Shale Gives Rise to Closer Look at Mechanic's Lien Laws

, The Legal Intelligencer


Consider that in order to secure payment, a contractor may file a mechanic's lien on real property on which it performed work. The lien places an encumbrance against the owner's real property for the unpaid balance of the contractor's work. When Thomas Jefferson, then as secretary of State under George Washington, proposed this nation's first mechanic's lien law in 1791, he almost certainly did not contemplate a lien being filed against the types of structures commonly built today, particularly those arising out of shale play development.

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