Tyson faces 6.4 million mechanics lien against Pottsville plant

On Behalf of | Oct 3, 2022 | Business Disputes, Real Estate Litigation |

The Tyson Corporation faces a lien foreclosure on its Hillshire distribution center in Pottsville. It follows another lien filed against Tyson’s poultry processing plant in Tennessee. The lien in Pennsylvania was filed by Primus Builders, which helped build the 164,000 square foot expansion of the existing facility, which handles products for Tyson subsidiary Hillshire.

At the time, initial estimates put the cost at $59.7 million. The company did the expansion in Pottsville to address improvements in the I-81 corridor, which could improve and streamline the company’s service of the Northeast with Hillshire products.

Tyson hired the plaintiff, who is not associated with this firm, in June 2017 for $48 million to provide construction labor, materials and work to assist in building the addition. At that time, the project was supposed to take 17 months. The plaintiff subsequently filed a lien in May 2020, soon after completing the job.

Filing a lien in Pennsylvania

There is a specific process to filing a mechanics lien here in the Keystone State. It also requires many documents, which must be filed in the appropriate county and shared with the defendant. The plaintiff must also initiate legal action or foreclose the claim within two years of filing the lien. Failure to do so can mean the lien will expire, leaving contractors like Primus Builders unpaid for their work and expenses. While the lien is in place, Tyson cannot sell the property.

Resolving the dispute

The foreclosure process may prompt the defendant to pay the money owed or negotiate a new settlement. If this does not occur, the foreclosure goes before a judge, who will rule on the matter. Legal guidance is necessary for either scenario, so working with a business law attorney with experience in disputes is essential. They can guide the client through the entire process.