Basics of Mechanics' Liens and Verified Claims

Basics of Mechanics' Liens and Verified Claims - Colorado Springs

May 2010

Original program held on April 21, 2010

Basics of Mechanics' Liens and Verified Claims

Program Highlights

- Who May Claim A Mechanics' Lien, When To File, And In What Amount

- Procedures and Time Limits

- How to Foreclose on a Properly Filed Lien

- Differences Between Liens in Public and Private Construction

- Lien Releases

- Verified Claim Statutes

- Trust Funds and Bankruptcy Issues

Program Description

In an uncertain economic and real estate climate, the use of mechanics' liens as a protective mechanism is more important than ever. Contractors and subcontractors must understand their rights in this area-and it is critical that they follow the established timelines and procedures to ensure that they can foreclose on a lien if necessary. This program provides step-by-step information about who can file a lien, what types of properties can be liened, and the required procedures for filing and foreclosing on a lien. Join attorney Gilbert R. Egle of Preeo Silverman Green & Egle PC - and co-author of Colorado Liens and Claims Handbook, published by CBA-CLE - to learn all you need to know about the mechanics' lien process in Colorado.

Topics To Be Covered:

I. MECHANICS' LIENS

- Mechanics' lien history and purpose
- Who can claim a lien

- Contractors, Subcontractors, and Suppliers

- What may be liened

- Commercial Property

- Residential Property

- Blanket Liens and Apportionment

- Preparation of lien statements

- Notice of Intent

- Content of the Lien Statement

- Sources of Information

- Common Lien Form Errors

- Amendments

- Time to file

- Important Deadlines, Extensions, and Their Impact

- Other tools of the trade

- Disburser's Notice

- Joint Check Agreements

- Bonds-Performance, Payment, and Lien Release

The benefit of a lien-getting paid

- How Liens Affect Title

- When and Why Liens Are Paid

- Lien Waivers

- Lien foreclosure process

- The Lawsuit to Foreclose

- Time to File

- Impact of Arbitration Clause

- Interest

- Attorney Fees

- Enforcement - Sale of the Property

- Mechanics' lien defenses

- Homeowner's Defense

- Posting Notice (Landlord/Tenant)

- Excessive Liens - Possible Penalties

II. STATE PUBLIC CONSTRUCTION - Verified Claim Statutes

- State public works claims - when the statute applies

- Important time frames

- The verified claim

- Foreclosure/enforcement lawsuits

- Bonds and bond claims on public works projects

III. TRUST FUNDS AND BANKRUPTCY ISSUES

- What are trust funds?

- Trust fund remedies

- Trust fund defenses

- Theft and treble damages

- Bankruptcy - discharge issues

Agenda

8:30 - 9:00 a.m.

Registration

9:00 - 10:15 a.m.

Programming

10:15 - 10:30 a.m.

Networking Break

10:30 -11:45 a.m.

Programming

11:45 - 1:00 p.m.

Lunch Break (on your own)

1:00 - 2:15 p.m.

Programming

2:15 p.m.

Adjourn

Faculty

Presented By:

Gilbert R. Egle, Esq.

Preeo Silverman Green & Egle PC

Denver, CO

About the Book

This is the fourth edition of Colorado Liens and Claims Handbook by the well-known author and lecturer on this subject, Jack Greenwald, updated by Gilbert Egle. The book was recently supplemented in January 2010. The handbook includes sample forms, a handy checklist, and excerpts from relevant statutes

Summary of Contents

Chapter 1 Introduction

Constitutionality of the Colorado Lien Law; Liberal Construction of Mechanics' Liens; Privity

Chapter 2 Liens on Private Construction Projects

Parties Who Can Claim a Lien; Financial Composition of Lien Statement; Mechanic's Lien as Encumbrance; Relationship with Contractor and Owner; Lien Problems on Job Site; Establishing Lien for Materialman; Notice of Intent to File Lien and Time Limits; Lien Statement and Time Limits; Blanket Liens and Apportionment; Extension of Time and Time Limits; Abandonment and Time Limits; Payments, Waiver, and Release; Leased Real Estate; Trust Fund Statute; Priority of Liens and Rank

Chapter 3 Special Rules for One- and Two-Family Homes

Special Rules and Restrictions; Time Limits; Conveyance to Bona Fide Purchaser; Special Notice; Special Rescission Rights

Chapter 4 Surety Bonds

Performance Bond; Labor and Materials Payment Bond; Notice of Filing; Rights of Involved Parties; When to File a Bond; Payment From Surety; Time Limits; Obtaining a Surety Bond

Chapter 5 Notices by the Claimant and Disburser

Notice Prior to Filing Mechanic's Lien Statement; Notice by Disburser; Claimants Notice

Chapter 6 The Lien Foreclosure Lawsuit

When, Where, and Whether to File a Foreclosure; Pleadings and Process; Pre-trial Matters; Trial, Execution, and Appeals

Chapter 7 Satisfying the Mechanics' Lien Foreclosure Judgment

Historical Perspective: Entry of Judgment and Sale of Property; Application of Proceeds; Enforcing Personal Judgment;

Redemption; Rights Pending Appeal

Chapter 8 Arbitration and Bankruptcy

Arbitration; Bankruptcy; Receivership

Chapter 9 Positions of the Various Parties

Owner; General Contractor; Subcontractor and Materialman; Attorney; Written Confirmations

Chapter 10 Public Construction Projects

State and Local Government; Claim Statement; Suing the Bonding Company; Pleadings and Trial; Lost Bonding Capacity; Trust Funds; Excessive Claim Statute

Chapter 11 Public Construction Projects: The United States of America

Federal Government Projects; Suing on Payment Bonds; Special Protection for Laborers and Materialmen

Subject Index

Tables of Authorities

Appendices

About the Book Authors

Gilbert R. Egle, Esq.

Gilbert Egle is admitted to practice in Colorado federal and state courts, including the U.S. Court of Appeals for the Tenth Circuit. Mr. Egle earned his law degree from the University of Wyoming and has practiced law in Denver since 1984, working primarily in the field of commercial litigation. His practice emphasizes construction-related work, with many cases involving mechanics' liens. He has authored construction-related articles, including recent updates to Colorado Liens and Claims Handbook, and has given seminars on various construction topics.

Mr. Egle is a member of the Denver and Colorado Bar Associations, and a section member of the CBA Litigation and Construction Law sections. He is actively involved in the American Subcontractors Association and has participated in ASA's government relations committee. Mr. Egle represents clients in a wide range of business planning, construction, and litigation matters.

Jack Greenwald, Esq. (Retired)

Mr. Greenwald received his Bachelor of Science of Law from the University of Denver in 1950 and a J.D. from the University of Denver College of Law in 1952. He practiced law in Denver continuously from 1952 to 2005, specializing in the area of mechanics' liens and public works projects claims in the state of Colorado. Mr. Greenwald acted as a consultant and has testified as an expert in the area of mechanics' liens. He has lectured at law seminars and has spoken to many construction trade groups on the subject of mechanics' liens and public works project matters. Mr. Greenwald is the author of the Colorado Liens and Claims Handbook (2nd, 3rd, and 4th editions), initially published by CBA-CLE in 1985.