When Should A Notice Of Furnishing Be Submitted?
Within 21 days AFTER the first labor or materials are supplied to a project. On May 10, 2010 the Twelfth District Court of Appeals issued an opinion contrary to common practices in the construction industry. Halsey, Inc. v. Isbel, 2010 Ohio 2052, 2010 WL 1850660 (Ohio App. 12 Dist.). The Court held that, "a notice of furnishing should not be served until after materials are furnished." And that service of a notice of furnishing is complete when mailed (not when received), if sent via certified mail.
In Halsey, the contractor mailed out its notice of furnishing the day before it provided any labor or material to the project. The contractor started work on the project the next day, and the notice of furnishing was received after work was commenced. But, the Court held that the contractor served its notice of furnishing the day it was mailed - before any labor or materials were provided to the project. The Court concluded the NOF was invalid, so the mechanics' lien was invalid and the lender was not liable for any claims relating to Ohio Lien Law.
The best practice is for a subcontractor or supplier to mail the Notice of Furnishing immediately after labor or materials have been provided to a project. For further information, please contact John Higgins at 513.651.6950.
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Attorney Spotlight
C. Michael Shull, III focuses his practice on construction law and litigation. Michael's client representations range from casinos and ENR Top 400 contractors to design firms and subcontractors.