Mechanic's Lien Case Law Update

The Minnesota Court of Appeals recently decided two matters with implications on mechanic's lien foreclosure procedures. The first case involves lien apportionment. In this matter, a lienholder filed a blanket mechanic's lien on a 41-acre residential development, but then sought to foreclose its entire lien against only three of the lots in the development. The court of appeals held that under certain limited circumstances such a practice is permissible. The Minnesota Supreme Court has granted review of this matter. In the second matter summarized below, the court of appeals took up the issue of "actual notice" of prior lien interests for determining lien priority. Please note that this matter may also be subject to review by the Minnesota Supreme Court.