The CLA was amended about five years ago to expand the definition of "improvement" so that it includes installation of equipment that is "essential to the normal or intended use of the land, building, structure or works." It seems that the intention of the legislature was that if the improvement is the construction of a new assembly plant, then almost all of the services and materials supplied to get the line up and running would be lienable
schemes, and value that is not lienable
at all or not traceable to the
If the plan document contains a reimbursement provision, the beneficiary and his or her attorney need to determine what funds from the settlement might be "lienable
" by the plan under Sereboff and whether there are arguments that the plan's reimbursement would not be "appropriate." Finally, in light of Varco, the beneficiary's attorney should not take his or her full fee out of the settlement until the plan's reimbursement claim is resolved.
Wilson is unclear, however, in that the surety's bond is first described as being one for the "faithful performance of a contract for the construction," but the opinion later refers to the surety's obligation as being "measured by its common law contract," with subsequent reference also being made to "the contract of this surety appellant includes, but does not reach beyond, claims for labor and materials actually going into the construction of the buildings." The court also stated that "under the original contract, the bond and the contract of April 25, 1930, the appellant [surety] directly assumes an obligation to pay lienable
claims of laborers and materialmen."
Such items generally would not have been considered lienable
based on a wealth of mechanic's lien case law.