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does the manufacturer have lien rights

Your map indicates that supplier to supplier liens are likely in North Carolina. Is that the case when it involves a WI. manufacturer to S.C. supplier to private owner in NC. The manufacturer would have lien rights to the real property in N.C. ??

3 replies

Sep 30, 2019

North Carolina has some of the more confusing mechanics lien laws in the country, and whether or not mechanics lien rights exist will often depend on the tier of the party who's gone unpaid. However, the physical location of the claimant's business will generally have little impact when mechanics lien rights are in play. Sub and supplier tier matters in North Carolina In North Carolina, a sub or supplier's tier will be crucially important in determining whether lien rights might apply. And, as you may know, each tier represents how far removed a supplier is from the prime contractor. So, first-tier subs are hired directly by the contractor, second-tier subs are hired by subs who were hired directly by the contractor, and so on. Importantly: subcontractors and suppliers within the first 3 tiers may be able to file a mechanics lien. So, if more than 3 tiers removed, even where the type of work provided might give rise to mechanics lien rights, the claimant won't be able to file a mechanics lien against the project property (though a lien on funds would still be available). But, if a supplier to a supplier is within the first 3 tiers, the right to lien may exist. Is the work, itself, lienable? Note, though, that the mechanics lien rights of subs and suppliers are available for those who "furnished labor, materials, or rental equipment at the site of the improvement". And, based on that language, unless the manufacturer of supplies supplied that material directly to the project site, they might not be entitled to lien rights. However, generally, if materials actually make their way into the project, those materials will often be lienable - even if they weren't delivered directly to the project themselves. Supplies intended for general inventory may not be lienable Finally, it's worth noting that supplying inventory to a supplier will generally not give rise to mechanics lien rights. That is, in order for lien rights to arise, typically, the materials supplied will need to be tied directly to the property where the work is liened. So, where materials supplied to another supplier are specifically designated for a particular project, lien rights may be available. For a little more background on North Carolina mechanics lien law: North Carolina Mechanics Lien Guide and FAQs.

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