A homeowner refuses to pay a contractor $8,000 for completed work in Louisiana. The contractor wants to file a lien. What document must be filed first?
Correct Answer
C) Statement of Claim and Privilege
In Louisiana, a Statement of Claim and Privilege is the document that establishes the lien on the property for unpaid construction work.
Why This Is the Correct Answer
Under Louisiana's Private Works Act (La. R.S. 9:4801 et seq.), a contractor enforces their right to payment by filing a Statement of Claim and Privilege with the recorder of mortgages in the parish where the property is located. This filing establishes the lien (called a 'privilege' in Louisiana) against the property. It is the primary mechanism for a general contractor who has a direct contract with the owner to claim unpaid amounts.
Why the Other Options Are Wrong
Option A: Notice of Contract
A Notice of Contract is filed by the owner or general contractor at the start of a project to limit the owner's liability to claimants (subcontractors, suppliers) who did not file a Notice of Claim. It is a preventive filing at project inception, not a collection/lien document used after non-payment.
Option B: Notice to Owner
A Notice to Owner is terminology commonly used in other states' lien laws (such as Florida) as a preliminary notice requirement. Louisiana's Private Works Act uses different terminology and procedures. Louisiana does not use a 'Notice to Owner' as a lien prerequisite for general contractors.
Option D: Preliminary Notice
A Preliminary Notice is a generic term used in many states' mechanics lien laws to preserve lien rights before work begins or early in the project. Louisiana's lien statute does not use this as a required document for a general contractor pursuing a lien claim against the owner.
Memory Technique
Louisiana = Privilege, not a lien. The document is a 'Statement of Claim AND Privilege' — two parts in one name. Claim = what you're owed. Privilege = the property right that secures it. File it with the recorder of mortgages in the parish.
More la-supplement Questions
A contractor in Louisiana completes $85,000 worth of work on a residential project. The owner pays $70,000 but disputes the remaining $15,000. If the contractor files a lien claim, what percentage penalty can be awarded if the contractor prevails in court?
A contractor discovers contaminated soil during excavation that requires special disposal. The disposal cost is $12,000, and transportation is $3,500. If this was not foreseeable from the contract documents, who typically bears this cost under Louisiana law?
A construction worker is injured on a Louisiana job site. The contractor's workers' compensation carrier has 15 days to investigate. If they don't respond within this period, what happens to the claim?
Under Louisiana law, what is the minimum amount of workers' compensation insurance coverage required for construction contractors?
A contractor's employee is injured on a job site in Louisiana. The contractor has workers' compensation insurance. Which statement is correct regarding the employee's rights?
Under Louisiana Civil Code, if a building contract does not specify a completion date, when is the work considered to be due?
Under Louisiana building codes, what is the minimum width required for emergency egress windows in bedrooms?
A Class B contractor in Louisiana wants to bid on a project worth $175,000. What action must they take?
A contractor's worker is injured and files for workers' compensation. The injury occurred due to the worker's intoxication. Under Louisiana law, what is the likely outcome?
A general contractor discovers contaminated soil during excavation for a commercial project in Louisiana. Which state agency must be notified?
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Under Louisiana's Private Works Act, a subcontractor who has not been paid can file a lien against the property owner even if the owner has paid the general contractor in full. This concept is known as:
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