Assembly Bill No. 317–Assemblyman Brown
(by request)

 

March 14, 2003

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Revises provision pertaining to amount recoverable by contractor upon notice of lien. (BDR 9‑1132)

 

FISCAL NOTE:    Effect on Local Government: No.

                             Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to liens; revising the provision pertaining to the amount recoverable by a contractor upon a notice of lien; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 108.235 is hereby amended to read as follows:

1-2  108.235  1.  [The contractor shall be entitled to recover, upon

1-3  a lien recorded by him, only such] A prime contractor:

1-4  (a) Upon a notice of lien, may recover the lienable amount as

1-5  may be due to him [according to the terms of his contract, after

1-6  deducting all claims of other parties] , plus all amounts that may be

1-7  awarded to him by the court pursuant to NRS 108.237; and

1-8  (b) Upon receipt of the amount described in paragraph (a),

1-9  shall pay all liens for the work [done and material furnished,] ,

1-10  equipment or materials which were furnished to him as provided

1-11  in NRS 108.221 to 108.246, inclusive.

1-12      2.  In all cases where a prime contractor has been paid for the

1-13  work, materials or equipment which are the subject of a notice of

1-14  lien [is] recorded under NRS 108.221 to 108.246, inclusive, [for

1-15  work done or materials furnished to any contractor, he] the prime

1-16  contractor shall defend the owner in any action brought thereupon

1-17  at his own expense. [During the pendency of the action,]

2-1  3.  Except as otherwise provided in this subsection, if a lien

2-2  claimant records a notice of lien for the work, equipment or

2-3  materials furnished to the prime contractor, the owner may

2-4  withhold from the prime contractor the amount of money for which

2-5  [such] the lien claimant’s notice of lien is [filed.] recorded. If the

2-6  lien claimant’s notice of lien resulted from the owner’s failure to

2-7  pay the prime contractor for the lien claimant’s work, materials or

2-8  equipment, the owner shall not withhold the amount set forth in

2-9  the notice of lien from the prime contractor if the prime contractor

2-10  tenders a release of the lien claimant’s lien to the owner. In case of

2-11  judgment against the owner or his property [upon] which is the

2-12  subject of the lien, the owner [shall be entitled to] may deduct, from

2-13  any amount due or to become due by him to the prime contractor,

2-14  the amount [of the judgment and costs. If the amount of the

2-15  judgment and costs exceeds the amount due by him to the

2-16  contractor, or if the owner has settled with the contractor, the owner

2-17  shall be entitled to] paid by the owner to the lien claimant for

2-18  which the prime contractor was liable and recover back from the

2-19  prime contractor any amount so paid by the owner in excess of the

2-20  [contract price, and for which the contractor was originally the party

2-21  liable.] amount the court has found that the owner owes to the

2-22  prime contractor.

2-23      4.  As used in this section, “prime contractor” means a person

2-24  who contracts with an owner of property to provide work,

2-25  materials or equipment to be used for the improvement of the

2-26  property or in the construction, alteration or repair of a work of

2-27  improvement.

2-28      Sec. 2.  This act becomes effective on July 1, 2003.

 

2-29  H