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In today's economy, NSF checks are becoming a fact of life for those in the construction industry.   When it comes to your company's collections problems, however, receipt of NSF checks may not be all that bad.

That's because nearly every state imposes stiff penalties against those who pass hot checks.   What type of penalties you ask?   If you're forced to collect on an NSF check, you'll likely be entitled to attorneys fees, legal costs and interest, and that's in addition to statutory liquidated damages that can be as stiff as double the amount of the check.

In all the states where I practice (Oregon, Washington & Louisiana), there exists powerful statutes designed to deter bad checks.  If you receive a NSF check, it's important you follow the procedures of these statutes to ensure you will qualify for the penalties.

Over the past few days, I've been contacted by folks about NSF check collections a bit more than usual, and so I spent some time over the weekend drafting short and understandable step-by-step guides on how to collect on a NSF check in these three states.   

We published them as Legal Guides over at Avvo.com.   Take a look at them here:

How to Collect on NSF Check in Louisiana

How to Collect on NSF Check in Washington 

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In today's economic climate, even contractors who typically work on private projects are testing the waters with federal and state construction works.  And unfortunately, these newcomers are finding themselves a bit lost in procedures when it comes time to get paid.

In the event a federal project (or GC on a federal project) goes sour, contractors and materials suppliers must turn to the Miller Act as a remedy.

We've written about the Miller Act in previous posts right here on the Construction Law Monitor.   But we're not the only act in town, take a look at the Miller Act conversations on the Construction Lien Blog, as well as the Federal Construction Contracting Blog.

In addition to these resources, I've just published a Legal Guide on Avvo.com titled "How to File A Mechanics Lien."  

It breaks down the process in four steps, easy on the eyes:

1. Determine if you have the right to file a claim
2. Send Miller Act Notice to the prime contractor within 90 days from last furnishing labor/materials
3. Sent Notice to the surety (optional)
4. File Suit Against the Bond within 1 year from last furnishing labor/materials

Take a look at it over on Avvo.com by clicking here.

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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.

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Around the Web this week, there seemed to be a lot of news related to dirty politics in Washington and Louisiana, as well as some interesting blog posts and news articles related to the successes and failures in arbitration.

• Dirty Politics in LA:   After months of investigation related to the New Orleans Affordable Homeownership program (NOAH), the city has sued six contractors seeking repayment of $217,877.
   
• Dirty Politics in WA:  A big "one-sided" labor bill in the Washington legislature was killed this week when emails were discovered linking the success of the bill to campaign donations.   It's believed that labor organizations are behind the bribe.  Read about the matter in the Seattle Times.
  
  
• Arbitrate or Litigate?   The Real Estate and Construction Law Monitor posted an interesting article about the pros and cons of arbitration / litigation this week.  At the same time, the Wall Street Journal blog posted about a recent study that found success for consumers in arbitrations.  All this referred to by our very own Doug Reiser here.
   
• The Illinois Construction Law Blog tries to answer a tired question in construction litigation:  Is Time Really of the Essence?
  
  
• Avvo, a lawyer rating website based in Seattle, WA, launched in Louisiana this week.   Scott Wolfe's profile was already in the database from practicing in Washington, but we're all happy that Avvo's now launched in the Sportsman's Paradise.
   
• Wolfe Law Group's resident french bulldog, Oscar, is featured in a video at Wolfe Law Group's new YouTube Page:   Oscar:  Document Security Officer.
  
  
• New Orleans City Business Magazine has inducted Scott Wolfe Jr., founding member of Wolfe Law Group, into the Leadership in Law Hall of Fame.   Scott is one of 7 total inductees, and was a Leadership in Law honoree in 2006, 2007 and 2008.

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