August 18, 2019

Douglas Griess: New Legislation Passed into Law Regarding Mechanic’s Liens

In Weize Co., LLC v. Colorado Regional Construction, Inc., No. 09CA1369, the Colorado Court of Appeals held that a plumber’s claim to foreclose on a mechanic’s lien had to be dismissed because of the plumber’s failure to file a lis pendens or notice of commencement of action on the title of the property.  The defendant did provide a lien release bond, and the liens were released.  However, while the supplier to the vendor was apparently successful in establishing violation of the Trust Fund Statute, C.R.S. 38-22-127, it appears that the dismissal of the foreclosure action prevented the plaintiffs from being successful in their claims for damages against the bond because of the lack of filing a lis pendens.

In the 2011 session of the Colorado Legislature, SB 11-264 was introduced to clarify the requirement of a lis pendens.  Specifically, the bill modified the statutes to clarify that when a release bond is approved by the court, the lis pendens is to be released along with the mechanic’s lien, and a claim on the bond is to be substituted for the foreclosure action.

The bill was passed by the Legislature in June of 2011.  Accordingly, going forward, if a release bond is approved by the court, its effect is that no lis pendens is required, and if already recorded, must be released, along with the mechanic’s lien on the property.

Douglas Griess opened The Griess Law Firm, LLC in 2010.  He represents various individuals and businesses in business matters, non-profit matters, transactions, civil and commercial disputes, lease negotiations, contracts, and intellectual property issues. He blogs on his law firm’s site, where this post originally appeared on July 13, 2011.

Governor Hickenlooper Signs Dozens More Bills into Law

At the end of last week, forty-one more bills reached Governor John Hickenlooper’s desk and were signed into law. The bills were the twenty-fifth group to emerge from the 2011 General Assembly.

