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Owner Not Protected By "No Lien" Clause Liens; Waiver

Wednesday, February 09, 2005 01:02 pm

Owner Not Protected By "No Lien" Clause Liens; Waiver

A federal appeals court has ruled that when a prime contractor breached a subcontract, the project owner could no longer enforce a "no lien" provision in the subcontract.

PCS Nitrogen Fertilizer, L.P. awarded a contract to ICF Kaiser Engineering, Inc. for design and construction of a nitric acid facility in Geismar, Louisiana. The contract required Kaiser to pay and discharge any mechanic's liens arising out of the performance of the work and to indemnify PCS against any costs incurred due to liens.

Kaiser subcontracted a portion of the work to Shaw Constructors, [...]

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