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Advance Deposit Was Not Lienable Liens; Damages

Tuesday, December 02, 2003 06:05 pm

Advance Deposit Was Not Lienable Liens; Damages

A South Carolina court has ruled that a mechanic's lien could not include an advance deposit due upon contract signing. Liens cover labor and materials, not consequential damages for breach of contract.

The Randazzos awarded a contract to Zepsa Construction, Inc. to build a new restaurant facility in Fort Mill. The fixed contract price was $610,000, with a deposit of $61,000 due at contract signing.

The Randazzos paid only $21,000 of the deposit. After negotiations, Zepsa agreed to commence work and accept the balance of the deposit in two installments. Zepsa started work at the site. A month later, t [...]

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