Construction Lien: Duty Of Supplier To Verify Source Of Funds

In a case interpreting the New Jersey Construction Lien Law, a material supplier filed a construction lien when its customer/subcontractor became insolvent. The supplier had provided materials to the insolvent subcontractor for the project on which the lien had been filed and on open account for other unidentified projects. The Court found the supplier had an affirmative obligation to ascertain the identity of the project where the supplies had been provided. Failure to make this inquiry would preclude any action to enforce the construction lien. If you would like any further information, please contact John Petriello, Esq. at john@epgp-law.com.