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Experience:  I have 25 years experience in the practice of law.
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I own a Wisconsin S Corp. and consider filing a construction/mechanic&

Resolved Question:

I own a Wisconsin S Corp. and consider filing a construction/mechanic's lien on a Virginia construction site due to a partial no-pay of about $45K (out of a total of $382K) by a Pennsylvania general contractor. Our last product delivery date was December 2, 2011, and final on-site service/product modification date was February 6, 2012. How do we best go about this, and what are the potential pitfalls/challenges? Also, how easy is it to release the lien in case of subsequent payment? Thanks.
Submitted: 2 years ago.
Category: Business Law
Expert:  LawTalk replied 2 years ago.
Good afternoon,

Under WI you must follow a format in order to file the mechanics/supplier's lien.

You must provide the owner with a Notice of WI Lien Rights, then serve them with an intent to file the lien, then you file the lien and serve the owner. Thereafter, you have 2 years to either release the lien or file suit to enforce the lien.

The lien is released by the filing a lien release document.

If you have not done any of this before, you are well advised to have a local business attorney do it for you the first time---so you can see exactly what is involved. If you make a mistake, you may find yourself sued by the owner for Slander of Title---because in filing the lien, you are in effect placing a cloud on the title to the property and preventing the owner form selling it or even getting a loan based on the equity on the property.

Here is a link which may prove informative:

http://www.download-construction-forms.com/wisconsin-construction-lien-perfection.html



I wish you the best in 2012.

Because I help people here, like you, for a living---this is not a hobby for me, and I sincerely XXXXX XXXXX abiding by the honor system as regards XXXXX XXXXX I wish you and your family the best in your respective futures.

Would you be so kind as to Accept my Answer so that I may be compensated for assisting you? Bonuses for greatly informative and helpful answers are very much appreciated. Thanks Again,

Doug

Customer: replied 2 years ago.

Thanks Doug,

Since the delivery was made in Virginia and the lien has to be filed in Virginia, I do not understand why Wisconsin Lien Rights play a role. I would expect XXXXX XXXXXen Law to take precedent.

Expert:  LawTalk replied 2 years ago.
Sorry, I misread the facts. The fact that your company is a WI corporation was extraneous---but as it was indicated first in your question, it stuck in my mind as I answered the question.

Here is a link to lien laws of VA. The timing requirements are obviously different, and the fact remains that you really should not attempt this by yourself the first time around.:

http://www.fullertonlaw.com/construction-law-survival-manual/mechanics-liens-in-virginia.html

Doug


LawTalk, Attorney
Category: Business Law
Satisfied Customers: 27881
Experience: I have 25 years experience in the practice of law.
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