Title: Case Study: Construction Lien Dispute Resolution

Introduction: In this case study assignment, we will examine a construction lien dispute

involving multiple parties, including a property owner, a general contractor, subcontractors,

and suppliers. The case study will explore the background of the dispute, the legal issues

involved, and potential strategies for resolving the conflict.

Background: ABC Construction is a general contracting company hired by Sarah, the

owner of a residential property, to oversee a major renovation project. ABC Construction

enters into contracts with several subcontractors and suppliers to provide labor and

materials for the project. As the project progresses, disputes arise between ABC

Construction and some subcontractors over payment delays and quality of work issues.

Subcontractor Dispute: One of the subcontractors, XYZ Plumbing, claims that ABC

Construction has not paid them for plumbing work completed on the project. XYZ Plumbing

files a construction lien against Sarah's property to secure payment for their services.

Sarah, unaware of the payment dispute between ABC Construction and XYZ Plumbing, is

surprised by the lien and demands that it be resolved immediately.

Legal Issues:

Validity of Construction Lien: The first legal issue involves determining the validity of the

construction lien filed by XYZ Plumbing against Sarah's property. The lien's validity depends

on compliance with statutory requirements, including notice requirements, filing

deadlines, and the subcontractor's right to payment.

Payment Disputes: The second legal issue concerns the underlying payment disputes

between ABC Construction and subcontractors like XYZ Plumbing. Disputes over payment

delays, work quality, and contract breaches may lead to construction liens and legal

actions.

Dispute Resolution: The third legal issue involves exploring options for resolving the

construction lien dispute and payment disputes between ABC Construction and

subcontractors. Potential resolution strategies include negotiation, mediation, arbitration,

or litigation.

Case Study Assignment Tasks:

$1)$ Analyze the validity of the construction lien filed by XYZ Plumbing against Sarah's

property, considering statutory requirements and subcontractor rights.

$2)$ Evaluate the underlying payment disputes between ABC Construction and

subcontractors like XYZ Plumbing, identifying issues related to payment delays,

work quality, and contract breaches.

$3)$ Develop a dispute resolution strategy to address the construction lien dispute and

payment disputes, considering negotiation, mediation, arbitration, or litigation

options.

$4)$ Recommend specific actions and steps to resolve the dispute effectively and

minimize potential legal risks for all parties involved.

$5)$ Provide legal and practical recommendations for preventing similar disputes in

future construction projects, including contract management best practices,

payment scheduling, and dispute resolution mechanisms.