Menu
Home>Levelset Community>Legal Help>Liened Jobs on Public Land

Liened Jobs on Public Land

FloridaBond ClaimsMechanics Lien

We liened three jobs for which we had not been paid, not knowing that the projects were on State land. Can we amend these 3 liens to lien the Lease-hold interest of the public entity that owns the land? Or is there another document we should be using to secure the money we are due?

2 replies

Nov 14, 2019
Your best approach would be to engage a lawyer as soon as possible to (i) determine whether you have and properly preserved payment bond rights OR (ii) determine any lien on a leasehold interest based on any tenant improvements you were performing.
0 people found this helpful
Helpful
Nov 14, 2019
There are a few different considerations in play here regarding Florida construction payment recovery rights. Let's approach this topic by topic.

When work is performed for a tenant, a lien against their lease will typically be available

When work is performed for a Florida tenant, rather than the owner, the tenant will generally be entitled to file a mechanics lien against that tenant's interest. Ultimately, this means that the tenant's leasehold can be liened, and if foreclosed, taken over by the lien claimant. Certainly, this isn't quite as powerful an option as a lien against the fee title to the property. But, it's also certainly better than nothing. Plus, a mechanics lien against the leasehold interest of the lessee will often put them in jeopardy of losing that lease due to provisions contained in the lease agreement. Levelset discusses mechanics liens against leasehold interests here: What Happens to Mechanics Lien Rights If My Project is a Tenant Improvement?

Florida mechanics liens can be amended before the lien deadline

Florida is one of relatively few states which allow mechanics liens to be amended. Fla. Stat. § 713.08(4)(b) states that a mechanics lien may be amended during the time that a claimant can amend their filed mechanics lien at any time during which the lien could've originally been filed. However, for the amendment to be effective, that amendment cannot cause another party detriment as a result of their good faith reliance on the mechanics lien claim. So, if a mechanics lien were amended to update the owner to the leaseholder, that amendment would need to be done within 90 days of last furnishing labor or materials, plus the amendment cannot prejudice the leaseholder. But, in a situation where the owner has been liened and they've made their lessee aware of the filing, amending a lien claim might not be considered "prejudicing" the tenant since they'd have already been aware of the claim. Of course, it's impossible to predict how a court might turn on the issue, and everything would depend on the relevant circumstances.

Recovery via payment bond claim could be on the table if a payment bond is present

On projects where the land is owned by a public entity, that public entity will generally require their prime contractor to submit a payment bond to ensure that all subcontractors and suppliers are paid for their work. So, if a payment bond is present on the project, then pursuing a claim against that bond may be an option. Of course, Florida payment bond claims have deadlines, just like mechanics liens do. In Florida, the deadline to make a payment bond claim is 90 days after the last furnishing of labor or materials to the project. Also keep in mind that in order to file a Florida payment bond claim, those hired by someone other than the project's general contractor must first send a preliminary notice to the GC.

Bottom line

Florida mechanics liens can be amended, so long as the amendment is made before the mechanics lien deadline and so long as that amendment won't prejudice another party in the dispute. And, on Florida public projects, mechanics liens generally will not be available - but recovery might be made via bond claim, as long as a timely claim is filed. Further, keep in mind that there are always other recovery options that might be available to aid in recovery. Sending simple requests or warnings - like an invoice reminder or even a demand letter - will often do the trick. Or, when payment isn't made, actions under breach of contract or Florida's prompt payment laws may be on the table, too. As David mentioned above, the best way to get ultimate clarity on what recovery tools might make the most sense in your situation will be to consult a Florida construction attorney. They'll be able to take a deeper look into your circumstances and determine how best to proceed.
0 people found this helpful
Helpful