|
Subcontractor folded mid-project and, as often happens in this situation, Subcontractor's Supplier went unpaid. The Supplier had timely filed its Notice to Owner under the Florida Mechanics' Lien law. Developer and Contractor, related entities, filed a "Notice of Partial Recommencement" in an attempt to avoid the Supplier's lien. They argued that because they were related entities, they were both in privity with the failed Subcontractor, and thus the Developer didn't have to pay more than the Subcontract price.
The trial court agreed with the Developer and discharged the Supplier's lien.
The appellate court disagreed, finding that case law regarding "common identity" does not allow the Developer to use its relationship with the Contractor to avoid the Supplier's lien. The appellate court also held that because the "partial recommencement" procedure is not provided for in the Mechanics' Lien law, it could not defeat the Supplier's lien.
Moral: Smoke and mirrors can keep them guessing only for so long. Florida Wood Svc's Inc. v. Osprey Links Joint Venture, 720 So.2d 591 (Fla. 5DCA 1998). |
