Florida Decision Protects Lien Rights For Contractors

Law360, New York (October 22, 2014, 11:04 AM EDT) -- A recent appellate court decision reinforces the lien rights of Florida's contractors, subcontractors and suppliers by limiting the ability of developers to employ creative means to avoid those liens. Citing the legal maxim that "one cannot do indirectly what he or she is not permitted to do directly," the state's Third District Court of Appeal reversed summary judgment in favor of a group of developers who sought to extinguish construction liens by setting up a new entity, buying back their mortgages from the lender, then foreclosing upon those mortgages and the liens....

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