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ENGROSSED SUBSTITUTE HOUSE BILL 1708
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State of Washington62nd Legislature2011 Regular Session

By House Labor & Workforce Development (originally sponsored by Representative Moeller)

READ FIRST TIME 02/17/11.   



     AN ACT Relating to mechanics' and materialmen's claims of liens; amending RCW 60.04.091, 60.04.171, and 60.04.900; and adding a new section to chapter 60.04 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 60.04 RCW to read as follows:
     (1) The legislature finds that persons furnishing labor, professional services, materials, or equipment for the improvement of real property routinely rely upon the enforcement of their lien rights to secure payment for their work. This chapter is intended to provide a simple, reliable, and uniform mechanism for preservation of lien rights and pursuit of lien claims such that technical errors may be corrected by retroactive amendment in the absence of prejudice to others, and technical objections will not override resolution of competing interests on their merits. Yet controversy has arisen at times as to the intent of certain provisions of this chapter.
     (2) The legislature therefore intends to clarify that: (a) The use of the "safe harbor" form in RCW 60.04.091 is sufficient to state a lien claim for all claims and claimants; (b) the full array of civil procedures generally available to the courts in regular civil actions are also available to the courts in lien foreclosure actions, including procedures that allow technical defects to be corrected so that lien claims are decided on the merits; and (c) all aspects of designated statutes are to be liberally construed to protect the interests of lien claimants, including all requirements for entitlement to lien, drafting and recording claims of lien, and pursuing foreclosures of liens.

Sec. 2   RCW 60.04.091 and 1992 c 126 s 7 are each amended to read as follows:
     Every person claiming a lien under RCW 60.04.021 shall file for recording, in the county where the subject property is located, a notice of claim of lien not later than ninety days after the person has ceased to furnish labor, professional services, materials, or equipment or the last date on which employee benefit contributions were due. The notice of claim of lien:
     (1) Shall state in substance and effect:
     (a) The name, phone number, and address of the claimant;
     (b) The first and last date on which the labor, professional services, materials, or equipment was furnished or employee benefit contributions were due;
     (c) The name of the person indebted to the claimant;
     (d) The street address, legal description, or other description reasonably calculated to identify, for a person familiar with the area, the location of the real property to be charged with the lien;
     (e) The name of the owner or reputed owner of the property, if known, and, if not known, that fact shall be stated; and
     (f) The principal amount for which the lien is claimed.
     (2) Shall be signed by the claimant or some person authorized to act on his or her behalf who shall affirmatively state they have read the notice of claim of lien and believe the notice of claim of lien to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause, and is not clearly excessive under penalty of perjury((, and shall be acknowledged pursuant to chapter 64.08 RCW)) before a notary public. If the lien has been assigned, the name of the assignee shall be stated. If the claim of lien is signed by a corporate representative, attorney, lien filing agent, or other individual authorized to act on the claimant's behalf, the claim of lien shall indicate the individual's capacity to sign on behalf of the claimant. Where an action to foreclose the lien has been commenced such notice of claim of lien may be amended as pleadings may be by order of the court insofar as the interests of third parties are not adversely affected by such amendment. A claim of lien substantially in the following form shall be sufficient:


     CLAIM OF LIEN


. . . . . ., claimant, vs . . . . . ., name of person indebted to claimant:


Notice is hereby given that the ((person)) claimant named below ((claims)) asserts a lien pursuant to chapter ((64.04)) 60.04 RCW. In support of this lien the following information is submitted:


     1. NAME OF LIEN CLAIMANT: . . . . . . . . . . . .

      TELEPHONE NUMBER: . . . . . . . . . . . .

      ADDRESS: . . . . . . . . . . . .


     2. DATE ON WHICH THE CLAIMANT BEGAN TO PERFORM LABOR, PROVIDE PROFESSIONAL SERVICES, SUPPLY MATERIAL OR EQUIPMENT OR THE DATE ON WHICH EMPLOYEE BENEFIT CONTRIBUTIONS BECAME DUE: . . . . . . . . . . . .


     3. NAME OF PERSON INDEBTED TO THE CLAIMANT:

. . . . . . . . . . . .


     4. DESCRIPTION OF THE PROPERTY AGAINST WHICH A LIEN IS CLAIMED (Street address, legal description or other information that will reasonably describe the property): . . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . .


     5. NAME OF THE OWNER OR REPUTED OWNER (If not known state "unknown"): . . . . . . . . . . . .


     6. THE LAST DATE ON WHICH LABOR WAS PERFORMED; PROFESSIONAL SERVICES WERE FURNISHED; CONTRIBUTIONS TO AN EMPLOYEE BENEFIT PLAN WERE DUE; OR MATERIAL, OR EQUIPMENT WAS FURNISHED: . . . . . . . . . . . .

