In Management &
Consulting, Inc. v. Tech Electric, Inc., the District Court of Appeal of
Florida, Third District, reviewed a lower court’s denial of a motion for
discharge of a mechanic’s lien. 2020 WL 1540958 (Fla. 3d Dist. Ct. App. 2020). The
Appellate Court found a subcontractor failed to comply with the requirements of
section 713.21(4), Florida Statutes, when it asserted the validity of its
mechanic’s lien, but failed to show good cause as to why its lien had not been
enforced or file a foreclosure suit within the statutory timeframe.
The petitioner, M&C-Buslam,
was the general contractor, and Tech Electric was the subcontractor hired by
M&C-Buslam to do the electrical work for the project. Tech Electric filed a
mechanic’s lien against the project after it was terminated, but did not take
any further action on the lien. Thereafter, M&C-Buslam filed suit against
Tech Electric and sought a summons/order to show cause why the lien should not
be extinguished. Tech Electric did not file an action to foreclose the lien
within the 20-day timeframe, but did file a “Verified Response to the Order to
Show Cause.”
Although the response set forth
reasons for the lien’s validity, it did not communicate good cause for why Tech
Electric had failed to file an action to foreclose the lien or request
additional time to do so. Based on this, M&C-Buslam filed a motion to discharge
the lien for noncompliance with the statute after the expiration of the 20-day
statutory period. The trial court denied M&C-Buslam’s motion on the basis
that Tech Electric’s assertions as to the validity of the lien in its response satisfied
the good cause requirement. M&C-Buslam petitioned for writ of certiorari,
asking the Appellate Court to review the lower court’s denial of its motion for
discharge of Tech Electric’s lien.
Florida law requires strict
compliance with the statutory provisions governing mechanic’s liens. In this
case, the District Court of Appeal of Florida, Third District, found the
requirements of section 713.21(4) are clear: a lienor has 20 days to either
show good cause why a foreclosure action has not yet been filed and why the
lien should not be discharged, or the lienor must file a foreclosure action
within the allotted 20-day period. Tech Electric did not file an action within
the timeframe and its response only addressed the validity of the lien. Thus,
the Appellate Court found Tech Electric failed to show good cause as to why its
lien had not been enforced and therefore failed to comply with the requirements
of section 713.21(4). The Appellate Court granted M&C Buslam’s writ of
certiorari and quashed the trial court’s order.
Florida contractors and
subcontractors should take note of this decision when contemplating filing
their own mechanic’s liens and seek legal counsel to ensure that liens satisfy
the statutory requirements and are properly enforced. This decision emphasizes
the importance in Florida of strictly complying with the requirements of
section 713.21(4) to protect a mechanic’s lien from discharge.
