Notice Requirements Under The Mechanics Lien Law of Delaware

By Marc Rapaport
A Contractor’s Notice Obligations Under the Delaware Mechanic’s Lien Law

Pursuant to Section 2705 of the Delaware Code, a contractor is required to provide written notice of all persons providing labor or material. Such notice must be provided within ten days of the owner’s demand.

Section 2705 provides: “The owner of any structure built, repaired or altered by any contractor or subcontractor may require such contractor or subcontractor from time to time to furnish and submit to him a complete and accurate list in writing of all persons who have furnished labor or material, or both, in connection therewith, and who may be entitled to avail themselves of the provisions of this chapter. Should any such contractor or subcontractor fail to furnish such list for 10 days after demand made therefor by such owner, he shall be entitled to receive no further payments from the owner until such list be furnished and shall not be entitled to avail himself of any of the provisions of this chapter.”

In the case of Rockland Builders, Inc. v. Endowment Management LLC, et al., (July 10, 2006), the Delaware Supreme Court determined that a contractor’s failure to provide a timely response to the owner’s demand does not permanently preclude the contractor from filing a lien on the property. The Court ruled that the language in the statute is not intended to forever bar the contractor from obtaining payment of amounts outstanding or a lien on the property, but rather stays the contractor’s ability to receive payment or obtain a lien in order to provide an incentive to the contractor to provide such list to the owner. While a contractor “has no right of action or lien” until such list is provided (i.e. it “is a prerequisite to the attachment of the lien”), once the contractor does provide the requested list, it can once again avail itself of the mechanic’s lien statute. The fact that the list is not provided “until after the lien claim is filed is not fatal, provided it is served before the expiration of the time for filing the claim.”

Marc A. Rapaport is an attorney in New York City. Read more about Mr. Rapaport and construction law at http://www.asaplegalforms.com and http://www.RapaportLaw.com

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