Under HRS 507, which of the following parties has priority in a mechanics lien situation?
Correct Answer
C) Labor claims have priority over material claims
Under Hawaii mechanics lien law (HRS 507), claims for labor have priority over claims for materials when multiple liens exist on the same property.
Why This Is the Correct Answer
Hawaii Revised Statutes Chapter 507 (mechanics lien law) explicitly grants priority to labor claims over material claims when multiple liens exist against the same property. This reflects the public policy of protecting workers who personally perform labor before protecting those who supply materials.
Why the Other Options Are Wrong
Option A: The party with the largest claim amount
Lien priority under HRS 507 is not determined by the dollar amount of the claim. A small labor claim can outrank a large material claim. Priority is based on the type of claim (labor vs. material) and sometimes the date of filing, not the size.
Option B: Subcontractors and material suppliers share equal priority
Subcontractors and material suppliers do not share equal priority — HRS 507 creates a hierarchy. Labor claims rank above material claims regardless of whether the claimant is a subcontractor or supplier.
Option D: The general contractor who filed first
Being the general contractor who filed first does not automatically grant priority. Under HRS 507, the type of claim (labor vs. material) determines priority, not the order of filing or the claimant's tier in the construction hierarchy.
Memory Technique
Remember: 'L before M' — Labor before Material in Hawaii mechanics liens. Workers who sweat get paid before suppliers who ship.
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