One common question in Florida construction is whether a supplier to a supplier can claim a lien. This situation comes up in scenarios like the following:
Hypothetical: A manufacturer sells its materials to a distributor. The distributor then sells the materials to a general contractor, who uses them to improve an owner’s property. The property owner goes out of business during the project. The contractor is unable to pay the distributor, and the distributor is unable to pay the manufacturer. All three businesses want to claim a lien on the property.
Manufacturer –> Distributor –> Contractor –> Owner
In this scenario, the distributor and contractor will be able to enforce their lien rights on the property, but the manufacturer will not.
This result seems unfair; however, it is based on the clear language of Florida Statute Chapter 713, which is intended to protect owners from remote claims of parties they are not aware of.
Specifically, Florida Statute 713.01 states that “Lienor” means the following persons:
(a) A contractor;
(b) A subcontractor;
(c) A sub-subcontractor;
(d) A laborer;
(e) A materialman who contracts with the owner, a contractor, a subcontractor, or a sub-subcontractor; or
f) A professional lienor under s. 713.03;
…. “No other person may have a lien under this part.”
A supplier to a supplier is a “materialman” who does not contract with the owner, contractor, subcontractor, or sub-subcontractor. Therefore, they do not fit within the definition of a lienor, and cannot claim a lien.
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READY LEGAL 