Partial Satisfaction of Lien Claim by Corporation
Note: This summary is not intended
to be an all inclusive discussion of Wisconsin construction or mechanic's
lien laws, but does include basic provisions.
What is a construction or mechanic's lien?
Every State permits
a person who supplies labor or materials for a construction project to
claim a lien against the improved property. While some states differ
in their definition of improvements and some states limit lien claims to
buildings or structures, most permit the filing of a document with the
local court that puts parties interested in the property on notice that
the party asserting the lien has a claim. States differ widely in
the method and time within which a party may act on their lien. Also
varying widely are the requirements of written notices between property
owners, contractors, subcontractors and laborers, and in some cases lending
institutions. As a general rule, these statutes serve to prevent
unpleasant surprises by compelling parties who wish to assert their legal
rights to put all parties who might be interested in the property on notice
of a claim or the possibility of a claim. This by no means constitutes
a complete discussion of construction lien law and should not be interpreted
as such. Parties seeking to know more about construction laws in
their State should always consult their State statutes directly.
Who can claim a lien in this State?
Every person who performs
any work or procures its performance or furnishes any labor or materials
or plans or specifications for the improvement of land, and who complies
with s. 779.02, shall have a lien therefor on all interests in the land
belonging to its owners.
How long does a party have to claim a lien?
No lien shall exist
and no action to enforce a lien shall be maintained unless within 6 months
from the date the lien claimant furnished the last labor or materials, a
claim for the lien is filed in the office of the clerk of circuit court
of the county in which the lands affected by the lien lie, and unless within
2 years from the date of filing a claim for lien, an action is brought and
summons and complaint filed.
Does this State require or provide for a notice
from subcontractors and laborers to property owners?
Yes. No lien claim may
be filed or action brought thereon unless, at least 30 days before timely
filing of the lien claim, the lien claimant serves on the owner, personally
or by registered mail with return receipt requested, a written notice of
intent to file a lien claim. The notice is required to be given whether
or not the claimant has been required to give and has given a previous notice
pursuant to s. 779.02. Such notice shall briefly describe the nature
of the claim, its amount and the land and improvement to which it relates.
Every prime contractor
who enters into a contract with the owner for a work of improvement on
the owner's land and who has contracted or will contract with any subcontractors
or materialmen to provide labor or materials for the work of improvement
shall include in any written contract with the owner the notice required
by this paragraph, and shall provide the owner with a copy of the written
contract. If no written contract for the work of improvement is entered
into, the notice shall be prepared separately and served personally or
by registered mail on the owner or authorized agent within 10 days after
the first labor or materials are furnished for the improvement by or pursuant
to the authority of the prime contractor. The notice warns of the
lien rights of furnishers of labor and materials.
Every person other than
a prime contractor who furnishes labor or materials for an improvement
shall have the lien and remedy under this subchapter only if within 60
days after furnishing the first labor or materials the person gives notice
in writing, in 2 signed copies, to the owner either by personal service
on the owner or authorized agent or by registered mail with return receipt
requested to the owner or authorized agent at the last-known post-office
address.
Does this State require a notice prior to starting
work, or after work has been completed?
No. Wisconsin
law does not provide for a notice of commencement or notice of completion
as required in some other States.
Does this State permit a person with an interest
in property to deny responsibility for improvements?
No. Wisconsin
law does not have a provision allowing a property owner to deny responsibility
for improvements.
Is a notice attesting to the satisfaction of a
lien provided for or required?
Every lien claimant, or the
attorney who executed and filed a claim for lien on the claimant's behalf,
who has received satisfaction or tender of the claim with the costs of
any action brought on the claim shall, at the request of any person interested
in the premises affected and on payment of the costs of satisfying the
same, execute and deliver the necessary satisfaction to the interested
person. On filing the satisfaction with the clerk of circuit court,
the clerk of circuit court shall enter satisfaction of the claim on the
judgment and lien docket. Failure to execute and deliver the satisfaction
or to satisfy the lien on the judgment and lien docket shall render the
person so refusing liable to pay to the person requiring the satisfaction
a sum equal to one-half of the sum claimed in the claim for lien.
