NH Construction Law
  • Home
  • Blog
  • Links

#38:  Are Attorneys' Fees and Interest Lienable?

2/3/2016

5 Comments

 
When a plaintiff sues for money damages, he often seeks a lien or “attachment” on the defendant’s property – real estate being a particular favorite – as security for a judgment.  In New Hampshire, RSA 511-A:4 authorizes attachments “to the extent reasonably necessary to secure any judgment or decree which the plaintiff is likely to obtain” including “allowable interest and costs.” Such attachments are typically granted in an amount that will cover any contractual right to interest and attorneys’ fees.

Mechanic’s liens are perfected by attachments too.  What if the plaintiff’s contract includes the right to collect interest and attorneys’ fees?  Will the amount of his mechanic’s lien attachment include those things?  Our Supreme Court has yet to address this, but my answer is No ―although I’ve seen it happen a few times when overreaching plaintiffs and inattentive judges crossed paths.

Ideally, a mechanic’s lien statute should tell us what triggers the lien, what property is subject to the lien, and what debts it secures.  New Hampshire’s statute, RSA 447:2, is explicit on only first two of these: “If any person shall perform labor, provide professional design services, or furnish materials to the amount of $15 or more for erecting or repairing a house or other building or appurtenances, or for building any dam, canal, sluiceway, well or bridge, or for consumption or use in the prosecution of such work, other than for a municipality, by virtue of a contract with the owner thereof, he or she shall have a lien on any material so furnished and on said structure, and on any right of the owner to the lot of land on which it stands.”  Compare Massachusetts’ lien statute, G.L. c. 254 § 2, which gives general contractors a lien “to secure the payment of all labor, including construction management and general contractor services, and material or rental equipment, appliances, or tools which shall be furnished,” and G.L. c. 254 § 4, which gives subs and suppliers a lien “to secure the payment of all labor and material, which he is to furnish or has furnished.” This answers the third question.  See National Lumber Co. v. United Casualty & Surety Ins. Co., 440 Mass. 723, 726, 802 N.E.2d 82, 86 (2004) (“our inquiry is limited to whether a mechanic’s lien recorded pursuant to G. L. c. 254, s. 4, includes contractual interest and reasonable attorney’s fees in addition to the amount claimed for labor and materials. We conclude that it does not.”).

In the absence of express statutory language, the clincher for me is the underlying “value added” theory behind mechanic’s lien statutes.  When real estate is improved by labor and materials, it is presumed to increase in value, as measured by the price of the labor and materials.  It is fair to give the providers of labor and materials a lien to that extent because the owner is no worse off when his property is liened for the price of those unpaid goods and services.  The lien accomplishes a transfer of value from benefited owner to unpaid contractor or supplier in recognition of the value they added to the property.  Attorneys’ fees and interest, however, add no value to the property.  They are tools for making the contractor and supplier whole, but not for transferring a benefit realized by an owner back to the provider of the benefit.

Admittedly the presumption that property values increase by the contract price of improvements does not always hold.  I could have a piece of land worth $100,000 and hire you to build me a house at a price of $400,000 in the hope of having a $500,000 property when you’re done―but if you hit ledge digging the foundation hole and spend an extra $50,000 to remove it, I’ll owe you the extra $50K yet my home won’t be worth a penny more.  Justice Stevens’ observation is apt here: “As in every rule of general application, the match between the presumed and the actual is imperfect,” but aberrations are “so unlikely to prove significant in any particular case that we adhere to the rule of law that is justified in its general application.”  Arizona v. Maricopa County Medical Society, 457 U.S. 332, 344, 351 (1982).

5 Comments
Virginia Winkle link
9/30/2024 03:32:11 pm

Enjoyed reading the article above , really explains everything in detail, the article is very interesting and effective. Thank you and good luck in the upcoming articles

Reply
Brandon Veloz link
9/30/2024 03:33:05 pm

Thanks for sharing such a great information.. It really helpful to me..I always search to read the quality content and finally i found this in you post. keep it up!

Reply
George Holloman link
9/30/2024 04:02:39 pm

Yes, attorneys' fees and interest can be lienable in certain circumstances. Generally, liens arise from contractual agreements or statutory provisions that allow them.

Reply
Appliance Repair Service in Naperville, IL link
12/16/2024 11:55:38 pm

This post provides valuable insight into the complexities of liens and attachments in the context of New Hampshire law, especially regarding mechanic’s liens and the inclusion of attorneys’ fees and interest. It's clear that the distinction between the value added by labor and materials versus fees that make a contractor whole plays a key role in determining what a lien can cover.

In a similar way, when dealing with appliance issues, it’s important to understand what factors influence repair costs and service fees. At Premium Appliance Repair in Naperville, IL, we focus on providing transparent and fair appliance repair services. Like a mechanic’s lien that ensures contractors are paid for the value they add, we ensure our customers receive the highest quality service for their appliances, without hidden fees or surprises. Whether you're dealing with a malfunctioning refrigerator or a broken oven, we provide reliable, expert repairs that restore the value and functionality of your home.

Reply
Robert Poole link
2/25/2025 10:57:55 am

Yes, attorneys' fees and interest can be lienable, depending on the contract, statute, or court ruling. Some jurisdictions allow them in mechanics' liens or judgment liens if specified.

Reply



Leave a Reply.

    Author

    Frank Spinella

    Archives

    May 2025
    April 2025
    March 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    April 2024
    March 2024
    February 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    January 2019
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014

    Categories

    All

    RSS Feed

Proudly powered by Weebly