Many of our clients are subject to mechanics’ liens being recorded against construction projects for alleged unpaid sums arising out of the work performed. Prior to the past year, it was generally understood that Tennessee Code Annotated § 66-11-142 permitted an owner or contractor to file a bond to remove a lien without waiving substantive defenses to the validity of the lien itself. However, the Tennessee Court of Appeals has now ruled otherwise.
On two separate occasions, first in 2008 and most recently in 2025, the Court of Appeals has held that the recording of a bond pursuant to T.C.A. § 66-11-142 “constitutes a waiver of any issue of validity, extent, priority, or amount of the lien.” See 83 Freight LLC v. C4 Sourcing Solutions. In other words, by filing a bond to discharge a lien, a party waives any defenses that could have been asserted as to the validity of the underlying lien. This can cause you to be required to waive certain rights and defenses, which in some cases can be absolute. For example, the failure of a contractor to be properly licensed forfeits that contractor’s right to file a lien. Yet, if a bond is filed to remove even a defective lien, the right to challenge the lien’s validity on such grounds is waived.
Accordingly, you must investigate both the lien and the lien claimant thoroughly prior to filing a bond to remove the lien, or you may forfeit valid and effective defenses to the lien.
Please feel free to contact us if you have further questions.