The New Jersey Construction Lien Law (CLL), N.J.S.A. 2A:44A-1-38, presents a powerful tool for contractors and suppliers to ensure payment for services, material and equipment. Through simple filings with the county clerk and court, an unpaid contractor can secure a lien on the real property where the work was performed. Thus, although the failure to make payment may rest with the general contractor or a senior subcontractor, the lien creates a security interest in the real property impacting on the on the owner’s rights—representing a surefire way to get its attention and, ideally, compel payment.
For this reason, owners, construction managers and related parties often fiercely contest the filing of a lien arguing, among other things, that the CLL is subject to strict interpretation asserting some technical defect in the lien claim. This is misguided. In fact, the CLL’s enforcement provisions are to be liberally construed to assure payment in accord with the statute’s purpose. This article details the correct interpretation of the enforcement mechanisms under the CLL, as articulated by the Supreme Court of New Jersey, to ensure payment for services rendered.
The Statutory Scheme
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