Mechanics lien law in Pennsylvania can be a procedural and substantive morass to the uninitiated. Many find the filing requirements, class of claimants, and priority rules may pose a challenge in advising lenders and contractors in how to protect their respective interests. The recent Superior Court case Commerce Bank/Harrisburg v. Kessler , 2012 WL 1610139, has the potential to change the method under which banks lend money for the construction, repair or alteration of a premises.
Because of amendments to the Mechanics Lien Law effective Jan. 1, 2007, it appeared the overriding issue the court had to decide in this case was whether a building contractor, who commenced work in October 2006, enjoyed lien priority over a bank that filed an open-ended mortgage on the same premises in January 2007. The trial court granted the contractor priority on the basis of its refusal to apply the amendments retroactively.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
