Notable Decisions
Galeb-Miller Dev., LLC v. Markham Contracting Co., Inc., 1 CA-CV 07-0872 (2009)
In a May 19, 2009 decision, the Arizona Court of Appeals reversed a trial court decision that would have unduly penalized lien claimants, especially on large, multi-lot properties. In this case, developer Galeb-Miller failed to pay our client Markham for its work, and did not provide the subcontractor with the required notice that its liens were bonded off. Because of the bonds, the trial court found Markham Contracting's filing of five lien notices "groundless" and required it to pay damages for the supposedly unnecessary notices, citing Arizona's False Documents Act. Palecek & Palecek argued that the fine would have a chilling effect on contractors' lien rights, while simultaneously favoring developers over contractors, subcontractors and suppliers. The Court of Appeals agreed and ruled in favor of the specialty trade contractor.
