Text: SSB01021 Text: SSB01023 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 572.23, Code 1999, is amended to read 1 2 as follows: 1 3 572.23 ACKNOWLEDGMENT OF SATISFACTION OF CLAIM. 1 4 1. When a mechanic's lien is satisfied by payment of the 1 5 claim, the claimant shall acknowledge satisfaction thereof 1 6 upon the mechanic's lien book, or otherwise in writing, and, 1 7 if the claimant neglects to do so for thirty days after demand 1 8 in writing, the claimant shall forfeit and pay twenty-five 1 9 dollars to the owner or contractor, and be liable to any 1 10 person injured to the extent of the injury. 1 11 2. If acknowledgment of satisfaction is not filed within 1 12 thirty days after demand in writing, the party serving the 1 13 demand or causing the demand to be served may file for record 1 14 with the clerk of the district court a copy of the demand with 1 15 proofs of service attached and endorsed and, in case of 1 16 service by publication, a personal affidavit that personal 1 17 service could not be made within this state. Upon completion 1 18 of the requirements of this subsection, the record shall be 1 19 constructive notice to all parties of the due forfeiture and 1 20 cancellation of the lien. Upon the filing of the forfeiture 1 21 of the lien, the clerk of the district court shall mail a 1 22 file-stamped copy of the cancellation to both parties. 1 23 Sec. 2. Section 572.24, Code 1999, is amended to read as 1 24 follows: 1 25 572.24 TIME OF BRINGING ACTION – COURT. 1 26 1. An action to enforce a mechanic's lien, or an action 1 27 brought upon any bond given in lieu thereof, may be commenced 1 28 in the district court after said lien is perfected. 1 29 2. An action to challenge a mechanic's lien may be 1 30 commenced in the district court or small claims court if the 1 31 amount of the lien is within jurisdictional limits. The court 1 32 shall make written findings regarding the lawful amount and 1 33 the validity of the mechanic's lien. If the court determines 1 34 that the mechanic's lien is invalid, valid for a lesser 1 35 amount, frivolous, fraudulent, forfeited, expired, or for any 2 1 other reason unenforceable, the clerk of the district court 2 2 shall make an entry of record to the mechanic's lien book 2 3 regarding the proper amount of the lien or, if warranted, 2 4 canceling the lien. 2 5 Sec. 3. Section 572.27, Code 1999, is amended to read as 2 6 follows: 2 7 572.27 LIMITATION ON ACTION. 2 8 1. An action to enforce a mechanic's lien may be brought 2 9 within two years from the expiration of the ninety days for 2 10 filing the claim as provided in this chapter and not 2 11 afterwards. 2 12 2. If an action is not filed within the time period 2 13 provided in subsection 1, the owner, agent, or trustee of the 2 14 property may file for record with the clerk of the district 2 15 court a copy of the file-stamped mechanic's lien and an 2 16 affidavit stating the date on which the mechanic's lien was 2 17 filed and that an action has not been filed to enforce the 2 18 mechanic's lien within two years from the expiration of the 2 19 ninety days for filing claims. Upon completion of the 2 20 requirements of this subsection, the record shall be 2 21 constructive notice to all parties of the due forfeiture and 2 22 cancellation of the lien. Upon the filing of the cancellation 2 23 of the lien, the clerk of the district court shall mail a 2 24 file-stamped copy of the cancellation to both parties. 2 25 Sec. 4. Section 572.28, Code 1999, is amended to read as 2 26 follows: 2 27 572.28 DEMAND FOR BRINGING SUIT. 2 28 1. Upon the written demand of the owner, the owner's 2 29 agent, or contractor, served on the lienholder requiring the 2 30 lienholder to commence action to enforce the lien, such action 2 31 shall be commenced within thirty days thereafter, or the lien 2 32 and all benefits derived therefrom shall be forfeited. 2 33 2. If an action is not filed within thirty days after 2 34 demand to commence action is served, the party serving the 2 35 demand or causing the demand to be served may file for record 3 1 with the clerk of the district court a copy of the demand with 3 2 proofs of service attached and endorsed and, in case of 3 3 service by publication, a personal affidavit that personal 3 4 service could not be made within this state. Upon completion 3 5 of the requirements of this subsection, the record shall be 3 6 constructive notice to all parties of the due forfeiture and 3 7 cancellation of the lien. Upon the filing of the forfeiture 3 8 of the lien, the clerk of the district court shall mail a 3 9 file-stamped copy of the cancellation to both parties. 3 10 Sec. 5. Section 572.32, Code 1999, is amended to read as 3 11 follows: 3 12 572.32 ATTORNEY FEES – REMEDIES. 3 13 1. In a court action to enforce a mechanic's lien, if the 3 14 plaintiff furnished labor or materials directly to the 3 15 defendant,thea prevailing plaintiff, if successful,shall be 3 16 awarded reasonable attorney fees. 3 17 2. In a court action to challenge a mechanic's lien, if 3 18 the person challenging the lien prevails, the court shall 3 19 award reasonable attorney fees and actual damages. If the 3 20 court determines that the mechanic's lien was filed in bad 3 21 faith or the supporting affidavit was materially false, the 3 22 court shall award the owner an amount not less than five 3 23 hundred dollars. 3 24 Sec. 6. Section 631.1, Code 1999, is amended by adding the 3 25 following the new subsection: 3 26 NEW SUBSECTION. 6. The district court sitting in small 3 27 claims has concurrent jurisdiction of an action to challenge a 3 28 mechanic's lien pursuant to sections 572.24 and 572.32. 3 29 EXPLANATION 3 30 This bill amends sections of Code chapter 572 relating to 3 31 mechanic's liens. 3 32 The bill provides a procedure for creating constructive 3 33 notice of the forfeiture and cancellation of a mechanic's lien 3 34 upon the failure to acknowledge satisfaction of the lien. The 3 35 bill provides a procedure for creating constructive notice of 4 1 the forfeiture and cancellation of a mechanic's lien upon 4 2 failure to timely file an action to enforce a mechanic's lien. 4 3 The bill provides a procedure for creating constructive notice 4 4 of the forfeiture and cancellation of a mechanic's lien upon 4 5 the failure to commence an action to enforce the lien within 4 6 30 days after a demand to commence action is served. 4 7 The bill creates an action to challenge a mechanic's lien 4 8 which may be commenced in either district court or small 4 9 claims court. The bill provides for the recording in the 4 10 mechanic's lien book of the proper amount of the lien or the 4 11 cancellation of the lien when the court makes such findings. 4 12 The bill provides that, in an action to challenge a mechanic's 4 13 lien, the prevailing party shall be awarded reasonable 4 14 attorney fees and actual damages. The bill provides that if 4 15 the mechanic's lien was filed in bad faith or the supporting 4 16 affidavit was materially false, the court shall award the 4 17 owner an amount not less than $500. 4 18 LSB 1213DP 78 4 19 tm/gg/8
Text: SSB01021 Text: SSB01023 Text: SSB01000 - SSB01099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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