  • HB 11-1014
    • Sponsored by Rep. DelGrosso and Sens. Roberts and Hudak. Concerning the Repeal of  Limiting Trigger Associated with the Child Care Contribution Income Tax Credit.
  • HB 11-1093
    • Sponsored by Rep. Bradford and Sen. Cadman. Concerning the Payment of Specific Ownership Tax on Special Mobile Machinery.
  • HB 11-1105
    • Sponsored by Rep. Acree and Sen. White. Concerning Assaults Against Medical Care Providers.
  • HB 11-1166
    • Sponsored by Rep. Murray and Sen. Aguilar. Concerning the Creation of a Type 1 Diabetes Special License Plate.
  • HB 11-1242
    • Sponsored by Rep. Ferrandino and Sen. Nicholson. Concerning the Provision of Integrated Health Care Services Pursuant to the Colorado Medical Assistance Program.
  • HB 11-1267
    • Sponsored by Rep. McCann and Sen. Mitchell. Concerning an Expansion of the Circumstances in which a Court May Order Further Restrictions as Conditions of a Protection Order Against a Defendant.
  • HB 11-1297
    • Sponsored by Rep. Murray and Sen. Cadman. Concerning the Statewide Internet Portal Authority.
  • HB 11-1307
    • Sponsored by Rep. Becker and Sen. Steadman. Concerning Recovery Audits.
  • HB 11-1324
    • Sponsored by Rep. Acree and Sen. Brophy. Concerning the Application of Provisions Governing the Financial Obligations of a Residential Nonprofit Corporation Upon Alteration of the Membership Status of a Member.
  • HB 11-1043
    • Sponsored by Rep. Massey and Sens. Steadman and Spence. Concerning Medical Marijuana, and Making an Appropriation Therefor.
  • HB 11-1268
    • Sponsored by Rep. Levy and Sen. Nicholson. Concerning Penalties for Traffic Offenses Involving Alcohol and Drugs.
  • HB 11-1303
    • Sponsored by Rep. B. Gardner and Sen. Brophy. Concerning Non-Substantive Revisions of Statutes in the Colorado Revised Statutes, and Amending or Repealing Obsolete, Inconsistent, and Conflicting Provisions of Law.
  • HB 11-1157
    • Sponsored by Rep. Casso and Sen. White. Concerning the Exemption from the Heavy-Duty Diesel Inspection Program of Heavy-Duty Diesel Vehicles Based Outside the Program Area as Part of a Fleet Registered in the Program Area.
  • HB 11-1298
    • Sponsored by Reps. Tyler and Vaad and Sen. Spence. Concerning the Creation of a Special License Plate for Craig Hospital.
  • HB 11-1072
    • Sponsored by Rep. McNulty and Sen. Morse. Concerning the Responsibilities of a Designated Representative of the Proponents of an Initiative Petition.
  • HB 11-1241
    • Sponsored by Rep. DelGrosso and Sen. Lundberg. Concerning the Circumstances in which a Nonprofit Housing Provider that Sells Low-Cost Housing to Low-Income Applicants Who Assist in the Construction of the Housing is Entitled to the Property Tax Exemption for Property Used Strictly for Charitable Purposes.
  • HB 11-1081
    • Sponsored by Rep. Brown and Sen. Schwartz. Concerning the Inclusion of Liquified Petroleum Gas Conversion Vehicles in the List of Qualified Vehicles Available for Efficient Motor Vehicle Incentives.
  • HB 11-1080
    • Sponsored by Rep. Todd and Sen. S. King. Concerning the Address Confidentiality Program.
  • HB 11-1010
    • Sponsored by Rep. Acree and Sen. Brophy. Concerning the Incidental Use of Property Owned by a Fraternal Organization or Veterans’ Organization that is Exempt from Property Tax.
  • HB 11-1250
    • Sponsored by Rep. Acree and Sen. Renfroe. Concerning a Prohibition on Ingestible Medical Marijuana-Infused Products.
  • HB 11-1323
    • Sponsored by Rep. Massey and Sen. Boyd. Concerning an Exemption from State Licensure Requirements for a Community Clinic that is a Rural Health Clinic.
  • HB 11-1002
    • Sponsored by Rep. Nikkel and Sen. Kopp. Concerning the Creation of an On-Line Database for the Department of Transportation’s Financial Information.
  • SB 11-180
    • Sponsored by Sen. Tochtrop and Rep. Looper. Concerning Authority for Taxicabs to Pick Up Passengers Outside Their Assigned Geographic Areas.
  • SB 11-085
    • Sponsored by Sen. B. Shaffer and Rep. McCann. Concerning Increasing the Enforcement of Prohibitions Against Certain Prostitution-Related Offenses, and Authorizing the Creation of a Program for Certain First-Time Offenders.
  • SB 11-134
    • Sponsored by Sen. Kopp and Reps. Murray and Vigil. Concerning the Addition of Certain Drugs to the Statutory List of Schedule 1 Controlled Substances.
  • SB 11-240
    • Sponsored by Sen. Hudak and Rep. Murray. Concerning the Implementation of Sunset Review of the Regulation of Private Occupational Schools, and Requiring the Department of Regulatory Agencies to Review the Functions of the Private Occupational School Division and the Private Occupational School Board and Scheduling a Future Repeal of the Laws Related to Regulation of Private Occupational Schools.
  • SB 11-109
    • Sponsored by Sen. B. Shaffer and Rep. Solano. Concerning the Creation of a Voluntary Contribution Designation Benefiting the Public Education Fund to Appear on the State Individual Income Tax Return Forms.
  • SB 11-206
    • Sponsored by Sen. Boyd and Rep. Bradford. Concerning the Exemption of Certain Noncommercial Mortgage-Related Activities from the “Mortgage Loan Originator Licensing and Mortgage Company Registration Act.”
  • SB 11-256
    • Sponsored by Sens. Guzman and S. King and Reps. Ferrandino and J. Kerr. Concerning Graffiti.
  • SB 11-105
    • Sponsored by Sen. Guzman and Rep. Levy. Concerning In-Home Support Services, Extending their Duration.
  • SB 11-263
    • Sponsored by Sen. Tochtrop and Rep. Becker. Concerning Clarification of the State Sales Tax Exemption for Sales of Medical Products.
  • SB 11-051
    • Sponsored by Sen. Giron and Rep. Swerdfeger. Concerning an Interception of a Person’s Winnings for the Purpose of Paying an Unpaid Debt Due to the State.
  • SB 11-088
    • Sponsored by Sens. Carroll and Lundberg and Rep. Acree. Concerning the Regulation of Direct-Entry Midwives, and Implementing the Sunset Review Recommendations of the Department of Regulatory Agencies.
  • SB 11-193
    • Sponsored by Sen. Aguilar and Reps. B. Gardner and J. Kerr. Concerning the Disclosure of Employment Information to an Employer Regarding a Person Employed to Work with a Person with a Developmental Disability.
  • SB 11-243
    • Sponsored by Sen. Guzman and Rep. Pabon. Concerning the Repeal of the Civil Penalty for Document Fraud.
  • SB 11-264
    • Sponsored by Sen. Newell and Reps. B. Gardner and Lee. Concerning a Clarification of State Law Governing the Circumstances under which a Notice of Lis Pendens Must Be Recorded in Connection with the Filing of a Debt Security Instrument as a Substitute for the Filing of Certain Liens.
  • SB 11-272
    • Sponsored by Sens. Hodge and Aguilar and Reps. Summers and Fields. Concerning the Voluntary Contribution Designation Benefiting the Adult Stem Cells Cure Fund that Appears on the State Individual Income Tax Return Forms.
  • SB 11-187
    • Sponsored by Sen. Newell and Rep. Fields. Concerning the Continuation of the Regulation of Mental Health Professionals, and Continuing the State Boards of Psychologist Examiners, Social Work Examiners, Marriage and Family Therapist Examiners, and Licensed Professional Counselor Examiners.
  • SB 11-254
    • Sponsored by Sen. Steadman and Rep. Pace. Statutory Changes to Improve Practices for Persons Under Community Supervision.
  • SB 11-089
    • Sponsored by Sen. Jahn and Rep. Beezley. Concerning the Continuation of the Authority of the Executive Director of the Department of Revenue to Issue Written Responses Upon the Request of a Taxpayer.
  • SB 11-108
    • Sponsored by Sen. Jahn and Rep. Szabo. Concerning the Repeal of the “Identity Theft and Financial Fraud Deterrence Act.”

