A contractor completes $85,000 worth of work on a commercial building in Charleston. The property owner fails to pay. What is the maximum amount the contractor can claim under South Carolina mechanics lien law?
Correct Answer
C) $85,000 plus interest and attorney fees
South Carolina mechanics lien law allows recovery of the contract amount plus interest and reasonable attorney fees when properly filed.
Why This Is the Correct Answer
$85,000 plus interest and attorney fees is the correct maximum recovery under SC mechanics lien law. When a contractor properly files and enforces a mechanics lien in South Carolina, the statute allows recovery of the full contract amount owed, accrued interest on unpaid amounts, and reasonable attorney fees incurred in enforcing the lien. This comprehensive recovery reflects the legislature's intent to make lien enforcement economically viable.
Why the Other Options Are Wrong
Option A: $85,000 plus reasonable attorney fees
$85,000 plus reasonable attorney fees only — while attorney fees are recoverable, this option omits interest, which is also allowable under SC law. An incomplete answer like this may tempt candidates who know attorney fees are included but forget about interest.
Option B: $85,000 plus 18% annual interest
$85,000 plus 18% annual interest — while interest is recoverable, 18% is not the statutory rate for SC mechanics lien claims. Additionally, this option omits attorney fees. The specific interest rate under SC mechanics lien law is not 18% (that figure may appear in credit card or late-payment contexts).
Option D: $85,000 only
$85,000 only — limiting recovery to the contract amount alone ignores the additional damages SC law permits. A lien claimant who wins in court is entitled to more than the base contract amount; restricting recovery to principal only understates the full scope of available remedies.
Memory Technique
Remember 'SC lien = PIA': Principal (contract amount) + Interest + Attorney fees. All three components are available when you properly enforce a SC mechanics lien. If you see an answer with all three elements, that's your pick.
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