Reminder: Louisiana Lien Period Starts When The Entire Project is Completed, Not Simply The Claimant’s Work
On November 22, 2010
By Scott Wolfe Jr
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Lien periods are a funny thing. In some states, they are painfully short, and in others tremendously long. Regardless of the actual period of time available for lien filing, in order to figure out when the lien period ends….it’s important to know when it begins!
In some state (like Washington), the lien period starts when the claimant last furnishes labor and material to the project. So, if the foundation subcontractor last works on January 1st, that’s when his lien period begins. It doesn’t matter if the project as a whole continues for the next ten years.
Circumstances are different in Louisiana, where the lien period starts when the entire project is completed (or abandoned). Using the above example, if a foundation contractor last performs work on January 1st, but the project continues for another ten years, the foundation contractor can file its lien at anytime after he finishes work, all the way through the ten years of construction until a designed amount of time after the entire project is complete.
Louisiana construction lawyers were reminded of this in 2004 when the Louisiana First Circuit decided Nu-Lite Electrical Wholesalers, LLC v. Alfred Palma, Inc., et al., 2003 CA 1167. In that case, this precise issue was presented.
The court – reviewing the definition of “abandonment” and “work” in the Private Works Act and related jurisprudence – held that the clock starts to tick after the entire work is abandoned or substantially completed.
About the Author: Scott Wolfe Jr
Scott Wolfe, Jr. obtained his J.D. degree from Loyola University of New Orleans, and his B.A. from Southern Methodist University in Dallas, TX. In 2006, 2007, 2008 and 2009, Scott was recognized as a Leader in Law by CityBusiness Magazine. The son and grandson of general contractors, Scott is a construction litigator in the Pacific Northwest, and the founding member of the bi-coastal law firm, Wolfe Law Group. Scott is also the founder and CEO of Express Lien, Inc., a legal document preparation service for contractors. In 2008, City Business Magazine recognized Scott as one of its Innovators of the Year for the Express Lien concept. As an entrepreneur himself, Scott has a strong background in business and commercial transactions and laws. He focuses his practice on the legal issues facing the construction industry, and has represented clients in multi-million dollar construction disputes in litigation and alternative dispute resolution proceedings. Scott is a LEED AP.
