Editor's Notes

The prospective, contractual waiver and release of mechanic’s lien rights is often viewed with disfavor. In some states, lien rights are not just created by statute; they are enshrined in the state constitution. And generally, “no liens” clauses are narrowly construed to limit their impact.

A Louisiana appellate court recently stopped short of ruling a “no liens” clause unenforceable, instead allowing the contractor to maintain a mechanic’s lien because of the project owner’s prior breach. The owner had refused to pay for approved change order work.

The other case in this issue involves a municipality’s decision to deviate from the competitive bidding requirements. The city contended a backlog of necessary street repair work was a public health and safety threat.