376.250 Withholding by public authority of funds due contractor and their
593 words·~3 min read·
/ky/376-250A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
payment to lien claimant -- Protest by contractor -- Suit by lien claimant.
(1)When an attested copy of the lien statement and proof of the delivery of an attested
copy as provided in KRS 376.240 is delivered to any public authority which has
contracted for the construction or improvement of any bridge, public highway, or
other public property owned by the state, a subdivision or agency thereof, or by any
city, county, urban-county, or charter county government, the public authority shall
endorse on the attested copy the date of its receipt, file the copy and deduct and
withhold the amount thereof, plus pursuant to KRS 64.012 to cover the fee of the
county clerk for filing the statement and attesting a copy, from any amount then due
the contractor, and if a sufficient amount is not then due the contractor from the
next payments which become due.
(2)Unless the contractor, within thirty
(30)days from the date of the delivery of the
attested copy, files with the public authority a written protest putting in issue the
correctness of the amount due the lien claimant or the liability of the fund for
payment thereof, the amount withheld shall be paid by the public authority to the
lien claimant and charged to the account of the contractor, which payment shall
operate as a pro tanto release of the public authority from any claim of the
contractor under the contract for the amount so paid. The filing in the county clerk's
office of the statement of lien provided for in KRS 376.230(2) shall be constructive
notice to the contractor of the filing of the claim.
(3)If the contractor files a written protest as provided in subsection
(2)of this section,
the public authority with whom the protest is filed shall endorse thereon the date of
its receipt. The public authority shall promptly send written notice of the protest to
the lien claimant by certified mail, return receipt requested and shall not pay over to
the lien claimant any of the money withheld from the contractor until authorized to
do so by the contractor or until directed to do so by an order or judgment of court.
(4)If suit is not instituted by the lien claimant for the enforcement of the lien and
summons in the suit is not served on the public authority or its chairman within
thirty
(30)days after the written notice of the protest is mailed to the claimant, then
the lien shall automatically be released and the funds withheld pursuant to the filing
of the lien statement shall be released and promptly paid to the contractor. If suit is
filed and summons served within the time provided, the payment of the funds shall
be withheld until ordered to be released or paid over by an order or judgment of the
court, and then paid as directed by the order or judgment.
(5)All suits for the enforcement of these liens on public funds shall be instituted in the
Circuit Court of the county in which is located the property on which the
improvement is made, except where the property is owned by a public university.
Where the property is owned by a public university, the suit shall be instituted in the
Circuit Court of the county in which is located the main campus of the public
university. This court shall have exclusive jurisdiction for the enforcement of liens
asserted against the public funds due the contractors, subject to the same rights of
appeal as in other civil cases.