In: Accounting
Mechanic’s and Artisan’s Liens
What if someone attempts to exercise a lien wrongfully, and there is a dispute on whether any payment is due? What remedies does the person whose property has been wrongfully possessed have?
The main difference between artisan and mechanical lien
is that:
Artisan liens is against personal property and its possessory while
mechanic liens deals with real property
Artisan lien is purely based on labor rendered while mechanical
lien is more based on the contractors and is extended to
suppliers
Mechanical lien is broader while artisan lien is a bit narrow
Where both liens are applicable
Artisan lien is applied when a laborer is not paid in full amounts
after completing his or her work. It gives him a chance to retain
personal property until such payment is made. Mechanical lien on
the other hand is applied when contractors fail to pay mechanics
their full dues.
Yes it is the most efficient way of recovering any loss that would
be caused by defaulters in construction firms. It gives both
laborers and mechanics a guarantee of being paid their full amounts
after completing their work. It protects many builders from unfair
exploitation from superiors
It is a fair way of recovering loss of service or product used by
the victims. In the long run, both parties will receive justice. As
long as none of the parties will have played well in their part,
then it is only fair for liens to be used
Mechanical and artisan liens are applicable only if the service is
rendered or the work assigned is completed dully. Therefore, there
is no any other basis for liens
Remedies for wrongful lien will include injunction against any
possession of property. The lien will therefore be released. The
victims of wrongful lien are also given monetary compensation due
cost of money. This is to ensure that the persons are given their
dues and equitably compensated