University of Kentucky branch into commercial development with its Coldstream land and the construction of a large building just off the Interstate Highway, well away from the University. The development was unique in that the University entered into a long-term land lease of the real property to a third party developer. That developer caused numerous claims to be asserted by contractors and subcontractors on the project who were not paid. They filed liens and then sought to enforce those liens. The complications of a construction project conducted under the appearance that the University was the owner of the project (when it was not) and that the University was the contractor on the project (when it was not) and that their should have been a statutorily required bond in place (when there was not) resulted in significant litigation involving dozens and dozens of unpaid trades involving millions of dollars in claims. On the discreet issue of the University’s claim of immunity and arguing that liens cannot be filed against University owned property, the Court denied the University’s motion for summary judgment ruling that liens can be filed against the leasehold interest of the property.
Construction/immunity/liens/KRS 376/bonds
