Hi Alex I read your very helpful guidance on Mechanics Lien on the Levelset website and would like your help if we go ahead but first I have a question on eligibility. We supplied lights to the value of $700,000 to a company in Las Vegas. The company has paid half the purchase price but is trying to delay payment of the remaining $350,000. The lights will be installed in the event space of one of the big hotels on the strip but at the moment they are in our client's warehouse. Here's the question: our client will lease the lights to the hotel on a long lease so the hotel will not own them. Can we claim that these lights constitute a permanent improvement to the hotel and register a lien on them? Best wishes Joe Ruston Director Remote Controlled Lighting Ltd London, UK
Good morning Joe! This is a very involved question. In some ways, this may be similar to the situation that solar panel distributors face when selling to a solar installation contractor for use on a particular project. There is much more information to learn, starting with whether your agreement with your customer provides for you to have a security agreement in the goods furnished. If there is a proper mechanics lien right to the materials once they are installed (and this would be need to be analyzed), did you serve a preliminary notice which may have been a condition precedent to recording a mechanics lien?