Construction liens are powerful legal tools that allow contractors, subcontractors, suppliers, and certain design professionals to secure payment for labor, services, or materials furnished to improve real property. However, not every lien is valid. Property owners sometimes encounter liens that are defective, exaggerated, untimely, or even fraudulent. Likewise, contractors may face disputes over whether a lien was properly perfected or whether the amount claimed is legally recoverable.
Florida’s construction lien law, found in Chapter 713 of the Florida Statutes, provides specific procedures for challenging improper liens while also protecting the rights of legitimate lienors. Understanding these statutory defenses, important deadlines, and available legal remedies is essential for anyone involved in a construction dispute.
If you are facing a lien dispute, working with an experienced Florida construction lawyer can help protect your financial interests and ensure that your legal rights are preserved.
Understanding What Makes a Construction Lien Invalid
Not every recorded lien automatically creates an enforceable claim. Florida law imposes strict statutory requirements that must be followed before a lien may be enforced. Courts consistently recognize that the construction lien law must be substantially complied with, particularly regarding statutory notice and filing requirements.
Common reasons a construction lien may be challenged include:
- Failure to timely serve a Notice to Owner when required.
- Failure to record the Claim of Lien within the statutory deadline.
- Errors in the legal description or identification of the property.
- Failure to properly identify the contracting parties.
- Inclusion of amounts that are not lienable under Florida law.
- Failure to timely file a foreclosure lawsuit after recording the lien.
Because construction liens are entirely creatures of statute, even technical defects may significantly affect enforceability depending on the circumstances.
Statutory Defenses Available to Property Owners
Florida law provides several statutory defenses that property owners may raise when contesting a lien.
One common defense involves improper notice. Under Section 713.06, Florida Statutes, many subcontractors and suppliers must serve a timely Notice to Owner in order to preserve lien rights. Failure to comply with these notice requirements often defeats the lien.
Another defense involves untimely recording. Section 713.08 requires that a Claim of Lien generally be recorded no later than 90 days after the lienor’s final furnishing of labor, services, or materials. Missing this deadline generally renders the lien unenforceable.
Property owners may also argue that the lien includes amounts that are not legally recoverable. A construction lien is limited to labor, services, or materials furnished for an “improvement” to real property as contemplated by Chapter 713. Section 713.01(16), Florida Statutes, defines an “improvement” as a building, structure, construction, demolition, excavation, solid waste removal, landscaping, or any part thereof that is built, placed, made, or done on land or other real property for its permanent benefit. In addition, lien rights are limited to the categories of persons authorized by the statute. Section 713.01(19) defines a “lienor” to include contractors, subcontractors, sub-subcontractors, laborers, qualifying materialmen, and professional lienors under Section 713.03, and expressly provides that no other person may have a lien under this part. Thus, when evaluating a lien, an owner should consider not only whether the amount claimed is accurate, but also whether the work constitutes a lienable improvement and whether the claimant falls within a class of persons entitled to assert lien rights under Chapter 713. For example, anticipated profits on unperformed work, speculative damages, or unrelated charges may not constitute lienable amounts under Florida law.
Florida courts have repeatedly emphasized that lien claimants must strictly comply with statutory timing requirements. In Dracon Construction, Inc. v. Facility Construction Management, Inc., the court reinforced the importance of complying with statutory lien deadlines and procedural requirements before lien rights may be enforced.
Fraudulent or Willfully Exaggerated Liens
One of the strongest defenses available under Florida law involves fraudulent liens.
Section 713.31, Florida Statutes, provides that a lien is fraudulent if the lienor has willfully exaggerated the amount claimed, willfully included work that was not performed, asserted a claim for materials not furnished, or otherwise compiled the lien with willful and gross negligence demonstrating a reckless disregard for the rights of the property owner.
Importantly, not every dispute over the amount owed creates a fraudulent lien. Honest mistakes, accounting errors, or good faith disagreements regarding contract interpretation generally do not invalidate an otherwise proper lien.
