Construction Lien Is Enforceable Against Landlord that Contracted for the Work

February 20, 2022

What Happened: A landlord and tenant hired a contractor to construct improvements on a leased movie theater. The subcontractor that installed the drywalls recorded a lien for the work and sought to foreclose when it didn’t get paid. The landlord asked the court to dismiss the claim under a state law prohibiting enforcement of liens against owners of property who record a lease banning such claims. The trial court sided with the landlord.

Ruling: The Florida appeals court reversed, finding that the subcontractor could foreclose.

What Happened: A landlord and tenant hired a contractor to construct improvements on a leased movie theater. The subcontractor that installed the drywalls recorded a lien for the work and sought to foreclose when it didn’t get paid. The landlord asked the court to dismiss the claim under a state law prohibiting enforcement of liens against owners of property who record a lease banning such claims. The trial court sided with the landlord.

Ruling: The Florida appeals court reversed, finding that the subcontractor could foreclose.

Reasoning: The state law ban on foreclosure didn’t apply in this case because the landlord and tenant both contracted for the work, with the contract naming each party as “Owner” of the property. Having personally contracted for the improvements, the landlord was on the hook to pay for them, and the trial court was wrong to bar the subcontractor’s foreclosure action.

  • K.D. Constr. of Fla., Inc. v. MDM Retail, Ltd., 2021 Fla. App. LEXIS 15235, 2021 WL 5617447

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