We filed a lien on a job in Kentucky and the property owner bonded off the lien. What steps should we take to collect?
Feb 25, 2019
I'm sorry to hear that you're having payment trouble, and that's a good question. First, I should mention that I'm not able to provide advice, but I am able to provide some relevant legal information that should help you navigate your situation. To receive legal advice, it'd be helpful to consult a local construction attorney about representation. Further, regarding information, zlien has a great article on this topic providing an overview of what happens once a mechanics lien is bonded off: Primer on Mechanics Lien Bonds and Bonding a Mechanics Lien. Looking to Kentucky specifically - when a mechanics lien has been bonded off, the lien claim doesn't really disappear - rather, the lien is extinguished as it relates to the property. The lien claimant is still entitled to enforce their claim, but instead of a lien enforcement action against the property, the enforcement action (i.e. lawsuit) would be taken against the bond. As the Kentucky lien statute does not appear to create any new timeframe or requirements after a lien has been bonded off, other than that an enforcement suit would be brought against the bond rather than the land, it would seem that the lien claimant would need to enforce their claim against the bond within the same timeframe as enforcing the lien against the property would have been necessary - which is within 12 months from the date when the statement of lien was filed. However, it's a good idea to consult a local construction attorney once a filed Kentucky mechanics lien has been bonded off. Because of the complexity involved, and because an enforcement action would require a lawsuit, it's wise to present all relevant documentation for review with a Kentucky attorney - they'll be able to advise on how to proceed, plus attorney representation would very likely be necessary in enforcing the claim, anyway.