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September 2009

Notices of Contract and Notices of Subcontract: What They Are, How They Protect Your Rights, And How They May Be Attacked

Having a basic working knowledge of lien law is imperative to preserving important legal rights.

−Notices of Contract and Notices of Subcontract: What They Are, How They Protect Your Rights, And How They May Be Attacked

A lawsuit or mechanic’s lien arises from many, if not most, construction projects.  Situations arise where subcontractors or materialmen are not paid, subcontractors are kicked off projects, disputes arise with respect to quality of workmanship or materials.  Disputes that occur on the project may call into question your reputation or financial strength.  Understanding key provisions of North Carolina lien law will protect your legal rights and reduce the amount of …Read More

Learn to Beat Out The Deadbeats

There are several often overlooked statutes providing effective tools for collecting otherwise unenforceable judgments.

−Learn to Beat Out The Deadbeats

More often than necessary, civil judgments are not satisfied, and the corporate judgment debtor is not forced to pay.  However, there are several often overlooked statutes providing effective tools for collecting otherwise unenforceable judgments. State codes of statutes often provide assistance to the creditor who is unable to locate other assets of the debtor and must resort to collecting the accounts receivable of the corporate judgment debtor.  The code of …Read More

Reclamation: Cutting Cost And Reducing Cost

The Seller must ACT IMMEDIATELY upon learning of the customer's insolvency or bankruptcy.

−Reclamation: Cutting Cost And Reducing Cost

Too often a credit manager learns that just after a delivery of merchandise a customer has filed or is about to file bankruptcy.  The Seller faces loss of both the goods and payment. The UCC provides a powerful but seldom used remedy.  UCC 2-702(2) provides that where the Seller discovers that a customer received goods on credit while insolvent, the Seller may “reclaim” (recover) the goods upon demand made within …Read More

Intent Overrides General Guaranty Law

Creditors should learn courts may reject a guaranty contract is there are conditions of liability that are not met.

−Intent Overrides General Guaranty Law

In Fagen’s of North Carolina, Inc. v. Rocky River Real Estate Company, et al., 451 S.E. 2d 872 (N.C. App. 1995), the Court of Appeals of North Carolina held that it is the specific terms of a contract and the intent of the parties involved, not general statements of law, that control any agreement.  In Fagen, the customer failed to pay the creditor $19,425.68 for building supplies.  The creditor in turn sued …Read More

Protection For Payment On Federal Projects: Precision Required For Protection

A successful Miller Act claim may hinge entirely on the accuracy of the record-keeping and the attention to detail in the initial demand letter.

−Protection For Payment On Federal Projects: Precision Required For Protection

North Carolina is blessed with numerous federally-owned facilities.  These facilities are frequently the sites for construction projects, some of substantial proportion.  Many subcontractors and material suppliers find themselves working on projects located in or on federal facilities and know the projects are exempt from state law lien protection but are protected by payment bonds. WHEN ARE BONDS REQUIRED Congress passed the statute commonly known as “The Miller Act” to protect …Read More

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