Two parties each claimed breach of a construction contract. The construction company claimed a construction lien for over $600K. At arbitration, the arbitrator awarded the construction company that amount, but also awarded the purchaser $185K. The purchaser paid the amount in full, which the construction company accepted.

The Construction Lien Act (CLA), MCL 570.1118, grants a court discretion to award attorney’s fees to “a lien claimant who is the prevailing party” in “an action to enforce a construction lien through foreclosure.” The question is whether the construction company “prevail[ed]” when it won on a breach of contract claim and accepted a full payment mandated by an arbitrator.

Trial-Lawyers’ Bottom Line: A company can prevail in an action to enforce a construction lien through foreclosure, even if it doesn’t win on the construction lien claim.