Many construction contracts now contain arbitration clauses.  Arbitration can be an effective dispute resolution process, but how the clauses operate in practice can raise challenges.  This is especially true when intertwined with mediation requirements and mechanic liens under state law.  The scenario below illustrates how the seeming conflicts could be resolved. Assume a contractor under an AIA A101-2007 general contract filed a mechanic lien. That contract form incorporates the AIA General Conditions document A201-2007 with…

Prior to 2020, the world of commercial real estate was dominated by highly unique leasing arrangements. This year has only added to the individualized nature of commercial leasing arrangements and the need for both landlords and tenants to pay close attention to the terms of their existing and future lease agreements. Brandi Kerber and Victoria Dutcher’s blog series Commercial Lease Negotiations in Uncertain Times looks at commercial lease negotiations and addresses a variety of questions…

For mechanic lien claimants having “priority” is a charmed state. Priority refers to the ordering of claims against a piece of real estate. Claims with first priority get paid first from the proceeds of a sale or foreclosure.  Being “junior” can mean no payday at all. Minnesota, like most states, has its own rules for determining priority.  The usual contest is between mechanic lien claims and a mortgage.  The rules in the Minnesota lien statutes…