From time-to-time we see lien legislation abused or distorted
for mischievous purposes. Anyone who deals with liens on a regular
basis has witnessed such abuse. Anyone involved in the lien process
– owners, contractors, subcontractors, suppliers, and yes
even lawyers – can be guilty of such abuse.
One of the more common abuses is the mischievous lien registered
by a subcontractor. The registration of a lien can have fairly
significant consequences. It will often disrupt project financing
and suspend further payments by the construction owner. It can also
be costly to get resolved. All experienced subcontractors know
this, and use it to their protection or advantage when appropriate.
Unscrupulous subcontractors will register liens even when they know
they do not have the right to do so.
