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Bond to release mechanic lien

KentuckyBonding Off LienLawsuit

To whom it may concern, I filed a ML on July 9th against owner of BMW of Louisville and Contractor Kelly Construction. Two days later they filed a bond to release mechanic lien for double the amount by their bond surety company liberty mutual. I have not received a dime. How does this work. I am in the state of KY. Thanks

1 reply

Jul 22, 2019
Filing a lien, and then having the lien "bonded-off" can be confusing. Can they do that? Where did the lien go? In some respects, though, having the lien bonded off makes it easier to get paid.

In Kentucky, interested parties are allowed to effect the release of property from a lien claim by executing a bond before the county clerk in an amount double that claimed through the mechanics lien. This doesn't mean that there are no recovery options, though. The bond stands in and takes the place of the property itself, and "[t]he person asserting the lien may make the obligors in the bond parties to any action to enforce his claim, and any judgment recovered may be against all or any of the obligors on the bond." (§ 376.212.)

So, instead of collecting the amount due through the foreclosure of the property, the amount due may be collected from the bond (basically a pile of cash specifically there for the purpose of paying any successful claim). The claimant should name the surety and the parties obtaining the bond parties to an enforcement suit, and recover in that manner.
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