The Claim of Lien in Florida is a powerful tool that protects contractors, subcontractors, and suppliers who have provided labor, services, or materials for a construction project. However, property owners or other interested parties may contest the lien, leading to a legal dispute. Understanding the Florida lien laws, how to monitor for challenges, and the appropriate actions to take if a Claim of Lien in Florida is contested is crucial for contractors to protect their rights and financial interests.
Understanding the Claim of Lien
A Claim of Lien in Florida is a legal document recorded in the county where the property is located, stating that the vendor is owed payment for work performed or materials provided. Florida’s construction lien laws, governed by Chapter 713 of the Florida Statutes, set strict requirements for filing and enforcing a lien. A valid lien ensures vendors, like contractors, subcontractors, and suppliers have a legal right to seek payment, but property owners can dispute the claim, leading to legal proceedings.
How Can a Claim of Lien Be Contested?
A Claim of Lien in Florida may be contested in several ways:
- Notice of Contest of Lien – The property owner or their attorney can file a Notice of Contest of Lien in Florida with the county clerk. This document shortens the enforcement period of the lien from one year to 60 days, requiring the vendor to act quickly.
- Filing a Lawsuit – Under Florida Statutes §713.21(4), a property owner can file a lawsuit to challenge the lien. If this happens, the court issues a summons requiring the lienholder (contractor, subcontractor, or supplier) to justify the lien within 20 days. Failure to respond may result in the lien being dismissed. Common arguments include improper filing, lack of service, overstatement of amounts, or failure to meet statutory requirements.Filing a Bond to Release the Lien – The owner can post a bond equal to the lien amount plus interest and potential legal costs (approximately 25%), effectively transferring the dispute to the bond instead of the property. The contractor must then amend their lawsuit to include the surety as a defendant.
- Claiming the Lien is Fraudulent – If the property owner believes the Claim of Lien Florida was filed fraudulently or exaggerated, they may seek to have it removed under Florida Statutes §713.31, which allows for damages if a fraudulent lien is proven.
How to Monitor for a Contested Lien
Contractors should proactively monitor their Florida construction liens to respond promptly to any contestation. Steps include:
- Regularly Check Public Records:
- Search county clerk records in the property’s jurisdiction to check for a Notice of Contest of Lien Florida or any related filings.
- Many county clerk offices have online search tools for convenience.
- Stay in Communication with the Property Owner:
- Keeping an open dialogue may help resolve disputes before they escalate.
- Be alert for warning signs, such as legal threats or non-payment.
- Monitor Court Filings:
- Check whether a lawsuit has been filed challenging the lien.
- Working with a Florida construction attorney can help track legal filings.
- Respond to Any Legal Notices Promptly:
- Ignoring a Notice of Contest of Lien or a demand to file a lawsuit can result in losing lien rights.
What to Do If a Claim of Lien Is Contested
If a lien is contested, the contractor must take immediate and strategic action. Here’s what to do in different scenarios:
1. If a Notice of Contest of Lien is Filed
When a Notice of Contest of Lien in Florida is recorded, the enforcement period is reduced to 60 days from the original one-year period. Lienors must:
- Consult an Attorney Immediately – A Florida construction attorney can advise on the best legal approach.
- Decide Whether to Enforce the Lien – If the claim is valid, the contractor should prepare to file a lawsuit before the 60-day deadline.
2. If a Lawsuit is Filed Challenging the Lien
If the owner sues to remove the Florida construction lien, the contractor must defend the claim in court.
- Gather all supporting documentation – Contracts, invoices, correspondence, and project records.
- Work with legal counsel – An attorney will present evidence proving the validity of the lien.
- Consider alternative dispute resolution – Mediation or negotiation may resolve the dispute without costly litigation.
- Understand Attorney Fees – Under Florida lien laws, the prevailing party in a lien enforcement lawsuit may be entitled to attorney fees.
3. If a Bond is Filed to Release the Lien
When an owner posts a bond, the lien is transferred to the bond rather than the property itself.
- The contractor must amend their lawsuit to name the surety (bond company) as a defendant.
- The same legal enforcement procedures apply. Remember not to issue a release of lien.
Avoiding Common Pitfalls in Lien Contests
- Filing the Lien Incorrectly – Ensure accuracy in lien filing, including correct property descriptions, amounts owed, and statutory deadlines.
- Failing to Monitor Deadlines – Missing key deadlines can lead to Florida lien invalidation.
- Not Seeking Legal Help Early – Contesting a lien is a legal matter requiring expert guidance.
- Ignoring Communication – Keeping open channels with the property owner may prevent disputes from escalating.
- Avoiding Fraudulent Lien Allegations – Ensure that Florida construction lien amounts are accurate and not exaggerated to avoid penalties under Florida Statutes §713.31.