Service of Mechanics' Lien Statement Effective Upon Mailing by Certified Mail
8/12/2004
On Juy 29, 2004, the Minnesota Supreme Court ruled that service of mechanics' lien statement by certified mail is effective upon mailing.
Minnesota Statute § 514.08 requires that a mechanics' lien statement be served by hand or certified mail within 120 days after the lien claimant's last contribution of labor or material to the project. g The statute, however, said nothing as to whether service by certified mail is complete upon mailing or upon receipt for the purposes of meeting the 120-day deadline. That question has now been definitively determined by the Minnesota Supreme Court in Eischen Cabinet Co. v. Hildebrandt, 2004 WL 1688180 (Minn. 2004). Service is complete upon mailing.
Meeting the 120-day deadline is extremely important because failure to do so results in the loss of a claimant's right to a lien. In Eischen, the Court considered an instance where a lien claimant deposited the mechanics' lien statement in the mail on the 119th day after the claimant's last day of work. Delivery of the statement, however, did not occur until after the 120-day period had passed. Reversing contrary rulings below by the district court and Court of Appeals, the Supreme Court held that service of the mechanics' lien statement by certified mail is effective upon mailing.
This decision is an important reminder that mechanics' lien claimants should contact legal counsel to arrange for preparation and service of a mechanics' lien statement well in advance of the 120-day statutory limit. In general, Lommen Nelson recommends that it be contacted regarding prospective mechanics' lien filings between 60 and 90 days after the lien claimant's last day of work. This allows us to orderly determine the correct legal description of the property to be liened, the correct party or parties to be served, and to accomplish service in a timely manner. If you have questions regarding the Eischen case, would like assistance filing a mechanics' lien statement in Minnesota, or have other construction-related questions, please contact John Giblin at johng@lommen.com or 612-336-9336. For advice regarding mechanics' lien filings and construction law in Wisconsin, please contact Brent Johnson at brent@lommen.com or 715-381-7104.