[CLC-Discussion] Supplier Finance Company Lien Rights

[RPPTL CLC-Discussion]

Based on the below definition of a “materialman” at Fla. Stat. s. 713.01(20), it appears that the company in question would qualify as the supplier to a subcontractor.  Unfortunately, the Owner may also be liable for the perhaps high interest rate being charged by the supplier if it is reflected in the contract terms with the sub. 

“Materialman” means any person who furnishes materials under contract to the owner, contractor, subcontractor,
or sub-subcontractor on the site of the improvement or for direct delivery to the site of the improvement or, for
 specially fabricated materials, off the site of the improvement for the particular improvement, and who performs
no labor in the installation thereof.

Michael Gibbons
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From: clc-discussion-bounces at lists.flabarrpptl.org <clc-discussion-bounces at lists.flabarrpptl.org> On Behalf Of RPPTL CLC-Discussion
Sent: Thursday, January 20, 2022 4:15 PM
To: clc-discussion at lists.flabarrpptl.org
Subject: [CLC-Discussion] Supplier Finance Company Lien Rights

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We have a general contractor client whose sub on a project has been something of a nightmare. One of the ways they have been a nightmare, we believe, is that they have engaged a company to buy materials for them.

That company is not the supplier itself, and all indications are that that company is not either a labor provider or subcontractor. Instead, they purchase the materials and allow the sub to pay them back over 120 days rather than having to pay immediately for the materials purchased. Of course, there’s probably some interest in that transaction.

My question: does this finance company have lien rights, assuming they otherwise comply with the notice provisions required by law?

Thanks.

Anthony D.​
 Lehman
Partner
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