Mechanic’s Liens and Lien Bonds
M.G.L. c. 254 Section 12 states in part that “…lien bonds preclude the establishment of a mechanic’s lien by any person ‘entitled to the benefit of such bond and not named as a principal thereon for labor or for labor and materials performed under the contract in respect to which such bond is given.’”(Emphasis added). In an April, 2014 decision United States District Court Judge Hillman held that because the general contractor was a named principal on the bond, it could maintain a mechanic’s lien action against the owner. Its subcontractors could not because they received the benefit of the bond.
The essence of Judge Hillman’s decision is that if a general contractor purchases a bond to ensure that others will be paid if the general contractor does not pay them, the general contractor itself cannot make claim on the bond. As no lien bond existed to “bond off” the mechanic’s lien, the general contractor properly filed a mechanic’s lien.
We have extensive experience in preparing and enforcing mechanic’s liens throughout Massachusetts.
As an AV Rated Boston trained commercial debt collection lawyer, Alan M. Cohen is knowledgeable about preparing and enforcing mechanic’s liens. For business debt collection using mechanic’s liens and/or other prejudgment security available in Massachusetts, email email@example.com or call 508 620 6900.