. . . . . . . . . . . .


     7. PRINCIPAL AMOUNT FOR WHICH THE LIEN IS CLAIMED IS: . . . . . . . . . . . .


     8. IF THE CLAIMANT IS THE ASSIGNEE OF THIS CLAIM SO STATE HERE: . . . . . . . . . . . .

. . . . . . . . . . . .


     9. IF THE INDIVIDUAL SIGNING THIS CLAIM OF LIEN IS AN OFFICER OR EMPLOYEE OF THE CLAIMANT, OR AN ATTORNEY, REPRESENTATIVE OF A LIEN FILING SERVICE, OR OTHER INDIVIDUAL AUTHORIZED TO ACT ON THE CLAIMANT'S BEHALF, STATE THE NAME AND REPRESENTATIVE CAPACITY OF THE INDIVIDUAL SIGNING THIS CLAIM OF LIEN:


          NAME:. . . . . . . . . . . . . .

     REPRESENTATIVE CAPACITY: (officer or employee of claimant, attorney, agent, etc.) . . . . . . . . . . . . . .


. . . . . . . . . . . . , Claimant
. . . . . . . . . . . .
. . . . . . . . . . . .
(Phone number, address, city, and
state of claimant)


STATE OF WASHINGTON, COUNTY OF
. . . . . . . ., ss.
. . . . . . . ., being sworn, says: I am the claimant (or ((attorney of the claimant)) an officer or employee of the claimant, or an attorney, representative of a lien filing service, or other individual authorized to act on the claimant's behalf, or administrator, representative, or agent of the trustees of an employee benefit plan) above named; I have read or heard the foregoing claim, read and know the contents thereof, and believe the same to be true and correct and that the claim of lien is not frivolous and is made with reasonable cause, and is not clearly excessive under penalty of perjury.

       . . . . . . . . . . . . . . . . . . . .

     Subscribed and sworn to before me this . . . . day of . . . . . .

       . . . . . . . . . . . . . . . . . . . .

     The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day period stated. The lien claimant shall give a copy of the claim of lien to the owner or reputed owner by mailing it by certified or registered mail or by personal service within fourteen days of the time the claim of lien is filed for recording. Failure to do so results in a forfeiture of any right the claimant may have to attorneys' fees and costs against the owner under RCW 60.04.181.

Sec. 3   RCW 60.04.171 and 1992 c 126 s 11 are each amended to read as follows:
     The lien provided by this chapter, for which claims of lien have been recorded, may be foreclosed and enforced by a civil action in the court having jurisdiction in the manner prescribed for the judicial foreclosure of a mortgage, and the court rules ordinarily applicable to civil actions shall apply to that action. The court shall have the power to order the sale of the property. In any action brought to foreclose a lien, the owner shall be joined as a party. The interest in the real property of any person who, prior to the commencement of the action, has a recorded interest in the property, or any part thereof, shall not be foreclosed or affected unless they are joined as a party.
     A person shall not begin an action to foreclose a lien upon any property while a prior action begun to foreclose another lien on the same property is pending, but if not made a party plaintiff or defendant to the prior action, he or she may apply to the court to be joined as a party thereto, and his or her lien may be foreclosed in the same action. The filing of such application shall toll the running of the period of limitation established by RCW 60.04.141 until disposition of the application or other time set by the court. The court shall grant the application for joinder unless to do so would create an undue delay or cause hardship which cannot be cured by the imposition of costs or other conditions as the court deems just. If a lien foreclosure action is filed during the pendency of another such action, the court may, on its own motion or the motion of any party, consolidate actions upon such terms and conditions as the court deems just, unless to do so would create an undue delay or cause hardship which cannot be cured by the imposition of costs or other conditions. If consolidation of actions is not permissible under this section, the lien foreclosure action filed during the pendency of another such action shall not be dismissed if the filing was the result of mistake, inadvertence, surprise, excusable neglect, or irregularity. An action to foreclose a lien shall not be dismissed at the instance of a plaintiff therein to the prejudice of another party to the suit who claims a lien.

Sec. 4   RCW 60.04.900 and 1991 c 281 s 25 are each amended to read as follows:
     All aspects of RCW 19.27.095, 60.04.230, and 60.04.011 through 60.04.226 and 60.04.261 are to be liberally construed to ((provide security for all parties intended to be protected by their provisions)) protect the interests of permit applicants and of persons furnishing labor, professional services, materials, or equipment for the improvement of real property.

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