For those artisans and materials who provide labor or material in the improvement of Hawaii real estate and do not receive payment for their services and materials, Hawaii law allows such persons the opportunity to obtain a lien on the improvement. . as well as on the interest of the owner of the improvement in the property on which the improvement is located. Hawaii’s “Mechanics and Materials Lien” statute provides for such a remedy.
Anyone claiming the bond of a mechanic or materials man must apply to the circuit court where the property is located. Such person must submit a “Lien Request” along with a written “Lien Notice”. The Lien Request must contain the following information: (1) the amount of the claim; (2) the labor or material provided; (3) a sufficient description of the property; (4) the names of the parties that contracted the improvement; (5) the name of the general contractor; (6) names of the owners of the property and of any person interested in it; and (7) any other matter necessary for a clear understanding of the claim. The Notice of Lien must establish the alleged facts by virtue of which the person claims a lien.
The Request and Notice may be filed no later than 45 days after the “end date” of the upgrade against which it is filed. “Completion Date” means the time when the owner or general contractor of the improvement completes the publication of a notice that the improvement has been completed or has been abandoned and an affidavit of publication has been filed, along with a copy of the notice. at the clerk’s office of the circuit court where the property involved is located. If a valid notice of completion is not posted and submitted within one (1) year after the actual completion or abandonment of the upgrade, the completion date will be considered one year after the actual completion or abandonment.
The Application and Notice must be delivered to the owner of the property and to any person with an interest in the property and to the party or parties who contracted for the improvements if they are not the owner of the property or anyone with an interest in the property. It is required that the Application and Notice can be returned no less than three or more than ten days after service.
If both parties have not been able to reach a compromise before the return day hearing, the court will schedule a “probable cause” hearing in which the court will determine if probable cause exists to allow the bond to adhere to the property. . The probable cause of the connection of a link is shown by the existence of real or visible improvements in the property of the subject. Anyone who is required to notify has the opportunity to offer testimony and documentary evidence at the probable cause hearing on the question of whether probable cause exists to allow the link to be attached. The bond will not be attached to the property until the court determines that probable cause exists and orders it to do so.
If the court determines that probable cause exists to allow the bond to adhere to the property, the court will issue an “Order Ordering Lien”. The lien expires three months after the entry of the Order ordering the lien to garnish, unless procedures are initiated within that time to collect the amount owed to enforce it.
As you can see, the process of claiming and setting a materials man and mechanic lien in Hawaii is complex, especially if the lien will be contested and a probable cause hearing is required. Therefore, you should consult with an experienced Hawaii mechanic and materials liens attorney in Hawaii.