A recent North Carolina Court of Appeals decision has contractors and material suppliers across the state re-examining lien furnishing date requirements. At issue is establishing correct “first and last dates of furnishing” and more broadly, what it means to “substantially comply” with N.C. Gen. Stat. § 44A-12, et seq.
In K. Lee Builders, Inc. v. Barnes, the Court of Appeals emphasized both the importance of accurately identifying the dates of furnishing when filing a mechanic’s and the unforgiving nature of North Carolina’s lien statutes. The Court’s ruling will reshape how trial courts analyze and enforce mechanics liens, even in the absence of statute of limitations challenges and competing priority interests.
Background
On August 1, 2022, Barnes contracted with Lee Builders, a licensed general contractor, to construct a new home. Despite contracting with Barnes in August, Lee Builders did not break ground on the property until November 2, 2022. In the subsequent months, a dispute arose regarding the quality of Lee Builders’ work, leading to Barnes withholding payment and Lee Builders ceasing work on the Property on September 13, 2023. Thereafter, on October 4, 2023. Lee Builders filed a Claim for Lien on Real Property. Critically. Lee Builders incorrectly listed the date that labor was first furnished as September 5, 2022, and the date labor was last furnished as August 25, 2023.
Court Decision
The Court has taken a significant stride in limiting what it means to “substantially comply” with the requirements laid out in N.C. Gen. Stat § 44A-12 et seq. Pointing to the Court’s 2025 ruling in Fine Line Homes, the Court equated Lee Builders failure to include a correct last furnishing date with the omission of a last furnishing date. The Court noted that the incorrect dates were not scrivener’s errors like those in the North Carolina Supreme Court’s ruling in Canady v. Creech. The Court distinguished Canady by noting that K. Lee Builders’ error was not obvious and self-apparent, increasing the risk that any interested party is not put on notice.
The Court downplayed the importance of actual prejudice, pointing out that the lien requirements are meant to put not only interested parties, but also parties who may become interested, on notice. The Court held that whether there is actual prejudice was not relevant to its analysis.
Finally, while the Court’s decision appeared to turn on the fact that K. Lee Builders’ recorded date of last furnishing was incorrect, the Court repeatedly noted that the claim of lien at issue listed two incorrect dates. This leaves the door open for future rulings by the Court that an incorrect first date of furnishing could result in a finding that the lien is unenforceable, as it would affect the date of attachment and could therefore impact potentially interested parties conducting title searches.
How Contractors and Subcontractors Are Affected
The Court’s limits the concept of “substantial compliance” within the lien statutes. It was previously generally understood that, when a recorded first/last date of furnishing was incorrect, the lien would be deemed substantially compliant in the absence of actual prejudice or statute of limitations defenses. That is no longer the case. The Court’s opinion is clear—if the date of first and/or last date of furnishing are incorrect, but not obviously so, the lien is legally defective and unenforceable.
Accordingly, contractors, subcontractors, and materials suppliers must take extra caution and care to confirm that all information supplied for a claim of lien is complete and accurate, paying particular attention to the first and last dates of furnishing. With regard to material suppliers, documenting first and last dates of furnishing, and how those dates are determined, has become particularly critical issues. While it was previously understood that material suppliers could simply rely on the date of shipping for the dates of furnishing, the analysis may not be that simple and is all the more critical following this ruling.
JAH Can Help
Based on the unforgiving nature of North Carolina’s mechanic’s lien statutes and the importance of filing a correct lien while establishing correct first and last days of furnishing, contact one of our experienced construction attorneys before filing your lien as we can help determine and locate all the relevant supporting documentation to ensure that your lien is complete, accurate, and enforceable.
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