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CONTRACTOR'S LIEN IMPROPERLY INCLUDED PROFITS AND UNUSED MATERIALS

Thursday, November 15, 2012 02:44 am

 

Liens

Erdman Co. v. Phoenix Land & Acquisition, LLC, 2012 U.S. Dist. Lexis 125018 (W.D. Ark. Sept. 4, 2012)

Arkansas law allows liens on completed fixed-price contract projects to include profits--but the emphasis is on completed projects.

Phoenix Health, LLC (Phoenix) hired Erdman Company (Erdman) to design and build an addition to its Fort Smith, Arkansas hospital under a fixed-price contract. Phoenix eventually stopped paying Erdman and Erdman walked off the job after a dispute arose over who was liable for damage that resulted from drilling an elevator shaft. Erdman later sought remedy under its contractor's lien. Phoenix argued, and a district court ag [...]

 
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