Menu
Home>Levelset Community>Legal Help>Can I file a stop notice on invoices that are over 120 days past due in Washington?

Can I file a stop notice on invoices that are over 120 days past due in Washington?

WashingtonStop Notice
Anonymous General Contractor

Good Afternoon, I have a client that we are thinking about filing a stop notice on, we have about 45 properties under the same leasing agent. My question about the stop notice is, I have invoices that are over 120 days past due, can I still file a stop notice on those invoices? Also the homes are owned by a private entity but the land is government owned, does that make a difference?

1 reply

Matt Viator
Construction Lawyer
Levelset Admin at Levelset
| 1,003 reviews
Feb 10, 2020
First, it's worth noting that a Washington stop notice will only be effective if there's a lender on the project. This is because the stop notice is sent to the lender, and upon receipt of the notice, the lender must "stop" or freeze project funds as a result. So, in order for a stop notice to be effective, there must be a lender in place to even freeze those funds. But, it doesn't appear that there's a strong deadline for filing a stop notice. So, as long as the lender has enough project funds on hand, the stop notice will be effective to freeze that portion of project funds. But, if all the project funds have been paid out and there's nothing left to freeze, it might not be a great option. As for whether a Washington stop notice will be effective on a project that's on publicly owned land - the right to file a stop notice does among the requirements for filing a mechanics lien. So, naturally, that could be a cause for concern. But, considering a stop notice doesn't make a claim against the land, and considering that § 60.04.221 doesn't restrict stop notice rights to private projects, it's possible they could be available on a public works job. So, regardless of whether the job is ultimately considered public or private, there's a strong chance that a stop notice could be effective in putting pressure on a lender. Finally, keep in mind that other recovery tools could still be on the table, too. If the private entity developing the land was required to provide payment bonds (which seems likely if they're working on publicly owned land), then payment bond claims could lead to payment. Further, a "lien" claim against the project funds could be effective, too - and that'd act like a stop notice, freezing funds held by the public agency. The deadline for making those claims won't be based on invoice date, either - rather, they'll be based on the completion of the work. You can learn more about those recovery options here: Washington Bond Claim Guide and FAQs.
The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not
act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the helSee More...See More...
0 people found this helpful
Helpful
Other questions about Stop Notice in Washington
1 answer
1 answer
Related Topics