H*3741(Rat #0168, Act #0140 of 1995)  General Bill, By Tripp
 A Bill to amend Section 29-5-20, as amended, Code of Laws of South Carolina,
 1976, relating to mechanics' liens, the lien of a laborer, mechanic,
 subcontractor, or materialman, limits on aggregate amount of liens filed by a
 sub-subcontractor or supplier, and settlement of an action to enforce a lien,
 so as to delete reference to "notice of intent to lien" and substitute
 therefor "notice of furnishing labor or materials"; to provide that "notice of
 intent to lien" is replaced by "notice of furnishing labor or materials" and
 authorize and direct the Code Commissioner to make this change wherever
 necessary in the statutory laws of this State.-amended title

   03/02/95  House  Introduced and read first time HJ-12
   03/02/95  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-13
   03/29/95  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-7
   04/04/95  House  Amended HJ-18
   04/04/95  House  Read second time HJ-18
   04/05/95  House  Read third time and sent to Senate HJ-15
   04/06/95  Senate Introduced and read first time SJ-15
   04/06/95  Senate Referred to Committee on Labor, Commerce and
                     Industry SJ-15
   04/26/95  Senate Recalled from Committee on Labor, Commerce and
                     Industry SJ-3
   05/24/95  Senate Read second time SJ-31
   05/25/95  Senate Read third time and enrolled SJ-44
   06/06/95         Ratified R 168
   06/12/95         Signed By Governor
   06/12/95         Effective date 06/12/95
   08/11/95         Copies available
   08/11/95         Act No. 140

AN ACT TO AMEND SECTION 29-5-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MECHANICS' LIENS, THE LIEN OF A LABORER, MECHANIC, SUBCONTRACTOR, OR MATERIALMAN, LIMITS ON AGGREGATE AMOUNT OF LIENS FILED BY A SUB-SUBCONTRACTOR OR SUPPLIER, AND SETTLEMENT OF AN ACTION TO ENFORCE A LIEN, SO AS TO DELETE REFERENCE TO "NOTICE OF INTENT TO LIEN" AND SUBSTITUTE THEREFOR "NOTICE OF FURNISHING LABOR OR MATERIALS"; AND TO PROVIDE THAT "NOTICE OF INTENT TO LIEN" IS REPLACED BY "NOTICE OF FURNISHING LABOR OR MATERIALS" AND AUTHORIZE AND DIRECT THE CODE COMMISSIONER TO MAKE THIS CHANGE WHEREVER NECESSARY IN THE STATUTORY LAWS OF THIS STATE.

Be it enacted by the General Assembly of the State of South Carolina:

Notice of furnishing labor or materials

SECTION 1. Section 29-5-20 of the 1976 Code, as last amended by Act 368 of 1992, is further amended to read:

"Section 29-5-20. (A) Every laborer, mechanic, subcontractor, or person furnishing material for the improvement of real estate when the improvement has been authorized by the owner has a lien thereon, subject to existing liens of which he has actual or constructive notice, to the value of the labor or material so furnished, including the costs of the action and a reasonable attorney's fee which must be determined by the court in which the action is brought but only if the party seeking to enforce the lien prevails. If the party defending against the lien prevails, the defending party must be awarded costs of the action and a reasonable attorney's fee as determined by the court. The fee and the court costs may not exceed the amount of the lien. The lien may be enforced as herein provided.

(B) In no event shall the aggregate amount of any liens filed by a sub-subcontractor or supplier exceed the amount due by the contractor to the subcontractor to whom the sub-subcontractor or supplier has supplied labor, material, or services unless the sub-subcontractor or supplier has provided notice of furnishing labor or materials by certified or registered mail to the contractor. Such notice of furnishing labor or materials shall include:

(1) the name of the sub-subcontractor or supplier who claims payment;

(2) the name of the person with whom the claimant contracted or by whom he was employed;

(3) a description of the labor, services, or materials furnished and the contract price or value thereof. Materials specially fabricated by a person other than the one giving notice and the contract price or value thereof shall be separately stated in the notice;

(4) a description of the project where labor, services, or materials were used sufficient for identification;

(5) the date when the first and the last item of labor or service or materials was actually furnished or scheduled to be furnished; and

(6) the amount claimed to be due, if any.

After receiving such notice, no payment by the contractor to the subcontractor will lessen the amount recoverable by the person so giving notice. However, in no event shall the total aggregate amount of liens on the improvement exceed the amount due by the owner.

(C) Not less than fifteen days before the first term of court at which the trial is set, either party may file and serve on the other party an offer of settlement, and within ten days thereafter the party served may respond by filing and serving his offer of settlement. The offer shall state that it is made under this section and specify the amount, exclusive of interest and costs, which the party serving the offer is willing to agree constitutes a settlement of the lien. The offer supersedes any offer previously made under this section by the same party.

An offer of settlement is considered rejected unless an acceptance in writing is filed and served on the party making the offer five days before the commencement of the term.

If the offer is rejected, it may not be referred to for any purpose at the trial, but may be considered solely for the purpose of awarding costs and litigation expenses under this section.

If a written offer of settlement is made by both parties, the party whose offer is closer to the verdict reached is considered the prevailing party in the action. If the difference between both offers and the verdict is equal, neither party is considered to be the prevailing party for purposes of determining the award of costs and attorney's fees. If the plaintiff makes no written offer of settlement, the amount prayed for in his complaint is considered to be his final offer of settlement for purposes of this section.

If the defendant makes no written offer of settlement, his offer of settlement is considered to be zero.

(D) Subsection (B) does not apply to individual laborers when the amount of their lien is less than two thousand dollars."

Replacement notice; duties of Code Commissioner

SECTION 2. "Notice of Intent to Lien" is replaced by "Notice of Furnishing Labor or Materials", and the Code Commissioner is authorized and directed to make this change wherever necessary in the statutory laws of this State.

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Approved the 12th day of June, 1995.