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does a purchase order act as a written contract in NJ?

I am a small cabinetmaker in NJ who did a residential job where I was paid by the interior designer not the homeowner. I did not have a written contract with the designer only purchase orders. He has not paid me my final payment although the job was completed almost 3 months ago. Can I file a Lien?

2 replies

Jun 26, 2020

New Jersey’s requirement for a written contract regarding mechanic’s liens is mentioned in NJ Rev Stat § 2A:44A-3, although NJ Rev Stat § 2A:44A-2 is where the definition of “contract” is located. This definition identifies a contract as: “...any agreement, or amendment thereto, in writing, signed by the party against whom the lien claim is asserted and evidencing the respective responsibilities of the contracting parties, including, but not limited to, price or other consideration to be paid, and a description of the benefit or improvement to the real property subject to a lien..” While this definition does not explicitly mention purchase orders, it does go on to further indicate that for suppliers a “delivery or order slip” is sufficient under certain conditions. In addition, a purchase order generally includes things like the quantity of the materials/labor, a timeline for shipment or installation, and the total and unit prices for the items or labor to be supplied. If a purchase order were to include the items outlined in the statutory definition of contract, it is likely that it could ultimately be considered a written contract. Keep in mind, however, that New Jersey has rigid rules for filing residential liens, including important deadlines. Prior to filing a lien, claimants must also file a Notice of Unpaid Balance (NUB) in the county records where the property is located within 60 days of last furnishing labor or materials. Within ten days of filing the NUB, the case must then be sent to be reviewed by the American Arbitration Association, who ultimately decides how much can be claimed on the lien. It would be helpful to consult a construction attorney if you feel you are outside of your window to file or are unsure about the process or the details of your particular situation.

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Jun 27, 2020

If you last delivered to the residence over 60 days ago, then it would appear you are out of time to file a lien against the residence. However, you likely still have a direct cause of action against the Interior Designer with whom you had the agreement, and possibly claims against the owner of the Interior Design firm if the NJ Consumer Fraud Act applies to your transaction. If the Interior Designer is a viable company and/or you have a viable claim against the owner personally, it may be worth pursuing legal action against them, even if you cannot file a lien against the residence. More information is needed to address these issues, but even if you cannot file a lien, you may still be able to recover the outstanding balance.

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