Friday, June 4, 2010

Lien Law: Using Templates to Anticipate and Control Litigation Costs




Michael Hyatt (CEO of Thomas Nelson Publishing) has posted several excellent recommendations about using templates for greater efficiency on tasks that are often repeated. Mr. Hyatt has written: “For years, I have used the concept of ‘templating’ to improve my productivity. The idea is that you create a template for any task that you find yourself doing repeatedly. So instead of ‘reinventing the wheel’ every time, you do it once, save it as a template, and then reuse it.”

In my construction litigation practice, I have used various templates to make my life easier during various stages of construction disputes.

One of the templates that I use is a mechanic’s lien information sheet that outlines the background information that is needed for me to file a Notice of Lien or Lien on behalf of a client. The type of information that I need to file a lien includes the following:

• Is the project residential or commercial?
• Is the project public or private?
• Is the Contract with the owner of the property or the prime contractor?
• Was a 20-Day Preliminary Lien Notice filed? If so, when?
• Name and address of property owner, prime contractor, and lender, if any.
• Name of project/subdivision; property location map; and property address and/or lot number.
• Type of service/material/labor supplied to the project.
• Commencement date (ground breaking) of the project.
• Beginning date of your work on the project.
• Total amount invoiced to date with a copies of the invoices.
• Amount owed or unpaid on the project.
• Last date of your work on the project.
• Date entire project was completed.
• Any “Notice of Completion” recorded?
• Any payment bonds issued?

While this information appears to be a no-brainer request for those contractors who file liens on a regular basis, I have found over the years that my clients appreciate the template that I send them. This way, there is no confusion about what information I need from them and I am able to more efficiently help my clients pursue their rights.

Using templates in the manner suggested by Mr. Hyatt has also allowed me to be able to provide my clients with a Flat-Fee Cost Sheet for lien litigation. The Flat-Fee Cost Sheet “fixes” costs for repetitive tasks that are part of lien litigation like filing liens, stop notices, foreclosure complaints, and basic motions for summary judgment related to lien litigation and foreclosure. And it allows clients to anticipate costs and feel more comfortable with costs associated with protecting their rights through the lien process. If you are interested in obtaining a copy of my Flat-Fee Cost sheet for lien litigation, please feel free to contact me by phone or email.

For more information contact Jared M. Scarbrough at jscarbrough@holmwright.com or (480) 477-8589.

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