[CLC-Discussion] Supplier Finance Company Lien Rights

RPPTL CLC-Discussion clc-discussion at lists.flabarrpptl.org
Thu Jan 20 14:29:42 PST 2022


They pay the supply house immediately and directly to take advantage of the savings that often results from immediate payment. Then they allow the sub to pay off the amount over 120 days.


________________________________

Anthony D. Lehman
Partner
Licensed in Georgia, Florida, and Alabama
Florida Bar Board Certified in Construction Law

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​Hudson Lambert Parrott Walker, LLC
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e:  alehman at hlpwlaw.com

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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 <clc-discussion at lists.flabarrpptl.org>
Sent: Thursday, January 20, 2022 4:55:19 PM
To: clc-discussion at lists.flabarrpptl.org <clc-discussion at lists.flabarrpptl.org>
Subject: Re: [CLC-Discussion] Supplier Finance Company Lien Rights


When the materials are delivered, how do they get there? In other words, is this financing entity actually in possession of the materials and arrange for delivery, or do they stay at the supply house and get delivered directly from there?



Bruce Partington | Shareholder
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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 3:33 PM
To: clc-discussion at lists.flabarrpptl.org
Subject: Re: [CLC-Discussion] Supplier Finance Company Lien Rights





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.



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From: clc-discussion-bounces at lists.flabarrpptl.org<mailto:clc-discussion-bounces at lists.flabarrpptl.org> <clc-discussion-bounces at lists.flabarrpptl.org<mailto: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<mailto:clc-discussion at lists.flabarrpptl.org>
Subject: [CLC-Discussion] Supplier Finance Company Lien Rights



CAUTION: THIS IS AN EXTERNAL EMAIL



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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Licensed in Georgia, Florida, and Alabama
Florida Bar Board Certified in Construction Law


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t:   678-701-2860<tel:678-701-2860>

m: 404-579-9795<tel:404-579-9795>

e:  alehman at hlpwlaw.com<mailto:alehman at hlpwlaw.com>


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