The distinction between an innocent mistake and an intentionally exaggerated claim can significantly affect the outcome of litigation.
The Florida Supreme Court addressed this issue in Sam Rodgers Properties, Inc. v. Chmura, explaining that a fraudulent lien requires more than a simple error or disputed calculation. Instead, the evidence must demonstrate intentional wrongdoing or the type of willful conduct contemplated by Section 713.31.
Deadlines for Contesting a Construction Lien
Timing plays a critical role in construction lien disputes.
After recording a Claim of Lien, the lienor generally has one year to file a foreclosure action under Section 713.22, Florida Statutes. If no foreclosure lawsuit is timely filed, the lien typically expires by operation of law.
Property owners also possess statutory tools that can significantly shorten this enforcement period.
Under Section 713.21, Florida Statutes, an owner may record and serve a Notice of Contest of Lien. Once properly served, the lien claimant has only 60 days to file a foreclosure action or the lien is automatically extinguished.
Similarly, Section 713.22 allows owners to file a complaint for an order to show cause requiring the lien claimant to demonstrate why the lien should remain enforceable. This procedure may substantially accelerate judicial review of the lien’s validity.
These statutory remedies can be valuable strategic tools when an owner believes a lien lacks merit.
Strategies for Challenging an Invalid Lien
Successfully contesting a lien often requires a careful review of the construction project and the statutory requirements.
An experienced Florida construction lawyer will typically evaluate several important issues, including:
- Whether all required notices were properly served.
- Whether the lien was timely recorded.
- Whether the amount claimed accurately reflects lienable work.
- Whether contractual payment obligations were satisfied.
- Whether the lien claimant possessed valid licensing required under Florida law.
- Whether the foreclosure action was timely filed.
Construction projects frequently generate substantial documentation, including contracts, change orders, invoices, payment applications, inspection reports, correspondence, and accounting records. These documents often become the primary evidence used to establish whether a lien is legally enforceable.
Negotiating Resolution Before Litigation
Not every lien dispute requires a courtroom battle.
Many construction lien disagreements result from incomplete project documentation, payment misunderstandings, disputed change orders, or differing interpretations of contract provisions.
Early negotiation may allow the parties to resolve the dispute before significant attorney’s fees and litigation costs accumulate.
In some situations, property owners may elect to transfer the lien from the property by posting a transfer bond under Section 713.24, Florida Statutes. This procedure substitutes security for the real property while allowing the owner to sell, refinance, or otherwise deal with the property free of the recorded lien during the litigation.
Whether transferring the lien is advisable depends upon the particular facts of each case.
Why Experienced Legal Counsel Matters
Construction lien litigation involves numerous procedural rules, strict statutory deadlines, and highly technical legal requirements. Missing a deadline or misunderstanding the applicable statutory defenses can significantly affect the outcome of the dispute.
Jonathan P. Cohen, Esq. has devoted his practice to Florida construction law and regularly represents contractors, subcontractors, suppliers, developers, and property owners in complex construction payment disputes. Jonathan P. Cohen, P.A. assists clients with evaluating lien rights, defending against improper lien claims, pursuing lien foreclosure actions, resolving payment disputes, and protecting valuable legal interests throughout every stage of construction litigation.
Whether you believe a lien is invalid, exaggerated, or fraudulent, or you need to enforce legitimate payment rights, obtaining experienced legal guidance as early as possible can make a substantial difference.
Contact Jonathan P. Cohen, P.A.
If you are dealing with an invalid construction lien, a disputed payment claim, or need assistance protecting your rights under Florida’s Construction Lien Law, contact Jonathan P. Cohen, P.A. An experienced Florida construction lawyer can evaluate your situation, explain your legal options, and develop an effective strategy to challenge or enforce construction lien rights while protecting your financial interests.
The information provided in this article does not, and is not intended to, constitute legal advice. The content in this article is presented for general informational purposes only.