For a complete list of Governor Hickenlooper’s 2011 legislation decisions click here.

SB 11-264: Clarifying the Law Governing when a Notice of Lis Pendens Must Be Recorded

On April 26, 2011, Sen. Linda Newell, D-Littleton, and Reps. Bob Gardner, R-Colorado Springs, and Pete Lee, D-Colorado Springs, introduced SB 11-264 – Concerning a clarification of state law governing the circumstances under which a notice of lis pendens must be recorded in connection with the filing of a debt security instrument as a substitute for the filing of certain liens. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Upon the filing of a bond or undertaking as a substitute for the filing of a mechanics’ or real estate broker’s lien, the bill provides that:

  • The lien, and any notice of lis pendens relating to the lien or notice of the commencement of any action relating to a lien filed against the real property, is immediately discharged and released in full;
  • The real property described in the bond or undertaking is to be forever released from the lien and from any notice of lis pendens or notice of the commencement of any action relating to the lien and from any action brought to foreclose the lien; and
  • No notice of lis pendens or notice of the commencement of any action relating to the lien or any action for the enforcement of the lien shall thereafter be recorded against the property.

The bill requires the clerk of the district court to show that the property has been forever released from the lien and from any notice of lis pendens or notice of the commencement of any action relating to such lien in the certificate of release issued by the clerk.

The bill makes an exception for its provisions from statutory requirements specifying when a recorded notice of lis pendens shall remain in effect.

The bill is sponsored by the CBA through the Real Estate Section. Assigned to the Judiciary Committee; the bill is scheduled for committee review on Monday, May 2 at 1:30 p.m.

Since this summary, the bill has passed its Second Reading with Amendments in the Senate.

Summaries of other featured bills can be found here.