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Landlord Waived Protection Against Liens Liens; Waiver

Thursday, January 02, 2003 12:08 pm

Landlord Waived Protection Against Liens Liens; Waiver

The South Dakota Supreme Court has ruled that a landlord waived its contractual protection against mechanic's liens when it allowed improvements to the property with full knowledge of the tenant's precarious financial condition.

Four Square Partnership owned a commercial building in Deadwood. Four Square leased the property to Iron Horse Inn which intended to develop a casino. The lease said Iron Horse would keep the property free of any mechanic's liens. The South Dakota mechanic's lien statute provides that "as against a lessor, no lien is given for repairs made by or at the instance [...]

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