City Electric Supply Co. v. Arch Insurance Co.

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In this case involving a claimant seeking to enforce a target lien bond by commencing a civil action pursuant to the mechanic's lien statute, Mass. Gen. Laws ch. 254, 14, the Supreme Judicial Court vacated the superior court's order allowing Defendant Arch Insurance Company's (Arch) summary judgment, holding that the lien statute contains no requirement that the claimant record an attested copy of the complaint in the registry of deeds. City Electric Supply Company (CES) supplied electrical materials for a construction project in Brookline and perfected a mechanic's lien on the Brookline property. Later, general contractor Tocci Building Corporation issued and recorded a target lien bond in the amount of the mechanic's lien CES had created. The target lien bond listed Arch as surety. CES then filed an action against Arch seeking to enforce the target lien bond. A superior court judge granted summary judgment for Arch, concluding that suit on a lien bond requires an attested copy of the complaint to be recorded. The Supreme Judicial Court reversed and remanded the case, holding that a party seeking to enforce a target lien bond need not record a copy of a complaint in the registry of deeds as a condition precedent to enforcing the bond. View "City Electric Supply Co. v. Arch Insurance Co." on Justia Law