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Are our lien rights gone?

We supplied a 20-day prelim as a trash bin supplier on a private job. We entered the wrong person/company who ordered the trash bin on the prelim. We also didn't check to see if there was a lender on the job and there is. Lastly, our company is operating as a DBA and we didn't enter our name correctly (example "John Smith d.b.a ABC material supplier"). The owner sent an email stating the the 20-day is wrong and identified all of these issues and requested that we resend the 20-day with the correct info. We felt it was a trick because if we sent the update, we acknowledge the original was wrong and also, then our timing is such we lose our lien rights because the new 20-day would be late. Did we lose our rights to lien?

1 reply

Dec 9, 2021

A Preliminary Notice establishes the right to lien or present a stop payment notice for work, labor or services provided after the date of service of the Preliminary Notice, and the twenty days that precede the notice. Courts generally are understanding about minor errors in Preliminary Notices, but it sounds like you have multiple issues with your notice that may be in need of correction. Assuming you have received payment so far for your work, you could serve another Preliminary Notice, and that notice would then cover your future services on the Project. There may well be arguments that the Preliminary Notice that was originally served was insufficient, but in correcting the Preliminary Notice, you at least cover your company's services going forward. I suggest you retain the services of an attorney experienced with construction claims to take a look at your situation and provide you with more specific legal advice.

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