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Can I add a penalty to the lean

New JerseyPrompt Payment

When I put the lean in is there an opportunity to add an “escalator “. By that I mean an interest penalty of some sort?

1 reply

Feb 13, 2020
Generally, mechanics liens are limited to the amount due and unpaid for the work performed on the property without extraneous amounts claimed, such as attorneys' fees, collection or lien filing costs, penalties, or interest. This is true in New Jersey, as well, as New Jersey specifically defines the amount allowed to claimed through a mechanics lien. According to § 2A: 44A-9(a), "[t]he amount of a lien claim shall not exceed the unpaid portion of the contract price of the claimant’s contract for the work, services, material or equipment provided." And, "[e]xcept as [otherwise] set forth . . . the lien fund shall not exceed: (1) in the case of a first tier lien claimant or second tier lien claimant, the earned amount of the contract between the owner and the contractor minus any payments made prior to service of a copy of the lien claim; or (2) in the case of a third tier lien claimant, the lesser of: (a) the amount in paragraph (1) above; or (b) the earned amount of the contract between the contractor and the subcontractor to the contractor, minus any payments made prior to service of a copy of the lien claim." That being said, however, attorney’s fees may be awarded by the court in a foreclosure action if the defendant offers a baseless defense, and interest amounts are generally added to a judgment when a claimant is successful.
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