Can you get interest on construction liens? You can now—at 12%.
The Nebraska Supreme Court recently ruled that an LDM client could recover 12% interest on amounts owed under a construction lien. Here, LDM’s client was a material supplier on a construction project. The subcontractor failed to pay the material supplier and we filed a construction lien on its behalf. When the property owner and general contractor refused to pay the lien, LDM filed suit and asked the court to award our client both the amount owed for the materials supplied, but also 12% interest from the date of filing the construction lien. The lawsuit wound its way through the court system for three years, including a trip to the Nebraska Supreme Court. The Supreme Court recently ruled that LDM’s client should get all the money it was owed plus 12% interest from the date the construction lien was filed.
This situation was a bit different than a typical construction claim because our client did not have a contract with the owner or general contractor. It’s likely that if you are a contractor who has not been paid, you have a clause in your contract that allows you to recover interest. However, if you do not, you will get 12% from the date you file your construction lien.
If you have questions about how this recent opinion impacts your construction related company, feel free to give us a call or contact us here.