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A Mechanics Lien Can Potentially Be Filed Without an Erected Structure

By Eric S. Goldberg on July 1, 2013
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In the case of B.N. Excavating v. PBC Hollow-A, the Pennsylvania Superior Court held that it is not always  necessary to show that a structure has been erected in order for a mechanics lien to be filed in Pennsylvania.   Rather, the majority of the Court ruled that where land excavation is an integral part of the overall construction plan for a building, a mechanics lien could possibly be filed for that work, even where no structure has been built.   The en banc panel noted that the seminal case of Sampson-Miller Associated Companies v. Landmark Realty Co. does not stand for the proposition that a mechanics lien can never be filed if a structure has not been erected.  

The dissenting judges in B.N. Excavating noted that there was never any allegation that a structure was ever erected.  Therefore, in their opinion, a mechanics lien cannot be filed as no structure exists.   The majority of the en banc panel stated that the B.N Excavating ruling does not stand for the proposition that a mechanics lien can be filed against land which has no correlation to the construction of a permanent structure.  However, where land excavation is an integral component of the overall development of a structure, a mechanics lien can attach to the land, even without the construction of a permanent structure.

The B.N. Excavating case is a tremendous victory for land excavators and potentially other subcontractors.   In a difficult economic environment, there is a great potential for subcontractors to perform work on projects in which a permanent structure is never ultimately erected.  

Photo of Eric S. Goldberg Eric S. Goldberg

Eric S. Goldberg is a Shareholder at Stark & Stark and member of its Real Estate and Business & Transactional Groups. Mr. Goldberg practices in both the Lawrenceville/Princeton and Yardley offices. He focuses on various types of transactional law, with an emphasis in…

Eric S. Goldberg is a Shareholder at Stark & Stark and member of its Real Estate and Business & Transactional Groups. Mr. Goldberg practices in both the Lawrenceville/Princeton and Yardley offices. He focuses on various types of transactional law, with an emphasis in the areas of real estate, land use, and business law.

Read more about Eric S. GoldbergEmail
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  • Posted in:
    Corporate & Commercial, Employment & Labor, Personal Injury
  • Blog:
    Pennsylvania Law Monitor
  • Organization:
    Stark & Stark
  • Article: View Original Source

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