Current Status Bill Number:View additional legislative information at the LPITS web site.580 Ratification Number:451 Act Number:408 Introducing Body:Senate Subject:Relating to mechanics' liens
(A408, R451, S580)
AN ACT AMEND SECTION 29-5-10, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MECHANICS' LIENS, SO AS TO INCLUDE PLAN PREPARATION, SPECIFICATIONS, AND DESIGN DRAWINGS WITHIN THE DEFINITION OF "LABOR PERFORMED" UNDER THIS SECTION AND TO PROVIDE THAT THE PREVAILING PARTY IN AN ACTION TO ENFORCE THE LIEN MAY RECOVER COSTS AND ATTORNEYS' FEES AND TO PROVIDE A PROCEDURE FOR SETTLING CLAIMS AND DETERMINING WHO IS THE PREVAILING PARTY; TO AMEND SECTION 29-5-20, RELATING TO MECHANICS' AND OTHER MATERIALMEN'S LIENS, SO AS TO PROVIDE THAT THE PREVAILING PARTY IN AN ACTION TO ENFORCE THE LIEN MAY RECOVER COSTS AND ATTORNEYS' FEES AND TO PROVIDE A PROCEDURE FOR SETTLING CLAIMS AND DETERMINING WHO IS THE PREVAILING PARTY.
Be it enacted by the General Assembly of the State of South Carolina:
Lien
SECTION 1. Section 29-5-10 of the 1976 Code, as last amended by Act 524 of 1976, is further amended to read:
"Section 29-5-10. (a) Any person to whom a debt is due for labor performed or furnished or for materials furnished and actually used in the erection, alteration, or repair of any building or structure upon any real estate or the boring and equipping of wells, by virtue of an agreement with, or by consent of, the owner of the building or structure, or any person having authority from, or rightfully acting for, the owner in procuring or furnishing the labor or materials shall have a lien upon the building or structure and upon the interest of the owner thereof in the lot of land upon which it is situated to secure the payment of the debt due to him. The costs which may arise in enforcing or defending against the lien under this chapter, including a reasonable attorney's fee, may be recovered by the prevailing party. The fee must be determined by the court in which the action is brought but the fee and the court costs may not exceed the amount of the lien. As used in this section, labor performed or furnished in the erection, alteration, or repair of any building or structure upon any real estate includes the preparation of plans, specifications, and design drawings and the work of making the real estate suitable as a site for the building or structure. The work is considered to include, but not be limited to, the grading, bulldozing, leveling, excavating, and filling of land (including the furnishing of fill soil), the grading and paving of curbs and sidewalks and all asphalt paving, the construction of ditches and other drainage facilities, and the laying of pipes and conduits for water, gas, electric, sewage, and drainage purposes. Any private security guard services provided by any person at the site of the building or structure during its erection, alteration, or repair is considered to be labor performed or furnished within the meaning of this section. 'Person' as used in this section means any individual, corporation, partnership, proprietorship, firm, enterprise, franchise, association, organization, or other entity.
(b) 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."
Lien
SECTION 2. Section 29-5-20 of the 1976 Code is 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) 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."
Time effective
SECTION 3. This act shall take effect upon approval by the Governor.