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Can I amend my lien?

Michigan

We are a company with multiple entities. On mistake, several liens were filed under the wrong entity. Am I able to amend the current liens or do I need to file new liens? Some of the liens are now past their lien date. The liens are in various states, but mainly Michigan and Ohio.

3 replies

Nov 30, 2021
I can only respond regarding the Michigan liens. If your company operates with several related entities, then my recommendation is to file nothing more. Instead, if and when it becomes necessary to file a lien foreclosure action, you create and sign "assignments" of the lien claims. In other words, make sure that the entity filing each lien was acting as the agent for the "proper" party. If you get paid, then no harm is done. If you have to bring an action to get paid, you have both entities named as plaintiffs and you bring claims for breach of contract and for lien foreclosure. You bring all of the claims at once.
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Nov 30, 2021

I can only speak about Michigan's construction lien statute. 

The Michigan Construction Lien Act does not expressly address amended liens. 

In practice, I've filed amended liens to reflect partial payments (reducing the lien amount) or additional work (increasing the lien amount) . But I've never tried to change the name of the lien cliamant as you want to do. 

If you're still within your 90 days from last date of work, I think you can file a new claim of lien, reflecting the proper lien claimant, and discharge the incorrect lien. 

If you're past your 90 days, you could still record an amended lien, but expect pushback and resistence by the Owner. If the difference between the two lien claimants is slight or you can argue the Owner has actual knowledge of the differences, or cannot establish any prejudice from the change in lien claimants, you might survive a motion to dismiss the lien. 

Note: No matter why you're recording an amended lien, it is good practice to identify the document as "Amended Claim of Lien" and include the Liber and Page number and date of recording of the original claim of lien, plus an explantion of what's changed (ie., the lien claimant received a partial payment of $$, or peformed additional work that changes the lien amount).    

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Dec 2, 2021

Definitely hire a competent attorney who can help you.

 

 

 

 

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