RESOLUTION OPPOSING HOUSE BILL NO. 1637, PRINTER’S NO. 4005
(AMENDMENTS TO THE PENNSYLVANIA MECHANICS’ LIEN LAW)

WHEREAS, the Philadelphia Bar Association has a long-established history of opposing federal, state and local legislation that unnecessarily impedes growth and development in Pennsylvania;

WHEREAS, the waiver of mechanics’ lien claims for Pennsylvania construction projects has been a long standing practice that has provided owners and lenders with certainty and protection against mechanics’ lien claims having priority over mortgages and other liens while at the same time providing contractors and subcontractors with adequate legal rights for recovering any unpaid construction fees and expenses;

WHEREAS, Pennsylvania General Assembly House Bill No. 1637, Printer’s No. 4005, as amended by the Pennsylvania Senate, proposes to amend the Pennsylvania Mechanics’ Lien Law of 1963 (the “Mechanics’ Lien Law”) in order to prohibit contractors and their subcontractors from filing waiver of liens for non-residential improvements and some specifically defined residential improvements;

WHEREAS, the Philadelphia Bar Association believes that the proposed amendments to the Mechanics Lien Law would produce an undesired result which could not only impede development but also cause a severe financial burden to homeowners and developers making improvements on non-excluded properties and to lenders providing mortgages which are not covered by the proposed law, as a result of either costly "title bring downs" before making any payments for work performed or initiating litigation to remove liens filed by contractors and/or subcontractors.

NOW, THEREFORE, BE IT RESOLVED that the Philadelphia Bar Association hereby urges the General Assembly to oppose the proposed changes to the Mechanics’ Lien Law contemplated by House Bill No. 1637, Printer’s No. 4005, and further to oppose legislation that would make substantially similar changes to the Mechanics Lien Law.

AND BE IT FURTHER RESOLVED, that the Chancellor or his/her designee are authorized to take whatever steps are deemed necessary to communicate the views of the Philadelphia Bar Association to the appropriate members of the General Assembly and to the Governor, and to otherwise effectuate this resolution.

PHILADELPHIA BAR ASSOCIATION
BOARD OF GOVERNORS
ADOPTED: MAY 25, 2006