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Lien Release Did Not Require Consideration Liens; Release

Wednesday, March 03, 2004 12:21 pm

Lien Release Did Not Require Consideration Liens; Release

The North Dakota Supreme Court has ruled that a contractor's release of mechanic's lien rights does not need to be supported by any consideration furnished by the project owner.

RPB 2, LLC purchased the Palace Arms Hotel in Bismarck, subject to a mortgage held by First Union National Bank. RPB awarded a renovation contract to Able Painting and Contracting.

When Able Painting was not paid in full, Able filed a notice of intention to assert a mechanic's lien on the property. RPB approached Able and asked the contractor to sign a waiver and release of lien. RPB said the release would enabl [...]

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