Opinion ID: 2351879
Heading Depth: 1
Heading Rank: 2

Heading: Mechanic's Lien 1992 Statutory Amendments

Text: Prior to 1992, the mechanic's lien statute enumerated ten mandatory requirements for a complaint or statement of claim: § 2712. Requirements of complaint or statement of claim. (b) The complaint and/or statement of claim shall set forth: (1) The name of the plaintiff or claimant; (2) The name of the owner or reputed owner of the structure; (3) The name of the contractor and whether the contract of the plaintiff-claimant was made with such owner or his agent or with such contractor; (4) The amount claimed to be due, the nature and kind of the labor done or materials furnished with a bill of particulars annexed, showing the kind and amount of labor done or materials furnished; (5) The time when the doing of the labor or the furnishing of the materials was commenced. (6) The time when the doing of the labor or the furnishing of the materials was finished; (7) The location of the structure with such description as may be sufficient to identify the same; (8) That the labor was done or the materials were furnished on the credit of such structure; (9) The amount of plaintiff's claim (which must be in excess of $25) and that neither this amount nor any part thereof has been paid to plaintiff; and (10) The amount which plaintiff claims to be due him on each structure. See 25 Del.C. § 2712(b) (1989). In 1992, Section 2712(b) was amended to add an additional requirement that the complaint or statement of claim set forth: (11) The time of recording of a first mortgage, or a conveyance in the nature of a first mortgage, upon such structure which is granted to secure an existing indebtedness or future advances provided at least 50% of the loan proceeds are used for the payment of labor or materials, or both, for such structure. 25 Del.C. § 2712(b) (Supp.1994); 68 Del. Laws c. 302, § 3 (1992). The record reflects that Section 2712(b)(11) was enacted as part of a bill which also amended 25 Del.C. § 2718(a), which now provides: (a) Any judgment obtained under a claim made in accordance with this subchapter shall become a lien upon such structure and upon the ground upon which the same is situated, erected or constructed and shall relate back to the day upon which the labor was begun or the furnishing of material was commenced, or the time immediately following the time of the recording of a first mortgage, or a conveyance in the nature of a first mortgage, upon such structure which is granted to secure an existing indebtedness or future advances provided at least 50% of the loan proceeds are used for the payment of labor or materials, or both, for such structure, whichever shall last occur. 25 Del.C. § 2718(a) (1989 & Supp.1994); 68 Del.Laws c. 302, § 2 (1992) (amended portion italicized). The synopsis to the 1992 legislation stated that the purpose of the bill was to provide that a first mortgage granted to secure a loan to pay the costs of labor or material for a structure shall have priority over a mechanics' lien on such structure regardless of when the work was first commenced or the materials were first furnished.