July 2009
    

A Construction Law Client Advisory:

Kansas Court of Appeals Emphasizes Strict Adherence to Mechanic’s Lien Laws in Requiring Sub-Contractor/Lien Claimant to Correctly Identify the Name of the General Contractor

By: Kevin J. Breer

Recently, the Kansas Court of Appeals considered a subcontractor’s claim to enforce its mechanic’s lien. On the face of the lien statement, the subcontractor identified the general contractor as “Merit Construction Company, Inc.” The general contractor on the project, however, was “Merit General Contractors, Inc.,” a separate entity. Under K.S.A. 60-1103(a)(1), the subcontractor or supplier must correctly identify the name of the general contractor in order for the lien to be enforceable.

In this case, because the subcontractor failed to correctly identify the name of the general contractor, the Court of Appeals refused to enforce the subcontractor’s lien.

Lessons to be learned from this case are the following:

1. If you are an owner, developer or general contractor looking for ways to invalidate a lien, check to make sure the subcontractor or supplier has correctly identified the name of the general contractor. As you can tell from the example above, the name must be exact.
      
2. If you are a subcontractor or supplier filing a lien, you need to make sure you have performed your due diligence and checked all your contract documents to ensure you have correctly identified the name of the general contractor.

National Restoration Company v. Merit General Contractors, Inc., 2009 WL 1423570 (Kan.Ct.App. May 22, 2009).

If you have any questions or comments about this advisory, please contact Polsinelli Shughart PC Shareholder Kevin J. Breer at kbreer@polsinelli.com or 913-234-7404.

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