The Mechanic’s and Materialist’s Lien Claim and Settlement Process in Hawaii
For those craftsmen and materialists who provide labor or material in the improvement of real property in Hawaii and are not paid 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 based. The Hawaii Mechanic’s and Materialman’s Link statute provides for such a remedy.
Anyone claiming a mechanic’s or material lien must file an application with the circuit court where the property is located. Such person must submit a “Link Request” together with a written “Link Notice”. The Link Request must contain the following information: (1) the amount of the claim; (2) labor or material supplied; (3) a sufficient description of the property; (4) the names of the parties who contracted for the improvement; (5) the name of the general contractor; (6) names of the owners of the property and any person with an interest in it; and (7) any other matter necessary for a clear understanding of the claim. The Notice of Lien must state the facts alleged under which the person claims a lien.
The Application and Notice may be filed no later than forty-five days after the “completion date” of the improvement against which it is filed. “Completion Date” means the time the owner or general contractor of the improvement completes the posting of a notice that the improvement has been completed or abandoned and an affidavit of posting has been filed, along with a copy of the warning. at the clerk’s office of the circuit court where the subject property is located. If a valid notice of completion is not published and submitted within one (1) year after the actual completion or abandonment of the improvement, the completion date will be deemed to be one year after the actual completion or abandonment.
The Application and Notice must be served on the owner of the property and any person with an interest therein and on the party or parties that contracted for the improvements if they are not the owner of the property or any person with an interest thereon. The Application and Notice are required to be returnable not less than three nor 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 lien to be attached to the property. Probable cause for attaching a link is demonstrated by the existence of actual or visible improvements to the property in question. Any person required to be notified 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 lien to be assessed. 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 there is probable cause to allow the lien to be attached to the property, the court will issue an “Order to Attach Lien.” The lien expires three months after the entry of the Order ordering lien to lien, unless proceedings are initiated within that time to collect the amount owed through the execution of the lien.
As you can see, the process of claiming and attaching a Hawaii mechanic and material worker lien is complex, especially if the lien will be contested and a probable cause hearing is required. Therefore, you should seek a consultation with a Hawaii attorney who is experienced in Hawaii mechanical and material liens.
