What is the law for suppliers that provided equipment to a customer in another state. I am a business in Washington State.
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Jun 17, 2020
The answer will usually depend on the state mechanics lien laws where the project is located. Generally speaking, equipment lessors are almost always protected by state mechanics lien statutes. However, the notice requirements and deadlines will vary.
For more information on a particular state, you can check out our state-by-state mechanics lien resource pages, or download our Lien & Notice Deadline Chart for Equipment Lessors in All 50 States. Also, feel free to follow up with us here in the Levelset Expert Center.
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Jun 18, 2020
IF you still need assistance in “getting paid” (i.e., the bottom line in Lien Laws and business), you’ll likely need to contact legal counsel in the state where you supplied the equipment (i.e., the “site” of the improvements on which your equipment was used), as it is THAT state’s Lien laws that will govern your rights as an equipment supplier.
See the comparable provisions under WA State Lien Laws (primarily RCW Chapter 60.04) – some of which are as follows:
RCW 60.04.010 Definitions.
Unless the context requires otherwise, the definitions in this section apply throughout this chapter.
(4) "Furnishing labor, professional services, materials, or equipment" means the performance of any labor or professional services, the contribution owed to any employee benefit plan on account of any labor, the provision of any supplies or materials, and the renting, leasing, or otherwise supplying of equipment for the improvement of real property.
(11) "Potential lien claimant" means any person or entity entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by the provisions of the laws of the state of Washington.
(15) "Site" means the real property which is or is to be improved.
RCW 60.04.021 Lien authorized.
Except as provided in RCW 60.04.031 (NOTE: As an “equipment supplier” you MUST give Notice to the Property Owner and the GC, at least in WA State, in order to be able to assert “lien rights” against the “site”),any person furnishing labor, professional services, materials, or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor, professional services, materials, or equipment furnished at the instance of the owner, or the agent or construction agent of the owner.
RCW 60.04.051 Property subject to lien.
The lot, tract, or parcel of land which is improved is subject to a lien to the extent of the interest of the owner at whose instance, directly or through a common law or construction agent the labor, professional services, equipment, or materials were furnished, as the court deems appropriate for satisfaction of the lien. If, for any reason, the title or interest in the land upon which the improvement is situated cannot be subjected to the lien, the court in order to satisfy the lien may order the sale and removal of the improvement from the land which is subject to the lien.
There are likely “comparable” provisions under the Lien Laws of the State where the “site” of the construction project that you’ll need to comply with.
Good luck and feel free to email or call me IF you have further questions.
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Jun 18, 2020
Each state has their own lien laws. Since your lien would be recorded in the other state, it would be subject to that states lien laws.
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Jun 18, 2020
Your lien rights will vary based on the answers to some questions: Query; (1) Did your company do business with another person or company based here in Washington State, and merely provide the equipment to a job site/project located in another state?, OR (2) ) Did your company do business with another person or company based in the “other” state, and provide the equipment to a job site/project located in that other state?. (3) Do you have a contract with the client that states “the law” for any of these issues/lien rights?
Typically your rights to lien real property will be limited to that real property your equipment was used on for improvement. The law of the state where the property is located will likely apply. If you contracted with a Washington company you may also seek judgment against that company and its assets here in Washington under Washington law.
Please feel free to contact me directly.
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Mar 3, 2022
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