By: Justin C. Carlin
In the Florida construction law context, contractors, subcontractors, and sub-subcontractors sometimes assert liens on property for (i) amounts that exceed that which is actually owed by a property owner, or (ii) work that was not actually performed on the property. When either of such events occurs, a court may find that the lien is fraudulent, declare that the lien unenforceable, and award actual and punitive damages to any person who is damaged by the fraudulent lien.
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Section 713.31(2)(a) of the Florida Statutes defines a fraudulent lien as a lien containing:
- A willful exaggeration as to the amount of the claim; or
- A claim for work not performed upon the property upon which the lienor seeks to impress its lien; or
- A claim for materials not furnished for the property upon which the lienor seeks to impress it lien; or
- A claim that is compiled “with such willful and gross negligence as to amount to a willful exaggeration.”