VII. Alabama Lien Law

Alabama Construction Law

Materialmen, not having a direct contract with the owner but who are instead suppliers to a general contractor or a subcontractor, must serve notice on the owner in order to obtain a “full price lien”. The Alabama Code Section 35-11-210 (1975) provides an example form. However, the notice incorporated into the statute is inconsistent with the express provisions of the statute. The statute clearly states that the notice must show that “certain specified material” will be furnished at “certain specified prices.” Nevertheless, some court s have held that the statutory form is sufficient. Avondale Lumber Co. v. Hudson , 106 So. 803 (Ala. 1926); Tisdale v. Alabama & Georgia Lumber Co. , 31 So. 29 (Ala. 1902). More recently, Alabama courts have begun a shift toward enforcing the specific requirements of the statute. Kilgore v. First Assembly of God Church, Inc. , 477 So.2d 300 at 302 (Ala. 1985). In Kilgore, the court found a preliminary notice insufficient, in part, because it failed to list “certain specified prices” as required by Ala. Code § 35-11-210. In 1991, the Alabama Supreme Court continued its shift toward enforcing the literal provisions of the statute by stating that

[the Contract] used the form suggested by the statute, but did not specify prices as required by the text of 35-11-210. However, we can decide this case without deciding the particular issue of whether the language of the text or the language of the form controls. Nevertheless, we fell it will be helpful to the bench and bar, as well as suppliers of materials and labor, to note that a mechanic’s lien for the full price of materials or labor supplied arises from an expressed or implied contract between the supplier and the owner to supplied purchase material or labor…If the notice is to be deemed a contract purchase between the owner and the supplier, it must contain all of the terms to which the supplier, it must contain all of the terms to which the supplier wishes to hold the owner; i.e., it should contain a statement of the material to be furnished, the price thereof, and any credit terms that may be included in the contract between the supplier and the purchaser of materials or labor-the general contractor or subcontractor.

Notice of Intent.

Verified Statement of Lien.

Unpaid Balance Liens.

Preliminary Notice.

Notice Of Intent.

Verified Statement of Lien.

  1. City or Town. When the land at issue is located within a city or town, the lien extends to all the right, title and interest of the owner and “to the extent any of the entire lot or parcel of land in a city or town…” Ala. Code § 35-11-210. As mentioned above, the statute specifically provides that with regard to such property, “a description by house number, name of street, and name of city or town” is sufficient. Ala. Code § 35-11-213.
  2. Not in City or Town. Property located outside the city or town may be liened not only with respect to the building improvements and the land on which such is situated, but also to “one acre in addition to the land upon which the building or improvement is situated…” Ala. Code § 35-11-210.
  3. Statement of Lien. A verifying statement of lien must be filed in the office of the Judge of Probate of the county where the subject property is located. Ala. Code § 35-11-213. When the property is located in more than one county, the verified statement must be filed in each county where the land is located.
  4. Timing. Ala. Code § 35-11-215 sets forth various time periods for different lienors to file a verified statement depending on the status of each lienor.
  5. Laborers. Must file the verified statement within 30 days of the last labor provided on the project. Ala. Code § 35-11-215 (1975).
  6. Original Contractors. Original contractors must file the verified statement of lien within six months after the last of item of work has been furnished. Ala. Code § 35-11-215 (1975). A “full price” lien claimant is considered an original contractor within this provision and therefore has six months from the furnishing of the last item of work or material within which to file its verified statement. Southern Sash of Huntsville, Inc. v. Jean , 235 So.2d 842 (Ala. 1970).
  7. Every Other Person. Every other lien claimant must file its verified statement of lien within four (4) months after the last item of work or material has been performed or furnished. Ala. Code § 35-11-215 (1975).