Understanding Florida Construction Liens: Is the Lien Valid?

1. Florida construction lien law allows parties who perform construction work to record liens if they are not paid.
2. A lien can be deemed fraudulent if the lienor willfully exaggerates the claimed amount or includes work not performed or materials not furnished.
3. Proving a lien is fraudulent requires showing willful exaggeration, willful inclusion of false claims, or gross negligence.
4. The burden of proof for proving a lien is fraudulent lies with the party asserting the claim.
5. Intent and good or bad faith in recording the lien must be based on competent substantial evidence.
6. In a specific case (Gator Boring & Trenching, Inc. v. Westra Construction Corp.), a subcontractor recorded a lien for additional monies due to unforeseen site conditions, but the contract did not include provisions for such claims. – A dispute over the amount or method of compensation in a construction contract does not automatically make a lien claim fraudulent.
– The issue of differing site conditions was hotly contested and complex, creating a genuine dispute about the subcontractor’s right to recover on it.
– There was no proof that Gator Boring willfully exaggerated its lien, leading to a factual dispute about whether the lien was fraudulent.

https://www.jimersonfirm.com/blog/2017/01/florida-construction-fraudulent-liens/