We have counseled general contractors, subcontractors, suppliers and laborers about their rights to place liens on property that they have improved. Michigan has a very forward thinking statute called the Construction Lien Act which protects contractors and trades people from those that would take their goods and services without paying them.

Enforcing Construction Lien Claims can be tricky. The Construction Lien Act, like most other statutes, is fraught with pitfalls for the unwary. If a contractor is not careful about filing a construction lien claim, he may very well find himself defending a lawsuit for Slander to Title. We have advised numerous contractors and trades people regarding the requirements of filing a Construction Lien as well as how enforce them properly.

The State of Michigan also maintains a fund for subcontractors to pursue called the Builders Trust Fund. Subcontractors can file Builders Trust Fund claims when a contractor has been paid by a property owner for the work, but fails to remit the proceeds to the subcontractor.

Brian Rogoff is in charge of our Construction Litigation Practice area. Please call or email Brian if you have issues that you would like to discuss.

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