Month: May 2020

What is a Mechanic’s Lien?

A mechanic’s lien, which is referred to as a “mechanic’s and materialmen’s lien” in Oklahoma, is an involuntary security interest granted by law to construction participants to secure payment for labor or materials furnished to improve a property. Typically, mechanic’s liens are filed by a general contractor (one who has a contract directly with the property owner), a subcontractor (one who performs work under a contract with a general contractor), or a supplier that has not received payment for labor and materials provided to the property.

When the mechanic’s lien is filed on the subject property, the lien attaches to and encumbers the fee simple ownership of the property, creating a cloud on the title. A mechanic’s lien can be filed in Oklahoma against commercial, residential and public property. Additionally, a mechanic’s lien can also be filed against mining property, railroads, oil and gas wells, as well as other types of property.

Who has the Right to File a Mechanic’s Lien in Oklahoma?

A party who performs labor or supplies material shall have a lien on the real estate that received the labor or material. 42 Okla. Stat. § 141 states that:

“Any person who shall, under oral or written contract with the owner of any tract or piece of land, perform labor, furnish material or lease or rent equipment used on said land for the erection, alteration or repair of any building, improvement or structure thereon or perform labor in putting up any fixtures, machinery in, or attachment to, any such building, structure or improvements; or who shall plant any tree, vines, plants or hedge in or upon such land; or who shall build, alter, repair or furnish labor, material or lease or rent equipment used on said land for buildings, altering, or repairing any fence or footwalk in or upon said land, or any sidewalk in any street abutting such land, shall have a lien upon the whole of said tract or piece of land, the buildings, and appurtenances in an amount inclusive of all sums owed to the person at the time of the lien filing, including, without limitation, applicable profit, and overhead costs…”

This includes contractors, subcontractors, sub-subcontractors, and suppliers. Along with construction services, this includes services for planting trees or other plants, plumbing, roofing, electrical, architectural work, remodel work, and so forth. In order to have a valid mechanic’s lien, the labor and material must actually have been provided to the subject’s real property.

Pre-Lien Notice

In Oklahoma, a claimant that is other than an original contractor is required to send “pre-lien notice” when one (1) of the two (2) following circumstances applies:

• the property includes an owner-occupied dwelling; or
• the project is non-residential, and the claimant’s aggregate claim is greater than $10,000.

If the party has supplied labor and materials for a job regarding residential property, a pre-lien notice is not required. Residential property is defined as a single-family or multifamily project of four (4) or fewer dwelling units, none of which are occupied by an owner. Regardless of the claim amount or whether or not the claimant is a general or subcontractor, it is always optimal to send pre-lien notice in order to prevent unnecessary legal disputes, as well as possibly speed up the claim settlement process.

Pre-Lien Notice Requirements

This is very important. The pre-lien notice must be sent no later than seventy-five (75) days after the last date that the supply of material, services, labor, or equipment was provided by the claimant. The pre-lien notice shall be in writing and shall contain, but not be limited to, the following:

• a statement that the notice is a pre-lien notice;
• the complete name, address, and telephone number of the claimant or the claimant’s representative;
• the date of supply of material, services, labor, or equipment;
• a description of the material, services, labor, or equipment;
• the name and last-known address of the person who requested that the claimant provide the material, services, labor, or equipment;
• the address, legal description, or location of the property to which the material, services, labor, or equipment have been supplied;
• a statement of the dollar amount of the material, services, labor, or equipment furnished or to be furnished; and
• the signature of the claimant or the claimant’s representative.

The pre-lien notice needs to be either hand-delivered and supported by a delivery confirmation receipt or sent by certified mail with return receipt requested. Notice sent by certified mail, return receipt requested, is effective on the date mailed.

Further, the pre-lien notice should be sent to the general contractor, as well as the owner of the property. If the address of the owner is unknown, the claimant may request in writing from the original contractor the name and last-known address of the owner of the property. In the event that the general contractor fails to provide the claimant with the information requested within five (5) days, the pre-lien notice requirement to the owner of the property will be waived.

Filing the Mechanic’s Lien Statement

The claimant will file the mechanic’s lien at the County Clerk’s office of the county in which the property is located. The statement should contain:

• The name of the claimant;
• The names of the owner and/or the contractor;
• Description of the labor/materials provided;
• The amount claimed; and
• A legal description of the property subject to the lien.

The statement is required to be verified by affidavit, meaning that it must be signed and notarized.

What is the Deadline for Filing a Mechanic’s Lien in Oklahoma?

