Construction Blog

The answer is yes, if your state mechanic’s lien laws provide that the lien "relates back" to a time before the bankruptcy case was filed. However, if you are in a state where your mechanic’s lien does not relate back, the automatic stay prevents you from filing your mechanic’s lien and may void your mechanic’s lien if filed within 90 days of the bankruptcy filing. This important distinction among statutes has to do with when the lien arises. While all states have mechanic's lien laws, they differ in the manner in which a creditor creates, perfects and/or enforces the lien.

While the implied warranty of habitability has been a concern to homebuilders, since it was first recognized by the courts, subcontractors need to be concerned with the effect of the warranty, as well. In a recent case brought by the Sienna Court Condominium Association in Evanston, Illinois, the 1st District Appellate Court addressed the holdings that allow a property owner to bring a claim to correct a latent construction defect directly against one or more subcontractors.