.

     Mr. Bonda filed for summary judgment based on his not having an ownership interest in the property. The trial court entered summary judgment for Mr. Bonda and awarded him attorney's fees for defending the lien foreclosure claim. Donald M. Paterson, Inc…

TOP TEN CONSTRUCTION CLAUSES PART 2-CLAIMS FOR CONSEQUENTIAL DAMAGES

This article is the second of a ten-part series analyzing ten critical construction clauses.In this installment, we analyze the “mutual waiver of consequential damages.” The first article, which addressed indemnification clauses, can be found at http://sotolawgroup.blogspot.com/2015/02/top-ten-construction-clauses-part-i.html

     Before analyzing the significance of this provision, however, you must understand the difference between “direct” or “general” damages, and “indirect” or “consequential” damages.Direct or general damages are those damages that the law presumes follow from the type of wrong complained of.Examples include an owner’s cost to correct or complete a contractor’s work after a breach.Indirect or consequential damages are losses that do not flow directly and immediately from an injurious act, but that resulted indirectly from the act.Examples include lost profits suffered by the owner caused by the delayed completion of a store or lost rents from the owner of an…