{"id":947,"date":"2012-07-20T19:30:00","date_gmt":"2012-07-20T19:30:00","guid":{"rendered":"https:\/\/www.lienitnow.com\/blog\/index.php\/2012\/07\/20\/idaho-mechanics-liens-subject-to-idaho-contractor-registration-act\/"},"modified":"2012-07-20T19:30:00","modified_gmt":"2012-07-20T19:30:00","slug":"idaho-mechanics-liens-subject-to-idaho","status":"publish","type":"post","link":"https:\/\/www.lienitnow.com\/blog\/2012\/07\/idaho-mechanics-liens-subject-to-idaho.html","title":{"rendered":"Idaho Mechanics Liens Subject to Idaho Contractor Registration Act"},"content":{"rendered":"<div>Construction contractors in Idaho must comply with Idaho\u2019s <a href=\"http:\/\/legislature.idaho.gov\/idstat\/Title54\/T54CH52.htm\" jquery171008810934026067435=\"8\" target=\"_blank\">Contractor Registration Act<\/a>&nbsp;(ICRA).&nbsp; This Act&nbsp;requires that construction contractors register with the state. Furthermore, the Act&nbsp;bars unregistered contractors from placing an <a href=\"http:\/\/www.lienitnow.com\/idaho-faq.asp\">Idaho&nbsp;mechanic\u2019s lien<\/a> on the property they worked on or suing to collect compensation for their work. This Act is similar to laws already in place in many other states, and there is a national trend&nbsp;of enacting similar requirements or&nbsp;strengthening already existing laws relating to contractor registration.<\/p>\n<p>Recently, the&nbsp;Idaho Supreme Court, in <a href=\"http:\/\/www.llclawmonitor.com\/uploads\/file\/Stonebrook%2037868.pdf\" jquery171008810934026067435=\"9\" target=\"_blank\"><em>Stonebrook Constr., LLC v. Chase Home Fin., LLC<\/em><\/a>, 277 P.3d 374 (Idaho 2012),&nbsp;decided whether an LLC member\u2019s contractor registration satisfied the registration requirement for the LLC as a whole. The LLC, Stonebrook Construction, LLC, was a general contractor. The court held that an LLC&#8217;s&nbsp;member\u2019s registration was not sufficient to satisfy the&nbsp;State&#8217;s registration requirement.<\/p>\n<p>In 2007 and 2008, Stonebrook Construction, LLC, in accordance with an agreement between it and a property owner, built a home.&nbsp;The homeowner never paid the agreed-upon amount for the construction of the residence, and thereafter&nbsp;Stonebrook recorded a claim of lien against the property.&nbsp; When the lien was not satisfied, Stonebrook&nbsp;brought an action to foreclose its lien. <\/p>\n<p>Chase Home Finance held a deed of trust against the property, however, and intervened in the LLC\u2019s foreclosure action. Chase obtained&nbsp;summary judgment on the ground that Stonebrook was barred from claiming a lien on the property because it had not registered as required by the ICRA. <\/p>\n<p>On appeal, Stonebrook argued&nbsp;that it complied with the ICRA because the ICRA applies to any \u201cperson,\u201d and \u201cperson\u201d is defined as \u201cany individual, firm, partnership, limited liability company, \u2026 or any combination thereof acting as a unit.\u201d <a href=\"http:\/\/www.legislature.idaho.gov\/idstat\/Title54\/T54CH52SECT54-5203.htm\" jquery171008810934026067435=\"11\" target=\"_blank\">Idaho Code \u00a7 54-5203(6)<\/a>. The Appellate court&nbsp;held that \u201ca plain reading of the statute leads us to conclude that the Act requires the listed entities, including combinations of those entities, to register.\u201d The court pointed out that Stonebrook\u2019s arguments were inconsistent with the separate entity nature of the LLC and the members\u2019 insulation from the LLC\u2019s debts and obligations.<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Construction contractors in Idaho must comply with Idaho\u2019s Contractor Registration Act&nbsp;(ICRA).&nbsp; This Act&nbsp;requires that construction contractors register with the state. Furthermore, the Act&nbsp;bars unregistered contractors from placing an Idaho&nbsp;mechanic\u2019s lien on the property they worked on or suing to collect compensation for their work. This Act is similar to laws already in place in many [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1585,1584,1586,1583,1587],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Idaho Mechanics Liens Subject to Idaho Contractor Registration Act - Tools of the Trade | LienItNow Blog<\/title>\n<meta name=\"description\" content=\"Construction contractors in Idaho must comply with Idaho\u2019s Contractor Registration Act&nbsp;(ICRA).&nbsp; This Act&nbsp;requires that construction\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lienitnow.com\/blog\/2012\/07\/idaho-mechanics-liens-subject-to-idaho.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Idaho Mechanics Liens Subject to Idaho Contractor Registration Act - Tools of the Trade | LienItNow Blog\" \/>\n<meta property=\"og:description\" content=\"Construction contractors in Idaho must comply with Idaho\u2019s Contractor Registration Act&nbsp;(ICRA).&nbsp; 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