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Contractor With No Project Ownership Can't Invalidate Lien

Monday, November 30, 2009 03:15 am



RMT, Inc. v. SPE Utility Contractors, LLC

U.S. District Court for the Eastern District of Michigan, Northern Division

2009 U.S. Dist. LEXIS 77150 (August 4, 2009) Three examples of courts allowing non-property-owners to challenge construction liens were not a charm for a contractor under Michigan's jurisdiction. Nevertheless, the judge in this case may have opened an avenue for contractors seeking to remove liens in the future.

General contractor RMT, Inc. (RMT) hired installation subcontractor SPE Utility Contractors, LLC (SPE) for a project to construct a windpark in Huron County, Michigan. After a dispute arose over change orders that modified the work and resulting compensation, SPE filed a construction lien. RMT countered by filing for declaratory judgment that the sub's lien was invalid. SPE claimed it wasn't RMT's place to challenge the lien, [...]

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