Sustainable 9, LLC d/b/a Sustainable 9 Design + Build v. Jacqueline Coleman, Riverland Bank, ...

Summary

The Minnesota Supreme Court held that when a contractor's negligent construction causes damage exceeding the amount of its mechanic's lien, the homeowner's common law defense of recoupment eliminates the lien entirely. Because the lien was extinguished, the contractor had nothing to enforce and could not recover attorney fees and costs under Minnesota Statutes section 514.14. The court reversed the court of appeals' affirmance of the district court's award of $62,500 in attorney fees and costs and remanded for further proceedings.