Puerto Rico Lien Law Summary
Prepared by:
Levy · von Beck & Associates, P.S.
600 University Street, Suite 3300
Seattle, WA 98101 (206) 626-5444
www.levy-law.com
M E M O R A N D U M
As you know, while you were on vacation we received a number of requests from Royal Wholesale and Electric to send out prelien notices for various jobs in Puerto Rico. Since there was nothing in the computer about Puerto Rico requirements, I researched Puerto Rico’s mechanic’s lien laws.
It turns out that Puerto Rico’s statutory mechanic’s lien provisions, Laws of Puerto Rico Annotated (L.P.R.A.) Title 29, Chapter 9, sections 171 - 194b cover claims for labor only. They do not provide for mechanic’s liens for materials supplied.
However, there is a separate statute, L.P.R.A. T. 31, Ch. 305, sec. 4130, that provides for a direct action against the owner of a “work agreed upon for a lump sum by a contractor,” although recovery is limited to the amount that the owner owes the contractor at the time the suit is filed. I’ve attached a copy of this statute. From the statute itself and the annotations, it is clear that suppliers to the general contractor are covered. However, it’s not so clear that suppliers to subcontractors are covered – except when there’s a payment and performance bond that covers them (this is specifically reflected in one of the annotations). The statute’s applicability to materialmen supplying subcontractors could probably be pinned down by reading the cases cited in the annotations, however.
In any event, there does not appear to be any requirement for a preliminary notice (not that an “informational” letter wouldn’t be a good idea) or for a final notice of claim. There is also no specific deadline for filing suit – it just has to be filed while the owner is still holding funds otherwise owed to the contractor.
I thought you might want to pass this along to Carolyn to process for future reference.
I have recorded the time I spent on this in TABS under 99.1001 in case someone wants to charge Royal for any of it.