HB1759 (2006) Detail

Relative to liens for labor and materials.


HB 1759 – AS INTRODUCED

2006 SESSION

06-3041

05/10

HOUSE BILL 1759

AN ACT relative to liens for labor and materials.

SPONSORS: Rep. Infantine, Hills 13

COMMITTEE: Judiciary

ANALYSIS

This bill establishes conditions under which a lien on equipment may be established and discharged.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-3041

05/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to liens for labor and materials.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Liens for Labor and Materials; Scope of Lien Relative to Equipment. Amend RSA 447:2 to read as follows:

447:2 Buildings, etc. If any person shall, by himself, by herself, or with others, perform labor, provide equipment, or furnish materials to the amount of $15 or more for erecting or repairing a house or other building or appurtenances, or for building any dam, canal, sluiceway, well or bridge, or for consumption or use in the prosecution of such work, other than for a municipality, by virtue of a contract with the owner thereof, he or she shall have a lien on any material so furnished and on said structure, and on any right of the owner to the lot of land on which it stands. In order for a lien relating to equipment to be valid, there shall be a written contract with the owner authorizing the use of the equipment and the lien shall be provided only for equipment actually used in performing the work on the property.

2 Subcontractor Liens for Labor and Materials; Scope of Lien Relative to Equipment. Amend RSA 447:5 to read as follows:

447:5 Subcontractors. If a person shall, by himself, by herself, or with others, perform labor or furnish materials to the amount of $15 or more for any of the purposes specified in RSA 447:2, 447:3 and 447:4 and in RSA 453, by virtue of a contract with an agent, contractor, or subcontractor of the owner, he or she shall have the same lien as provided in said sections, provided, that he or she gives notice in writing to the owner or to the person having charge of the property that he or she shall claim such lien before performing the labor or furnishing the material for which it is claimed. In order for a lien relating to equipment to be valid, there shall be a written contract with the agent, contractor, or subcontractor authorizing the use of the equipment and the lien shall be provided only for equipment actually used in performing the work on the property.

3 Liens for Labor and Materials; Attachment Proceedings; Grounds for Discharging Lien. Amend RSA 447:10 to read as follows:

447:10 How Secured. Any such lien may be secured by attachment of the property upon which it exists at any time while the lien continues, the writ and return thereon distinctly expressing that purpose. Such attachment shall be made in accordance with RSA 511-A; provided, however, that the sufficiency of the assets of the party whose property is attached to satisfy any judgment obtained shall not be a basis for denying or discharging the plaintiff’s lien.

4 New Section; Bonding of Liens. Amend RSA 447:10 by inserting after section 10 the following new section:

447:10-a Bonding of Liens. In any proceeding in which the owner of property subject to a lien under RSA 447:2 through RSA 447:5 or RSA 453, or any other party to the action, seeks to discharge the lien, the court may, in its discretion, enter an order discharging the lien upon the condition that a bond with good and sufficient sureties be posted with the court in an amount determined by the court, provided that such bond amount shall not be more than 125 percent of the amount of the lien approved by the court. In any such action, the prevailing party shall be entitled to recover, in addition to its damages, its legal expenses, including reasonable attorneys’ fees, in the action. If it is not clear who is the prevailing party, the court shall allocate attorneys’ fees as it deems appropriate.

5 New Section; Contractual Lien Waivers. Amend RSA 447 by inserting after section 14 the following new section:

447:14-a Contractual Lien Waivers. The right to a lien created under this chapter may be waived by contract or other agreement, except that lien waivers contained in contracts or other agreements shall not be enforced if executed prior to the performance of such work.

6 Effective Date. This act shall take effect January 1, 2007.