Real Estate: Making Owners and General Contractors Personally Liable to Subcontractor, Laborer or Materialman

     Virginia Code §43-11 provides a way for owners or general contractors to be made personally liable to subcontractor, laborer or materialman if notice is appropriately given, and if the payer makes payment to the owing party without paying the notifying creditor. Specifically, §43-11 (2) states that:
           “…if such subcontractor, or person furnishing labor or material shall

             at any time after the work is done or material furnished by him and

             before the expiration of thirty days from the time such building or

             structure is completed or the work thereon otherwise terminated

             furnish the owner thereof or his agent and also the general 

             contractor, or the general contractor alone in case he is the only one

             notified, with a second notice stating a correct account, verified by

             affidavit, of his actual claim against the general contractor or

             subcontractor, for work done or materials furnished and of the

             amount due, then the owner, or the general contractor, if he alone

             was notified, shall be personally liable to the claimant for the actual

             amount due to the subcontractor or persons furnishing labor or

             material by the general contractor or subcontractor, provided the

             same does not exceed the sum in which the owner is indebted to

             the general contractor at the time the second notice is given 

             or may thereafter become indebted by virtue of his contract with the

             general contractor, or in case the general contractor alone is

             notified the sum in which he is indebted to the subcontractor at

             the time the second notice is given or may thereafter become 

             indebted by virtue of his contract with the general contractor. But the

             amount which a person supplying labor or material to a

             subcontractor can claim shall not exceed the amount for which

             such subcontractor could file his claim.”
     The notices referred to in this code section are commonly referred to in the industry as “42-11 letters”. We have experienced attorneys and staff who can examine title, file mechanic’s liens, and litigate to enforce the same. If you have a need, please call us.