Lien Service Suffers a Defeat and Injunction for Wrongfully Filing Construction Liens

The State Bar of North Carolina successfully sued an Illinois mechanic’s lien service called Lienguard, Inc.  The North Carolina Business Court recently ruled that Lienguard, Inc. violated North Carolina law by filing construction liens on behalf of their clients.  The Court held that Claims of Liens are legal documents which must be filed by a North Carolina attorney, rather than an out-of-state bulk service lien company.  As a result, the Court issued an injunction prohibiting Lienguard, Inc. from “preparing North Carolina claims of liens for others without being licensed to do so.”  Read the opinion here: http://www.ncbusinesscourt.net/opinions/2014_NCBC_11.pdf