Chapter 345

2008 -- H 7765 SUBSTITUTE A

Enacted 07/04/08

 

A N A C T

RELATING TO PROPERTY -- MECHANICS' LIENS

          

     Introduced By: Representative Donald J. Lally

     Date Introduced: February 26, 2008

   

It is enacted by the General Assembly as follows:

 

     SECTION 1. Sections 34-28-4, 34-28-9 and 34-28-17 of the General Laws in Chapter 34-

28 entitled "Mechanics' Liens" are hereby amended to read as follows:

 

     34-28-4. Notice of intention to claim lien. -- (a) Except as provided in section 34-28-7,

any and all liens claimed or that could be claimed under sections 34-28-1, 34-28-2 or 34-28-3

shall be void and wholly lost to any person claiming under those sections unless the person shall,

before or within two hundred (200) days after the doing of such work or the furnishing of such

materials, mail by prepaid registered or certified mail, in either case return receipt requested, a

notice of intention, hereinafter described, to do work or furnish material, or both, together with a

statement that the person so mailing may within two hundred (200) days after the doing of the

work or the furnishing of the materials, file a copy of such notice of intention in the records of

land evidence in the city or town in which the land generally described in such notice of intention

is located and a further statement that the mailing of the notice of intention and the filing of the

copy will perfect a lien of the person so mailing against the land under and subject to the

provisions of this chapter, to the owner of record of the land at the time of the mailing, or, in the

case of a lien against the interest of any lessee or tenant, to the lessee or tenant, the mailing to be

addressed to the last known residence or place of business of the owner or lessee or tenant, but if

no residence or place of business is known or ascertainable by the person making the mailing by

inquiry of the person with whom the person making the mailing is directly dealing or otherwise,

then the mailing under this section shall be to the address of the land, and also shall before or

within two hundred (200) days after the doing of the work or the furnishing of the materials file a

copy of the notice of intention in the records of land evidence in the city or town in which the

land generally described in the notice of lien is located. The mailing of the notice of intention and

the filing of the copy in the land evidence records together with the mailing of another copy

thereof as hereinbelow provided shall perfect, subject to other sections of this chapter, the lien of

the person so mailing and filing as to work done or materials furnished by the person during the

two hundred (200) days prior to the filing mailing and thereafter, but not as to work done or

materials furnished by the person before the two hundred (200) days prior to the filing mailing,

any lien for which shall be void and wholly lost. In the event that the notice of intention, having

been mailed, shall be returned to the person mailing the notice, not having been delivered for any

reason, the lien of the person so mailing shall be void and wholly lost, notwithstanding any other

provision of this section, unless such person shall, within thirty (30) days after the return of the

notice of intention, and in no event more than two hundred (200) days after the mailing of the

notice, file the notice together with the envelope in which the notice was returned, in the place

and manner and with the consequences hereinbefore provided for the filing of a copy of the notice

of intention, and the filing shall be in lieu of any filing required at any other time under this

section.

      (b) The notice of intention shall be executed under oath and shall contain:

      (1) The name of the owner of record of the land at the time of the mailing, or in the case

of a lien against the interest of any lessee or tenant, the name of the lessee or tenant, and the

mailing address of the owner or lessee, the name and address to be located at the upper left hand

corner of the notice, in addition to the text of the notice, as described in subsection (c);

      (2) A general description of the land sufficient to identify it with reasonable certainty,

including, for example only, street name and number, if available;

      (3) A general description of the nature of the work done or to be done, or of the materials

furnished, or to be furnished, or both, and the approximate value thereof as of the date of the

notice;

      (4) The name and address of the person or persons for whom directly the work has been

done or is to be done, or to whom directly the materials have been furnished or are to be

furnished;

      (5) The name and address of the person mailing the notice and the name of the individual

person or persons whose signature will bind the person so mailing on all matters pertaining to the

notice or any lien claimed thereunder, or release thereof.

      (6) A statement that the person mailing the notice has not been paid for the work done or

materials furnished or both.

      (c) The notice may be in substantially the following form:

     ________________________________________________________________________

     (Name of owner of record/Lessee)

     ________________________________________________________________________

     (Address of owner/Lessee)

     NOTICE OF INTENTION TO DO WORK OR FURNISH MATERIALS, OR BOTH

     All persons are hereby notified that the undersigned has within the two hundred (200)

days prior to the mailing hereof done work, furnished materials, or both, and/or intends to do so

in the future (cross out inappropriate words), in the construction, erection, alteration, or

preparation of an improvement on land described as follows: (here insert description) and that the

land is owned by or leased to (here insert name of owner or lessee or tenant). The nature of the

work being done or materials being furnished is as follows: (here insert general description of the

nature of the work or materials, or both) and is being done for or furnished to (here insert name of

person or persons for whom directly the work is being done or to whom directly the materials are

being furnished), whose address is (here insert address). The approximate value of said work or

materials is, as of the date of the notice, $(include amount), itemized as follows: and the

undersigned has not been paid for the work or materials or both; The undersigned authorizes

