Moody and Shea, P.A.

How Do I Apply Payments Received From a Customer With More than One Account or Project?

Any person who makes a payment to one with whom the party making the payment has a running account, or more than one contract or account, or some other indebtedness, must designate the contract or account to which the payment applies, or the party making the payment shall be liable to anyone suffering a loss as a result. A subcontractor, sub-subcontractor, or materialman who receives a payment for materials must demand that the person making the payment designate the account and the items/invoices to which the payment is to be applied. If the lienor receiving the payment fails to demand such a designation, a defense can be raised as to any Claim of Lien recorded by the lienor that failed to make such designation to the extent that the owner paid the contractor for the materials, and the contractor in turn made payment to the lienor who failed to demand the designation of the account and items to which the payment was to be applied.

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DISCLAIMER AND CAUTION: THESE MATERIALS ARE PROVIDED FOR GENERAL INFORMATIONAL PURPOSES ONLY AND ARE NOT INTENDED NOR SHOULD THEY BE CONSTRUED AS LEGAL ADVICE AS TO ANY PARTICULAR SET OF FACTS OR CIRCUMSTANCES. DUE TO THE COMPLEXITY OF THE CONSTRUCTION LIEN LAW STATUTES AND THE CASES INTERPRETING AND APPLYING THE STATUTES, IT IS RECOMMENDED THAT COMPETENT LEGAL COUNSEL BE CONSULTED IN REGARD TO ANY QUESTIONS AS TO THE APPLICABILITY OF CONSTRUCTION LIEN LAW TO ANY SET OF PARTICULAR FACTS.

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