Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 296--S.F.No. 954
           An act relating to commerce; mechanics' liens; 
          providing notice requirements for certain contractors; 
          increasing the time periods relating to an owner's 
          obligation to pay a contractor and the duration of the 
          lien; amending Minnesota Statutes 1982, sections 
          514.011, subdivisions 1 and 2; 514.07; and 514.08, 
          subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 514.011, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CONTRACTORS.] Every person who enters into 
a contract with the owner for the improvement of real property 
and who has contracted or will contract with any subcontractors 
or materialmen to provide labor, skill or materials for the 
improvement shall give include in any written contract with the 
owner the notice required in this subdivision and shall provide 
the owner with a copy of the written contract.  If no written 
contract for the improvement is entered into, the notice shall 
must be prepared separately and delivered personally or by 
certified mail to the owner or his authorized agent within ten 
days after the contract for the work of improvement is agreed 
upon.  The notice shall, whether included in a written contract 
or separately given, must be in at least 10-point bold type, if 
printed, or in capital letters, if typewritten and shall must 
state as follows: 
    (a) persons or companies furnishing labor or materials for 
the improvement of real property may enforce a lien upon the 
improved land if they are not paid for their contributions, even 
if such the parties have no direct contractual relationship with 
the owner; 
    (b) Minnesota law permits the owner to withhold from his 
contractor so as much of the contract price as may be necessary 
to meet the demands of all other lien claimants, pay directly 
such the liens and deduct the cost thereof of them from the 
contract price, or withhold amounts from his contractor until 
the expiration of 90 120 days from the completion of such the 
improvement unless the contractor furnishes to the owner waivers 
of claims for mechanics' liens signed by persons who furnished 
any labor or material for the improvement and who provided the 
owner with timely notice. 
    A person who fails to provide the notice shall not have the 
lien and remedy provided by this chapter. 
    The notice required by this subdivision is not required of 
any person who is himself an owner of the improved real estate, 
to any corporate contractor of which the owner of the improved 
real estate is an officer or controlling shareholder, to any 
contractor who is an officer or controlling shareholder of a 
corporation which is the owner of the improved real estate, or 
to any corporate contractor managed or controlled by 
substantially the same persons who manage or control a 
corporation which is the owner of the improved real estate. 
     Sec. 2.  Minnesota Statutes 1982, section 514.011, 
subdivision 2, is amended to read: 
    Subd. 2.  [SUBCONTRACTOR TO GIVE NOTICE.] Every person who 
contributes to the improvement of real property so as to be 
entitled to a lien pursuant to section 514.01, except a party 
under direct contract with the owner must, as a necessary 
prerequisite to the validity of any claim or lien, cause to be 
given to the owner or his authorized agent, either by personal 
delivery or by certified mail, not later than 45 days after the 
lien claimant has first furnished labor, skill or materials for 
the improvement, a written notice in at least 10-point bold 
type, if printed, or in capital letters, if typewritten, which 
shall state: 
    "Please take notice that persons or companies furnishing 
labor or materials for the improvement of real property may 
enforce a lien upon the improved land if they are not paid for 
their contributions, even if such the parties have no direct 
contractual relationship with the owner.  
We ......................................................
             (name and address of subcontractor)
have been hired by your contractor ......................
                                (name of your contractor)
to provide ...................... or ............... for 
             (type of service)         (material)
use in improving your property.  We estimate our charges 
will be ............................. .
       (value of service or material)
    If we are not paid by your contractor, we can file a claim 
against your property for the price of our services unless, 
prior to your receipt of this notice, you have paid to your 
contractor the full amount of all improvements furnished.  
    To protect yourself, Minnesota law permits you, as the 
owner, to withhold from your contractor so as much of the 
contract price as may be necessary to meet our demands, pay us 
directly and deduct the cost thereof of them from the contract 
price, or withhold the amount of our claim from your contractor 
until the expiration of 90 120 days from the completion of the 
improvement unless your contractor furnishes to you a waiver of 
claim for mechanics' liens signed by me (us)."  
     Sec. 3.  Minnesota Statutes 1982, section 514.07, is 
amended to read: 
    514.07 [PAYMENTS WITHHELD; LIEN WAIVERS.] 
    The owner may withhold from his contractor so as much of 
the contract price as may be necessary to meet the demands of 
all persons, other than such the contractor, having a lien upon 
the premises for labor, skill, or material furnished for the 
improvement, and for which the contractor is liable; and.  He 
may pay and discharge all such these liens and deduct the cost 
thereof of them from such the contract price.  No owner shall be 
required to pay his contractor until the expiration of 90 120 
days from the completion of the improvement, except to the 
extent that the contractor shall furnish furnishes to the owner 
waivers of claims for mechanics' liens signed by persons who 
furnished labor, skill or material for the improvement and who 
have given the notice required by section 514.011, subdivision 
2.  The owner, within 15 days after the completion of the 
contract, may require any person having a lien hereunder, by 
written request therefor, to furnish to him an itemized and 
verified account of his lien claim, the amount thereof of it, 
and his name and address; and.  No action or other proceeding 
shall may be commenced for the enforcement of such the lien 
until ten days after such the statement is so furnished.  The 
word "owner," as used in this section, includes any person 
interested in the premises otherwise other than as a lienor 
thereunder.  
    Sec. 4.  Minnesota Statutes 1982, section 514.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  [NOTICE REQUIRED.] The lien shall cease 
ceases at the end of 90 120 days after doing the last of such 
the work, or furnishing the last item of such skill, material, 
or machinery, unless within such this period: 
    (1) a statement of the claim therefor, be is filed for 
record with the county recorder of the county in which the 
improved premises are situated, or, if the claim be is made 
under section 514.04, with the secretary of state; and 
    (2) a copy of such the statement be is served personally or 
by certified mail on the owner or his authorized agent or the 
person who entered into the contract with the contractor. 
    Approved June 7, 1983