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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>In actuality, New Jersey has had some
version a statute imposing arbitration and other requirements to perfect a lien
for residential construction since 1994. There are 10 to 12 decisions
reported from the NJ appellate courts in which the 1994 law was treated, but it
was first taken up by the NJ Supreme Court in 2000. My understanding from
various online commentaries is that the 2011 enactments are largely directed to
addressing concerns brought to the legislature from the various court decisions
interpreting the original law. Here is a link to the NJ Supreme Court case
in which the 1994 law is interpreted: <a
href="http://caselaw.findlaw.com/nj-supreme-court/1156366.html">http://caselaw.findlaw.com/nj-supreme-court/1156366.html</a>
<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Here is a link to some commentary by a NJ practitioner
that (I believe) gives those of us who are otherwise unfamiliar with the path NJ
has followed some context: <a
href="http://caselaw.findlaw.com/nj-supreme-court/1156366.html">http://caselaw.findlaw.com/nj-supreme-court/1156366.html</a>
<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>The first concern that came to mind when I
read the legislation was the costs for arbitration through AAA and I did see
that Mr. Martin commented on this, as well. We have had success in
arbitration through AAA, both where required by contract or imposed by statute
(See, Chrysler), but the costs were in my view outrageous. I do see,
however, that AAA adopted specific rules for New Jersey construction lien
arbitration as far back as 1994. The most recent filing fees by Rule were
$175 for a paper submission and $450 if the parties want the case to be
formally heard. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Personally, I am opposed to any lien law
revisions that further complicate perfection and enforcement of liens,
particularly in the residential construction arena. Florida’s present
lien law quite adequately balances the interests of owners and lenders, against
those of claimants. I agree with Mr. Dudley. This sort of law looks
more like a foot in the door for legislation that casts labor, subs and
materialmen out to sea.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>One glaring issue: What if the property
owner files a petition in bankruptcy while the materialman holds a lien claim
in his pocket while awaiting an arbitrators ruling. He just went from
secured to a general unsecured creditor.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<div>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Thank you (Mr. Leiby) for bring the interesting
material to the floor, but put me down as a “no” vote.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Regards,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Gregory T. Elliott</span></font><font
color=navy><span style='color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><em><b><i><font size=2 color=navy face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:navy;font-weight:bold'>ELLIOTT
- BERGER, P. A.</span></font></i></b></em><font color=navy><span
style='color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>10225 Ulmerton Road, Suite 4A</span></font><font
color=navy><span style='color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Largo, Florida 33771</span></font><font
color=navy><span style='color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>(727) 360-2600 (Phone)</span></font><font
color=navy><span style='color:navy'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>(727) 360-6588 (Fax)</span></font><font
color=navy><span style='color:navy'><o:p></o:p></span></font></p>
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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
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color=navy face="Arial Narrow"><span style='font-size:7.5pt;font-family:"Arial Narrow";
color:navy'>Construction Law</span></font><font color=navy><span
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<p class=MsoNormal><font size=2 color=navy face=Calibri><span style='font-size:
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'>
constructionlaw-bounces@lists.flabarrpptl.org
[mailto:constructionlaw-bounces@lists.flabarrpptl.org] <b><span
style='font-weight:bold'>On Behalf Of </span></b>Larry Leiby<br>
<b><span style='font-weight:bold'>Sent:</span></b> Tuesday, June 14, 2011 12:09
PM<br>
<b><span style='font-weight:bold'>To:</span></b>
constructionlaw@lists.flabarrpptl.org<br>
<b><span style='font-weight:bold'>Subject:</span></b> [RPPTL-constructionlaw]
New Jersey residential lien law arbitration</span></font><font size=3
face="Times New Roman"><span style='font-size:12.0pt;font-family:"Times New Roman"'><o:p></o:p></span></font></p>
</div>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'>We
hear from time to time that residential (Ma & Pa) construction liens should
be treated differently from the typical commercial lien. The next time we
hear about that we may want to look at something akin to what New Jersey
implemented in January, 2011, copy attached. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'>I
just put it out there for reaction from the committee, without recommendation
for or against. If it were to be considered, it would need a little
surgery to make it comport with Florida procedure. I just found it
interesting and thought I would share.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'>Regards,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><font size=2 color="#215868" face="Arial Rounded MT Bold"><span
style='font-size:11.0pt;font-family:"Arial Rounded MT Bold";color:#215868;
font-weight:bold'>Larry R. Leiby, Esq.<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:11.0pt;
font-family:Arial;font-weight:bold'>Malka & Kravitz,
P.A.
<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:11.0pt;
font-family:Arial;font-weight:bold'>1300 Sawgrass Corp. Pkwy., Suite 100<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:11.0pt;
font-family:Arial;font-weight:bold'>Ft. Lauderdale, FL 33323<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>Phone: 954-514-0984<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>Fax:
954-514-0985<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>e-mail: leiby@mkpalaw.com<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face="Arial Rounded MT Bold"><span
style='font-size:11.0pt;font-family:"Arial Rounded MT Bold";font-weight:bold'>Board
Certified in Construction Law<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face="Arial Rounded MT Bold"><span
style='font-size:11.0pt;font-family:"Arial Rounded MT Bold";font-weight:bold'>Certified
Circuit Court Civil Mediator<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face="Arial Rounded MT Bold"><span
style='font-size:11.0pt;font-family:"Arial Rounded MT Bold";font-weight:bold'>Fellow,
College of Commercial Arbitrators<o:p></o:p></span></font></b></p>
<p class=MsoNormal><b><font size=2 face="Arial Rounded MT Bold"><span
style='font-size:11.0pt;font-family:"Arial Rounded MT Bold";font-weight:bold'><o:p> </o:p></span></font></b></p>
<p class=MsoNormal><font size=2 face=Calibri><span style='font-size:11.0pt'><o:p> </o:p></span></font></p>
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