(here insert name or names) to act or sign documents in behalf of the undersigned in all matters

pertaining to this notice, or any lien claimed hereunder, or release thereof. You are hereby

informed that the undersigned may within two hundred (200) days of the performance of the

work or furnishing of the materials, file in the records of land evidence of the city or town of

(here insert name of city or town) a copy of this notice of intention to do work or furnish

materials. The filing of the notice of intention, together with this mailing, will perfect a lien

against the land described herein, under and subject to the provisions of the Rhode Island

Mechanics' Lien Law. _______________________________________

      _______________________________________

     (Name and address of person filing notice)

     NOTORIZATION CLAUSE

     _______________________

     Signed and sworn before me this___________________________day of ____________,

      _______________________________________

      Notary Public

      My Commission Expires:

     

     34-28-9. Effective period of notice. -- A notice of intention filed under lien recorded in

the land evidence records pursuant to section 34-28-4 shall cover all work done or materials

furnished, or both, within its terms, and shall be effective only for two hundred (200) days from

prior to the date of filing. A notice of lien shall be effective as to any retainage earned but not

paid, for work furnished pursuant to section 34-28-1 et. seq., and said notice of lien shall be

effective from commencement of said work. Retainage is a percentage of the total contract

amount that is withheld by the owner from the general contractor and by the general contractor

from the subcontractor until the entire job is completed and the project is accepted by the owner

and by the general contractor, at which time the retainage due is paid.

 

     34-28-17. Dismissal of complaint, notice of lien, and release of lien upon deposit in

court. -- (a) At any time after the recording of a notice of intention or after the filing of a

complaint to enforce a lien under sections 34-28-10 and 34-28-13, the owner or lessee or tenant

of the land described in the notice or complaint may pay into the registry of the court in the

county in which the land is located cash equal to the total amount of the notice of intention and

the accounts and demands of all persons claiming liens therein under section 34-28-1, 34-28-2,

34-28-3 or 34-28-7, including costs, interest at the statutory rate and reasonable attorney's fees of

the lien holder, or may, in lieu of cash, deposit in the registry of the court the bond of a surety

company licensed to do business in this state in the total amount including costs, interest at the

statutory rate and reasonable attorney's fees running to all persons claiming liens under sections

34-28-10 and 34-28-13, and on proper proof of payment or deposit and on motion of the owner or

lessee or tenant, any justice of the superior court shall enter ex parte an order discharging the

notice of intention and lis pendens and dismissing the cause as to the owner or lessee or tenant

and as to all persons having any title, claim, lease, mortgage, attachment or other lien or

encumbrance (other than under section 34-28-1, 34-28-2, 34-28-3 or 34-28-7), and on the entry of

the order, the building, canal, turnpike, railroad or other improvement and the land on which the

improvement is being or has been constructed, erected, altered, or repaired shall be released and

discharged from the notices of intentions and accounts and demands, but the rights of all persons

having any title, claim, lease, mortgage, attachment or other lien or encumbrance (other than

under section 34-28-1, 34-28-2, 34-28-3 or 34-28-7) shall be the same as if no notices of intention

under section 34-28-4 had been mailed or filed and as if no complaint under sections 34-28-10

and 34-28-13 had been filed. In the event that a payment is made into the registry of court in

accordance with this section, any person, having a contract directly with the person making the

payment, may be permitted, after notice to all parties under the complaint and after hearing in

open court, to withdraw from the registry of court the sum of money due to him or her under the

contract, provided that the person making the withdrawal first furnish a bond, payable to the clerk

of court, with good and sufficient corporate surety, for the repayment of the amount, or as much

thereof as may be necessary to satisfy claims thereinafter allowed by the court.

      (b) Notwithstanding the foregoing provisions, after depositing cash or the bond of a

surety company the following shall apply:

      (1) In the event that a notice of intention has been recorded, but no complaint filed, the

person or other entity claiming the lien shall file the complaint against the surety within the time

limits as noted in section 34-28-10. In the event of a cash deposit as noted in section 34-28-17,

the complaint shall be brought against the clerk of the respective superior court for any deposit

that is posted in the registry within the time limits as noted in section 34-28-10.

      (2) In the event that the complaint has been filed with the appropriate superior court, and

after depositing cash or the bond of a surety company and discharging the notice of intention and

lis pendens, and dismissing the cause as noted in this section, the lien plaintiff shall amend the

complaint, to include the surety as defendant within sixty (60) days after the person or entity

claiming the lien is given notice of the order in regard to the bond. In the event of a cash deposit

as noted in section 34-28-17, the complaint shall be amended and brought against the clerk of the

respective superior court for any cash deposit that is posted in the registry within sixty (60) days

after the person or entity claiming the lien is given notice of this order in regard to the cash

deposit.

      (c) The complaint filed against a surety, or the clerk of any respective superior court,

pursuant to subsection (b) of this section need not comply with any procedural requirements of

sections 34-28-10, 34-28-11, 34-28-12, 34-28-14, or 34-28-15.

 

     SECTION 2. This act shall take effect upon passage.

     

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LC02242/SUB A

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