The deadline to file a mechanic’s lien for a general contractor is within four (4) months after the date upon which material or equipment was last furnished or performed under the contract. The fuse is even shorter for subcontractors, who must file the lien within ninety (90) days after the date upon which material or equipment was used on the land or when labor was last performed.

Enforcing the Mechanic’s Lien

Hopefully, after filing the mechanic’s lien, the debtor will have resolved the matter and paid the amount due. In the event that this has not occurred, the next step will be to file suit in order to foreclose on the mechanic’s lien. In Oklahoma, the deadline to enforce a mechanic’s lien is within one (1) year after the lien accrued.

Hiring an Attorney

If you have supplied labor or materials for any type of construction or improvements to real estate, you should be compensated. Common arrangements to retain representation include a contingency agreement in which the attorney is paid a percentage of the amount collected. Under this scenario, the lawyer does not collect a fee unless the client collects on the account.

If you need help filing or enforcing a Mechanic’s Lien in Oklahoma, call us today for a consultation to discuss your options or send us an email with your contact information.

This article is provided for informational purposes only and should not be relied upon as a substitute for the advice of a legal professional. Please contact a Tulsa, Oklahoma attorney with questions about preliminary lien notice or any other issues related to liens in Oklahoma.

What is a Judgment?

It has been said that the award of judgment collection is simply a piece of paper, a decoration only worth hanging on the wall. In order to collect on a judgment and thus receive payment, the Judgment Creditor must enforce the judgment. When a court resolves a civil lawsuit, the court renders a civil judgment. The civil judgment is the official decision by the court with regard to a dispute between the parties.

For example, if you and a friend enter into a contract by which you agree to wash your friend’s car and your friend agrees to pay you $20.00 for washing the said car, but your friend fails to pay you after cleaning the car, you might sue your friend for the $20.00 in a civil lawsuit. If the court sides with you, ruling that your friend owes you $20.00 based on the contract, it will issue a judgment in your favor. The civil judgment will order your friend to pay you $20.00. Now, you will need to collect it.

How to enforce a judgment?

A judgment is a legally enforceable obligation against the other party. A Judgment Creditor is the holder of the judgment, and the Judgment Debtor is the party under the obligation of the judgment. To collect on the judgment, the Judgment Creditor will need to enforce the judgment

Obtaining a judgment is the initial step in the collection process. There are several ways in which the Judgment Creditor may enforce the judgment. These procedures include:

• Post-Judgment discovery
• Garnishment
• Attachment

Post-Judgment Discovery

In order to successfully execute on the judgment, the Judgment Creditor must first know where to find the Judgment Debtor’s assets. Without knowing, it would be impossible to enforce the judgment. Consequently, post-judgment discovery may be crucial in the process of successfully garnishing accounts or seizing property.

At any time after the judgment is rendered, the Judgment Creditor can request from the court an order requiring the Judgment Debtor to appear at a hearing to answer questions, under oath, about his assets. This is called a Hearing on Assets, sometimes referred to as an “HOA.”

In order to conduct a Hearing on Assets, the Judgment Creditor must file an application or motion for the hearing, requesting that the Judgment Debtor disclose specific information regarding his assets. In the Application for the Hearing on Assets, the Judgment Creditor should request information and documentation regarding the Judgment Debtor’s bank account information, tax returns, titles to property, business documentation, certificates of stock, and so forth.

Garnishment

A garnishment is an order from the court that requires a third party who has in its possession money belonging to the Judgment Debtor to pay said money to the Judgment Creditor. Generally speaking, a garnishment is simply the process of a Judgment Creditor attaching to Judgment Debtor’s assets that are held by another party. While common examples include garnishment of money from the Judgment Debtor’s bank account or wages from the Judgment Debtor’s paycheck, a garnishment can be applied to an array of situations

Attachment

An attachment is a court order seizing specific property. An attachment is a way of attaching a judgment to the Judgment Debtor’s assets. Attachment is used to enforce a final judgment. In Oklahoma, there are many ways to execute an “Attachment,” which include recording the judgment with the county clerk of the county in which the Judgment Debtor’s real property is located.

Hiring an Attorney to Enforce the Judgment

The Judgment Creditor may choose to retain an attorney to assist in collecting on the judgment. A Judgment Creditor is entitled to post-judgment costs and attorney fees. Consequently, some of the additional costs may be added to the amount owed by the Judgment Debtor. Common arrangements include a contingency agreement in which the attorney is paid a percentage of the amount collected. Under this scenario, the lawyer does not collect a fee unless the client collects on the account.

If you need help enforcing a judgment in Oklahoma, call our business lawyer in Tulsa, Oklahoma, Aaron Bruner, Attorney at Law, for a consultation to discuss your options.