Construction Law

Refusal To Release Mechanics? Lien And Lis Pendens Following Payment Of Judgment Results In Award Of Fees

By Timothy Gordon

Front Range Home v. Stowell (Colo. App. 2007)

The Colorado Court of Appeals affirmed a trial court's award of attorney's fees to defendant based upon plaintiff?s conduct concerning the release of the mechanic?s lien and notice of lis pendens. Basically, plaintiff wins lawsuit, defendant pays judgment in full, but plaintiff refuses to release the lien and lis pendens without further explanation.

According to the Court, "although plaintiff was technically correct in arguing that defendant had failed to pay the small cost of obtaining release of the lien, plaintiff?s letter to defendant was entirely unclear concerning what costs it allegedly had not received. . . . [I]t was not until plaintiff?s response to defendant?s motion to compel that plaintiff finally clarified what 'cost' defendant had failed to pay. This resulted in a three-month delay in filing the release."

The trial court found that plaintiff?s silence or refusal to properly clarify and communicate its position was without substantial justification and needlessly caused defendant to incur attorney fees.

Read slip opinion

Full post as published by Colorado Construction Law on November 01, 2007 (boomark / email).