Greetings!
Since our last newsletter Martin & Martin Law has achieved some significant results for our clients including:
- 1.5 million dollar resolution of a construction case for a contractor;
- 2.0 million dollar resolution of a real estate sale case;
- The Supreme Court of Texas has called for briefing on our Petition for Writ of Mandamus to clarify arbitration law;
- A very favorable defense result in a construction case;
- We defended a slip and fall case involving a serious broken leg and ankle and other claimed injuries wherein the demand was $475,000. We were able to settle all claims for $9,000;
- A favorable resolution of an Employment Discrimination and harassment matter; and
- Resolution of numerous lien claims and collection matters for clients large and small.
We are grateful to our clients for their continued confidence and support. Within this email newsletter, we are forwarding what we hope will be helpful articles in your business or practice. Please feel free to forward them to anyone who might find this information beneficial. If you have a particular legal issue for which you need assistance or have any questions about the information provided in this newsletter, please feel free to email or call us. Sincerely, Peter Martin |
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House Bill 1456: Solutions to Three Common Lien Waiver Issues
House Bill 1456 proposes standardized lien release and waiver forms required for use in connection with progress payments, final payments, and payment bond claims on construction projects.
Three issues commonly arise in the context of lien waivers and releases:
- To receive the funds, the signor must swear that he has paid his suppliers, when in fact he cannot do so until he received the funds;
- Signor must release his lien rights in exchange for a check, which has not cleared the bank;
- Uninformed signors do not realize that they are waiving their lien rights.
The Proposed Solutions are:
- The new form provides that signor has paid or, upon receipt of the funds, will promptly pay its materialmen and subcontractors.
- The document becomes effective only when the check has been properly endorsed and paid by the bank.
- The following notice is required in large boldface type at the top of any unconditional waiver and release:
NOTICE:
THIS DOCUMENT WAIVES RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. THIS DOCUMENT MAY BE ENFORCEABLE AGAINST YOU IF YOU SIGN IT, EVEN IF YOU HAVE NOT BEEN PAID. IF YOU HAVE NOT BEEN PAID, USE A CONDITIONAL RELEASE FORM.
Although the bill permits "substantial compliance," it effectively mandates use of these specific forms, with narrow exceptions.
A link to House Bill 1456 is provided below. It is currently pending in House committee.
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