How To Dispute A Louisiana Construction Lien
On June 29, 2009| Email This |  Comments |
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Louisiana lien laws are codified in La. R.S. 9:4801, which is referred to as the Louisiana Private Works Act. While the state has some notice requirements, it is generally a non-notice state [read about notice requirements for Louisiana here].
But what happens when a lien is filed improperly?
Depending on your perspective, it’s either fortunate or unfortunate that parish recording offices are required to file mechanic’s lien upon presentation.
So…if a subcontractor liens a project for $10 million when he’s only owed $35.00, the lien is recorded. If a laborer liens a project five years after its substantially complete, the lien is recorded. Or if the lien fails to include information required by law, it is still recorded.
While the construction or mechanic’s lien may be legally improper, it gets on the books, and that means it can have the effect of preventing a sale, transfer or refinancing of the property.
The Private Works Act provides a procedure by which any interested party can dispute the validity of a construction lien. If they are successful at removing the lien, the Act provides the disputing party the ability to recover attorneys fees and costs.
Scott Wolfe recently published a Legal Guide on the national lawyer ranking website, Avvo.com. The guide is titled “How to Dispute a Construction Lien in Louisiana,” and guides an interested party through these three steps:
1) Answer the Obvious Question: Is the Lien Improper? [read common mistakes]
2) Make Written Demand for Cancellation of the Lien [see template letter]
3) File Suit to Demand Removal of the Lien [see similar lawsuit]
Read the legal guide in full at Avvo.com by clicking here.
Wolfe Law Group frequently works with clients who dispute the validity of construction and mechanics liens in Louisiana and Washington. Contact us today for more information about how to demand the cancellation of a construction or mechanic’s lien filed against your property, or on your project.
