Monthly Lien Law Update: Prominent Houston Hotelier Slapped with $20M Lien

Every month we gather the most pressing developments in lien law nationwide, so that you can stay informed and on top of any developments affecting your projects or company. Here are our highlights for the month of July:

Prominent Houston Hotelier Slapped with $20M Lien on New Tower: Houston construction company Tellepsen has filed $20 million in liens against a new hotel, The Post Oak. The construction firm claims that this is the first property lien they've filed in more than 10 years and claim that the owner has failed to pay them and their subcontractors numerous times over the course of the $400 million dollar project. The owner counters claiming that Tellepsen has not performed under the contract and other companies had to be brought in to complete the work. The two parties are headed to arbitration to try and work through the issues.

North Carolina sees sharp decline in disputes over unpaid construction work: The good economy may be the cause, but a journalist in North Carolina recently documented the decline in construction disputes and mechanics lien filings in the state. During the first half of the year, 123 mechanics liens were filed, down from 313 in the same period last year. While some of these liens are still substantial, the largest one being a little over $800 thousand, the decrease in liens is a good sign for all construction professionals.

Swinerton, Sacramento Kings court battle continues: In downtown Sacramento, California, the battle between the contractor Swinerton and SG Downtown, LLC continues over a high-rise hotel and condo tower. SG Downtown claims that, due to mismanagement by Swinerton, the project has run up additional costs of over $50 million and is seeking damages. Swinerton, meanwhile, has filed a $35 million mechanics lien on the property, as have numerous subcontractors.

The team at National Lien & Bond pays attention to both the national news, construction law specific stories, and the interesting cases that arise. This gives us insight on how to avoid construction and mechanics lien issues our clients may face in the future. We work to ensure our clients are complying with all local laws and regulations and their businesses are following the right processes for mechanics liens in every jurisdiction and are informed on changes to laws that may have an impact. Reach out to our team of experienced construction lawyers today to schedule a consultation.