Nat’l Refrigeration, Inc. v. Capital Props., Inc.

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Plaintiff, acting as subcontractor to Builder, performed work on a property in the City of Providence owned by Owner and leased by Lessee. A dispute subsequently arose regarding payment, and Plaintiff sought to enforce a mechanics’ lien against Owner, Lessee, and Builder. After Owner and Lessee deposited a bond, with Liberty Mutual Insurance Company as surety, the superior court discharged the lien. Plaintiff subsequently amended its complaint to add Liberty as a defendant. Plaintiff then moved for partial summary judgment on the mechanics’ lien claim. The trial justice denied Plaintiff’s motion for summary judgment and entered final judgment in favor of Owner and Lessee. Plaintiff appealed, arguing that the superior court erred in entering judgment in favor of Owner and Lessee because they, as well as Builder and Liberty, were all directly liable to it for any rights it had under the lien statute. The Supreme Court affirmed, holding that the plain language of the mechanics’ lien statute mandates the dismissal and discharge of the lien once a bond, which replaces the property as security for the claim, is deposited with the registry of the court. View "Nat'l Refrigeration, Inc. v. Capital Props., Inc." on Justia Law