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Can I file a mechanics lien against a tenant of a building?

Anonymous Subcontractor

I am a service subcontractor that did work for a general contractor on a Dick's Sporting Goods store that is a tenant of a larger building/mall. It is in Indiana, our direct customer is not getting paid or getting a response and they are said to be filing a lien. First can I lien it and if so how and who all is listed on the lien GC, end customer, building owner?

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 997 reviews

Apr 29, 2020

Indiana subcontractors who work on tenant improvements can file a mechanics lien against the property in some situations. For the lien to apply to the owner/landlord's interest in the property, the landlord must have actively authorized or directed their tenant to improve the property. Their mere knowledge that work is going on won't be enough, though. If the lease required that the tenant build out the space, if the landlord had any active role in the project, or if there are other factors present that show the landlord was involved in the project - then a lien against the landlord's property may well be available. If not, a lien against the tenant's leasehold interest may still be available. While that might not be as good as a lien against the owner's interest, it could put the tenant in breach of their lease agreement - and that could force them to make payment, too. These articles should provide some valuable insight: - Attention Indiana Commercial Landlords: Mechanic’s Liens Resulting from Tenant-Required Build-Outs Can Affect Your Entire Parcel of Property | Faegre, Drinker, Biddle, & Reath - What Happens to Mechanics Lien Rights If My Project is a Tenant Improvement? | Levelset

What information appears on an Indiana mechanics lien?

If a mechanics lien is being filed against the owner/landlord's interest, then including the tenant's information may not be necessary. Still, it could be useful to have on there. If the lien is being filed against the tenant's interest, then the tenant's information should certainly appear on the claim of lien - and the owner's name should likely be on there as well. Looking to Indiana's lien statute - it's not immediately clear whether the customer's information must be included on the lien claim. But, that's typically useful information that'd need to be shared when resolving the payment dispute anyway. So, it could be beneficial to go ahead and include that on the lien, itself. For more information on Indiana lien claims and what information must be present, these resources should be helpful: (1) Indiana Mechanics Lien Guide and FAQs; and (2) How to File a Mechanics Lien in Indiana – Step by Step Walkthrough. Finally, note that considering the complex nature of these questions - it'd be wise to consult with an Indiana construction attorney for ultimate clarity. They might be more familiar with how Indiana's lien requirements apply to unique situations like the one you posed above.

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