JAMES P. KOCH
1101 St. Paul St.
Suite 404
Baltimore, MD 21202
Telephone 410 539 7816
Fax 410 539 3957
Email jameskoch@jpkochlaw.com
Information about Maryland mechanics lien law
Information about Miller Act, Little Miller Act cases
Publications relating to debtor/ creditor law
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More than 30 years experience representing debtors, creditors, trustees, and creditors' committees in bankruptcy court cases and adversary proceedings under chapter 7 (liquidation), chapter 11 (reorganization), and chapter 13 (wage earner plan) |
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10 years of service on panel of approved bankruptcy trustees in Maryland |
Click here to read a Washington Post article which reported the results of bankruptcy litigation against the owner of a defunct vocational school who fraudulently siphoned off the school's assets shortly before placing the school in bankruptcy.
Area Covered: Baltimore metropolitan area (including Baltimore City, Baltimore County, Anne Arundel County, Harford County, Howard County, Prince George's County) and Montgomery Co.
Minimum Claim Size Accepted: $2,500
Fees:
Fees are based on a percentage of the gross amount recovered before expenses, generally Commercial Law League rates for amounts collected prior to filing suit, and 25% of amounts collected after suit is filed. If the debtor contests liability and attendance at a trial on the merits becomes necessary, then the contingent fee is usually one-third (1/3) of the amount collected.
In most cases, a non-contingent suit fee is requested, due prior to filing suit. For claims up to $10,000, the non-contingent suit fee is 5% of the face amount of the claim. For claims over $10,000, the non-contingent suit fee is determined on a case by case basis. The non-contingent suit fee will be credited against the contingent fee in the final account at the conclusion of the case.
Please note that the requested fee in any given case could be more or less than the usual fee, as described above, depending on the size of the claim, and the anticipated complexity and difficulty of the case.
Costs Payable in Advance:
District Court of Maryland cases (Claims up to $30,000): $100.00 per defendant
Circuit Court cases (Claims over $30,000): $200.00 per defendant
U.S. District Court cases (certain kinds of claims over $75,000): Advance costs are determined on a case by case basis
Bond:
Claims forwarded through American Lawyers Quarterly and General Bar Directory are fully bonded.
The Collection Process
Claim investigation. We conduct a preliminary investigation of all claims in order to evaluate the likelihood that the claim is collectible. This includes U.S. Post Office verification of the debtor's current address; verification of the debtor's legal status (i.e., corporation, partnership, limited liability company, or sole proprietorship); determination whether the debtor is still in business; review of the debtor's litigation history, and check for bankruptcy filings by the debtor. We will pursue collection of a claim only if we believe that there is a reasonable likelihood that the claim can be collected, either in whole or in part.
Obtaining a judgment. If the debtor fails to respond to a written demand for payment, we initiate the litigation process by filing a complaint, either in the district court of Maryland (claims less than $30,000) or in circuit court (claims over $30,000). If the debtor fails to respond to the complaint, we can obtain summary judgment based on the claimant's sworn affidavit of indebtedness. If the debtor contests liability, the court will schedule a hearing on the merits, in which case the claimant must appear in person at trial in order to testify. If the claimant is unable or unwilling to appear at trial, the court will probably dismiss the case.
Collecting a judgment. Obtaining a judgment is often the easiest part of the case. A judgment, though, only establishes the debtor's legal obligation to pay. Judgments are not self-enforcing. In order to collect a judgment, it is often necessary to locate assets that can be garnished or levied upon. This is especially true in cases in which the debtor has been uncooperative. Over the years we have refined investigative methods and techniques that have enabled us to identify and locate the debtor's assets, including real estate, bank accounts, accounts receivable, vehicles, and assets that the debtor may have fraudulently transferred, hidden, or concealed.
Collection paralegal: Jeanine, 410 539 7814
Koch, MacFadyen, and McGlade, Maryland Foreclosure and Repossession (National Business Institute 1999)
Koch, "For Richer for Poorer: Bankruptcy Fundamentals for Maryland Divorce Lawyers", Maryland Bar Journal (March/April 1995)
Koch, Schumm, and Tsien, Maryland Foreclosure and Repossession (National Business Institute 1994)
Koch, Kremen, and Schumm, Protection of Secured Interests in Bankruptcy in Maryland (National Business Institute 1991)
Koch, "Exemptions in Bankruptcy", Maryland Bar Journal (September/ October 1991).
An unpaid contractor or subcontractor who has made improvements to real property may obtain a mechanics lien in order to enforce payment of his claim.
Under Maryland's mechanics lien statute, all newly erected buildings and existing structures that are repaired or improved to the extent of 15% or more of their value are generally subject to the establishment of a mechanics lien for the payment of debts for work done and materials provided for the building.
A subcontractor, in order to obtain a mechanics lien, must give the owner written notice of an intention to claim a lien within 120 days after doing the work or furnishing the materials. The written notice must be in the form set out in Sec. 9-104 of the Maryland Real Property Code Ann., and generally must be either personally delivered to the owner or sent by registered or certified mail, return receipt requested.
In order to establish a lien, the contractor or subcontractor must initiate proceedings by filing a petition in the circuit court for the county in which the real property is located, within 180 days after doing the work or furnishing the materials. After the petition is filed, the court issues an order which requires the owner to show cause why the mechanics lien should not attach. If the owner fails to respond to the show cause order, or fails to show cause why the lien should not attach, the court may enter a final order establishing a lien. If there is a legitimate dispute regarding the petitioner's entitlement to a lien, the court must schedule an evidentiary hearing to resolve the matter.
Miller Act, Little Miller Act cases
When improvements are made to real property owned by a governmental entity, a subcontractor may not obtain a lien on the government's property to enforce payment for work performed or materials furnished. Instead, the contractor must post a payment bond at the time the contract is awarded in order to secure its obligation to pay its subcontractors.
The law requiring contract surety bonds on federal construction projects is known as the Miller Act, 40 U.S.C. Sec. 270a et seq. The Miller Act applies to federal construction contracts over $100,000. A subcontractor or supplier who has a direct contract with the prime contractor on a federal construction project is not required to provide notice before filing suit on the bond. However, a second-tier subcontractor or supplier must give written notice of its intent to sue within 90 days after the claimant furnishes labor or materials for the project. The notice should be served by certified mail, or by some similar method which provides written verification that the notice was actually delivered. Under the Miller Act, suit on a payment bond may be filed no sooner than 90 days, and no later than one year, after the claimant furnished labor or materials to the project.
Maryland has enacted a statute, the Little Miller Act, which requires a contractor to post a payment bond whenever the State or local government awards a construction contract that exceeds $100,000, Maryland State Finance & Procurement Code Ann. Sec. 17-101 et seq. Before filing suit, a supplier who does not have a direct contractual relationship with the contractor must give written notice to the contractor by certified mail of its intent to sue, within 90 days after furnishing labor or materials to the project. An action on a payment bond must be filed within one year after the public body finally accepts the work performed under the contract.