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TEXAS MECHANICS LIEN LAW UPDATE

18th Annual Construction Law Conference

March 3 & 4, 2005

San Antonio, Texas

Steven E. Kennedy
Jeffrey A. Brannen

MCGUIRE, CRADDOCK & STROTHER, P.C.
DALLAS, Texas




TABLE OF CONTENTS

  1. Page v. Wood Structural Components, Inc.
    102 S.W.3d 720 (Tex. 2003)

    "Completion" of work for the purposes of the deadline set forth in the Texas Property Code for a claimant claiming through the original contractor is the date that the original contractor is complete, terminated or abandons the work.

  2. Page v. Marton Roofing, Inc.
    102 S.W.3d 733 (Tex. 2003)

    If an original contractor is replaced, a "fund trapping" notice based on work for or materials supplied to the original contractor does not trap funds owed to the replacement contractor.

  3. CVN Group, Inc. v. Delgado.
    95 S.W.3d 234 (Tex. 2002)

    Arbitrators have the authority to determine validity of liens, even on a homestead.

  4. Advance’d Temporaries, Inc. v. Reliance Surety Company
    2004 Tex. App. LEXIS 6577 (Tex. App.–Corpus Christi 2004)

    A temporary agency can have a lien under the mechanic's lien statute if it actually provides labor in direct prosecution of the work.

  5. Beard Family Partnership v. Commercial Indemnity Insurance Company
    116 S.W.3d 839 (Tex. App.--Austin 2003)

    Sureties are not obligated to give all-bills-paid affidavits to receive final payments on projects they complete. An owner breaches a construction contract when the inadequacies of its plans delays the completion of the work.

  6. \
  7. Texas Wood Mill Cabinets, Inc. v. Butter
    117 S.W.3d 98 (Tex. App.--Tyler 2003)

    "Completed" includes completing punch list work.

  8. Raymond v. Rahme
    78 S.W.3d 552 (Tex. App.--Austin 2002, no writ)

    Indebtedness to a subcontractor accrues on the last day of the last month that the subcontractor performs labor or furnishes material.

  9. General Electric Capital Corporation v. BCI Mechanical, Inc.
    Tex. App. 2002 LEXIS 362 (Tex. App.--Dallas 2002)

    The Court outlined the factors that determine whether personal property has become a fixture.

  10. Cavazos v. Munoz
    305 B.R. 661 (U.S. Dist. 2004)

    Recording of a constitutional lien is only necessary to enforce it against third parties, but not necessary to secure a foreclosure.

  11. Waterpoint International LLC v. Comerica Bank-Texas
    330 F.3d 339 (5th Cir. 2003)

    An assignee of a general contractor's receivables takes priority against a subcontractor who does not perfect its lien rights.

  12. Gibson v. Bostick Roofing and Sheet Metal
    148 S.W.3d 482 (Tex. App.--El Paso 2004, no writ)

    If a contractor is not working directly for the owner of the property, the contractor's constitutional lien only extends as far as the interest owned by the person or entity for whom it is working. If that person loses his interest in the property, the contractor's lien expires with it.




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