Ohio Court of Appeals Clarifies Time for Serving Notice of Furnishing under Mechanic's Lien Law
posted by Michael R. Fortney | Aug 14, 2019 08:22 AM in Construction Law
In a case litigated by Michael L. and Michael R. Fortney of Stark & Knoll, the Court of Appeals for Ohio’s Ninth District held that Ohio’s mechanic’s lien law protects subcontractors who serve a notice of furnishing prior to performing work on a project, but after a notice of commencement is recorded. The Court of Appeals reversed the trial court’s decision that the notice of furnishing was defective because it was served before the subcontractor performed work on the project. Subcontractors are no longer confined to the illogical time restrictions imposed by the trial court.
Pursuit Commercial Door Solutions v. ROCE Group involved the construction of a hotel in Stow. ROCE, the owner of the hotel, recorded its notice of commencement on May 6, 2015. Pursuit entered into a subcontract with the general contractor and served its notice of furnishing upon ROCE on September 10, 2015. Pursuit did not begin working on the project until October 17, 2015. The trial court held that Pursuit’s notice of furnishing was served prematurely and thus invalid. The trial court relied heavily on Halsey, Inc. v. Isbel, a 2010 decision by the 12th District Court of Appeals. Halsey, a home construction case, stated that a notice of furnishing may only be served beginning on the first day of work on a project and ending 21 days later, a small window. On appeal, Pursuit argued that, because the notice of furnishing requirement does not apply to home construction projects, the Halsey Court’s statements regarding the notice of furnishing were wrong.
The mechanic’s lien law provides that a notice of furnishing must be served “at any time after the recording of the notice of commencement or amended notice but within twenty-one days after performing the first labor or work.”
In Pursuit Commercial Door Solutions, the Ninth District Court held that the mechanic’s lien law, specifically R.C. 1311.05, is clear. The Court held that “there are two timing requirements for the service of a notice of furnishing under R.C. 1311.05(A): first, it must be after the recording of the notice of commencement or amended notice; second, it must be within twenty-one days after performing the first labor or work or furnishing the first materials. There is no requirement that a notice of furnishing can only be filed after the commencement of labor or the furnishing of materials.”
This case is consistent with other cases conveying the idea that the purpose of the mechanic’s lien law is to protect subcontractors and suppliers who perform work across Ohio, and a notice of furnishing served before working on a project does just that.
The construction attorneys at Stark & Knoll tirelessly fight for a fair playing field in construction litigation for their clients. If you have issues on a construction project, contact the construction attorneys at Stark & Knoll.
