Home>Levelset Community>Legal Help>We provided receiving, warehousing, delivery and installation of furniture, fixtures and equipment for Lyric Corporate Offices. We moved them into 300 Montgomery St, 5th Floor San Francisco CA 94104. They owe us for services. Can we start a lien process on them even though they do not own the building?

We provided receiving, warehousing, delivery and installation of furniture, fixtures and equipment for Lyric Corporate Offices. We moved them into 300 Montgomery St, 5th Floor San Francisco CA 94104. They owe us for services. Can we start a lien process on them even though they do not own the building?

We provided receiving, warehousing, delivery and installation of furniture, fixtures and equipment for Lyric Corporate Offices. We moved them into 300 Montgomery St, 5th Floor San Francisco CA 94104. They owe us for services. Can we start a lien process on them even though they do not own the building? Thank you

1 reply

Jun 10, 2020

The Minnesota mechanics lien statute clearly allows for the ability to file a lien against the tenant's interest in the property at § 514.06. So, yes - you should be able to file a mechanics lien against the tenant's lease. Notably, though - that lien will only attach to the lease at hand, and it won't attach to the tenant's other assets. Liening the lease could still lead to payment though - it will put the tenant's ability to hold their lease in jeopardy. Note, though, that lien rights may also be available against the owner's interest in the property if the owner didn't disclaim responsibility for the improvement. And, where allowable, a lien against the fee ownership of the property will typically be a much stronger tool for recovery. Further discussion here: Discussion on Lien Rights for MN Tenant Improvements. With all of that being said, keep in mind that in order for lien rights to arise, there generally must be some permanent improvement to the project property. Things like cleaning, moving furniture, and providing regular maintenance generally won't give rise to lien rights. But, if there were installations done that permanently attach to the property or other repairs that were made, then lien rights may well be available. For further discussion on Minnesota lien rights: (1) Minnesota Mechanics Lien Rules, Requirements & FAQs; and (2) How to File a Mechanics Lien in Minnesota – Step by Step Guide Walkthrough.

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