***This post’s original content has been edited to reflect the legislative changes enacted pursuant to the passing of LA HB 203
Like contractors, subcontractors, design professionals, and sub-subcontractors, material suppliers can file a Louisiana mechanics lien. Louisiana Revised Statute 9:4802(A)(3) provides material suppliers with a claim directly against the property owner.
Louisiana courts will uphold a supplier lien, however, if the procedures are not followed exactly, the courts will deny any rights thereunder.
Below is a summary of the requirements if a material supplier is going to file a lien.
Notice of Non-Payment
Suppliers are required to send a Notice of Non-Payment within 75 days of the last day of each month that supplies were furnished. Generally, liens must be filed within 60 days of substantial completion of the project.
A Notice of Non-Payment should include:
1) the name and address of the seller of movables;
2) a general description of the materials provided;
3) a description sufficient to identify the immovable property against which a lien may be claimed, and
4) a written statement of the seller’s lien rights for the total amount owed, plus interest and recordation fees.
Filing the Lien
A supplier’s lien is filed the same as an ordinary contractor lien, but there are some additional time obligations. If a general contractor files a notice of contract and subsequently files a notice of termination, then the supplier must file its lien within 6 months of substantial completion or within 60 days of the notice of termination.
If no notice of contract has been filed, then the supplier has 60 days from substantial completion. A lawsuit must be initiated within one year from the date of filing in order to extend the lien and make it enforceable.
Should you have any questions or you would like to discuss this issue in further detail, please do not hesitate to contact us to schedule a free consultation.