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Senate File 429

Partial Bill History

Bill Text

PAG LIN
  1  1                                    SENATE FILE 429     
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO NOTIFICATION OF FORFEITED AND CANCELLED MECHANIC'S
  1  5    LIENS, CHALLENGING A MECHANIC'S LIEN, AND PROVIDING A REMEDY.  
  1  6 
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8 
  1  9    Section 1.  Section 572.23, Code 1999, is amended to read
  1 10 as follows:
  1 11    572.23  ACKNOWLEDGMENT OF SATISFACTION OF CLAIM.
  1 12    1.  When a mechanic's lien is satisfied by payment of the
  1 13 claim, the claimant shall acknowledge satisfaction thereof
  1 14 upon the mechanic's lien book, or otherwise in writing, and,
  1 15 if the claimant neglects to do so for thirty days after demand
  1 16 in writing is personally served upon the claimant, the
  1 17 claimant shall forfeit and pay twenty-five dollars to the
  1 18 owner or contractor, and be liable to any person injured to
  1 19 the extent of the injury.
  1 20    2.  If acknowledgment of satisfaction is not filed within
  1 21 thirty days after service of the demand in writing, the party
  1 22 serving the demand or causing the demand to be served may file
  1 23 for record with the clerk of the district court a copy of the
  1 24 demand with proofs of service attached and endorsed and, in
  1 25 case of service by publication, a personal affidavit that
  1 26 personal service could not be made within this state.  Upon
  1 27 completion of the requirements of this subsection, the record
  1 28 shall be constructive notice to all parties of the due
  1 29 forfeiture and cancellation of the lien.  Upon the filing of
  1 30 the forfeiture of the lien, the clerk of the district court
  1 31 shall mail a file-stamped copy of the cancellation to both
  1 32 parties.
  1 33    Sec. 2.  Section 572.24, Code 1999, is amended to read as
  1 34 follows:
  1 35    572.24  TIME OF BRINGING ACTION – COURT.
  2  1    1.  An action to enforce a mechanic's lien, or an action
  2  2 brought upon any bond given in lieu thereof, may be commenced
  2  3 in the district court after said lien is perfected.
  2  4    2.  An action to challenge a mechanic's lien may be
  2  5 commenced in the district court or small claims court if the
  2  6 amount of the lien is within jurisdictional limits.  Any
  2  7 permissible claim or counterclaim meeting subject matter and
  2  8 jurisdictional requirements may be joined with the action.
  2  9 The court shall make written findings regarding the lawful
  2 10 amount and the validity of the mechanic's lien.  In addition
  2 11 to any other appropriate order, the court may enter judgment
  2 12 on a permissibly joined claim or counterclaim.  If the court
  2 13 determines that the mechanic's lien is invalid, valid for a
  2 14 lesser amount, frivolous, fraudulent, forfeited, expired, or
  2 15 for any other reason unenforceable, the clerk of the district
  2 16 court shall make an entry of record to the mechanic's lien
  2 17 book regarding the proper amount of the lien or, if warranted,
  2 18 canceling the lien.
  2 19    Sec. 3.  Section 572.28, Code 1999, is amended to read as
  2 20 follows:
  2 21    572.28  DEMAND FOR BRINGING SUIT.
  2 22    1.  Upon the written demand of the owner, the owner's
  2 23 agent, or contractor, served on the lienholder requiring the
  2 24 lienholder to commence action to enforce the lien, such action
  2 25 shall be commenced within thirty days thereafter, or the lien
  2 26 and all benefits derived therefrom shall be forfeited.
  2 27    2.  If an action is not filed within thirty days after
  2 28 demand to commence action is served, the party serving the
  2 29 demand or causing the demand to be served may file for record
  2 30 with the clerk of the district court a copy of the demand with
  2 31 proofs of service attached and endorsed and, in case of
  2 32 service by publication, a personal affidavit that personal
  2 33 service could not be made within this state.  Upon completion
  2 34 of the requirements of this subsection, the record shall be
  2 35 constructive notice to all parties of the due forfeiture and
  3  1 cancellation of the lien.  Upon the filing of the demand with
  3  2 the required attachments, the clerk of the district court
  3  3 shall mail a file-stamped copy of the demand to both parties.
  3  4    Sec. 4.  Section 572.32, Code 1999, is amended to read as
  3  5 follows:
  3  6    572.32  ATTORNEY FEES – REMEDIES.
  3  7    1.  In a court action to enforce a mechanic's lien, if the
  3  8 plaintiff furnished labor or materials directly to the
  3  9 defendant, the a prevailing plaintiff, if successful, shall
  3 10 may be awarded reasonable attorney fees.
  3 11    2.  In a court action to challenge a mechanic's lien filed
  3 12 on an owner-occupied dwelling, if the person challenging the
  3 13 lien prevails, the court may award reasonable attorney fees
  3 14 and actual damages.  If the court determines that the
  3 15 mechanic's lien was filed in bad faith or the supporting
  3 16 affidavit was materially false, the court shall award the
  3 17 owner reasonable attorney fees plus an amount not less than
  3 18 five hundred dollars or the amount of the lien, whichever is
  3 19 less.
  3 20    Sec. 5.  Section 631.1, Code 1999, is amended by adding the
  3 21 following the new subsection:
  3 22    NEW SUBSECTION.  6.  The district court sitting in small
  3 23 claims has concurrent jurisdiction of an action to challenge a
  3 24 mechanic's lien pursuant to sections 572.24 and 572.32.  
  3 25 
  3 26 
  3 27                                                             
  3 28                               MARY E. KRAMER
  3 29                               President of the Senate
  3 30 
  3 31 
  3 32                                                             
  3 33                               RON J. CORBETT
  3 34                               Speaker of the House
  3 35 
  4  1    I hereby certify that this bill originated in the Senate and
  4  2 is known as Senate File 429, Seventy-eighth General Assembly.
  4  3 
  4  4 
  4  5                                                             
  4  6                               MICHAEL E. MARSHALL
  4  7                               Secretary of the Senate
  4  8 Approved                , 1999
  4  9 
  4 10 
  4 11                               
  4 12 THOMAS J. VILSACK
  4 13 Governor
     

Text: SF00428                           Text: SF00430
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