It’s me. Hi. I’m the problem. IT’S ME.

When LO-BPS uses

MATERIALS OF ANOTHER

LO-BPS OM

A.

Pay materials in full Receive full payment

OR
Remove materials if without substantial injury

B.

● Acquire materials for free Lose materials

● Entitled to damages Liable for damages

C.

● Pay materials in full Full payment + damages

● Liable for damages OR
Remove even if there is substantial injury + damages

D.

SAME as A SAME as A

When BPS builds, plants or sows in the

LAND OF ANOTHER

LO-BPS BPS

A.

OPTION 1 ● Receive payment with right of retention (w/o obligation to pay rent
It’s me. Hi. I’m the problem. IT’S ME.

● Acquire built, planted or sown until full payment)

● Pay expenses (necessary, useful, *luxurious) ● Remove useful improvements if without injury
● Remove luxurious improvements if without injury

OPTION 2 ● Purchase land at FMV (land not more than building or tree
● Oblige builder/planter to buy the land
● Oblige sower to pay rent ● Remove if builder/planter cannot pay the land or S cannot pay rent
● Value of land > value of building or trees
UNLESS: value of land > value of building or trees ○ Cannot buy → pay reasonable rent
○ Canoot pay rent → be ejected

B.

OPTION 1 Lose built, planted or sown + liable for damages

Acquire built, planted or sown FOR FREE + Pay expenses (necessary, useful,
*luxurious)
Receive payment for expenses:
● YES - necessary expenses (without right of retention)
● NO - useful expenses (and cannot remove)
● YES - luxurious expenses (if BPS wants)

OPTION 2 Pay for land or pay rent + liable for damages

● Oblige builder/planter to buy the land OR
● Oblige sower to pay rent
● Entitled to damages
REGARDLESS: value of land > value of building or trees
REGARDLESS: value of land > value of building or trees

OPTION 3
● Compel BPS to remove or demolish ● Obliged to remove or demolish work
● Entitled to damages ● Liable for damages

C.

● Acquire built, planted or sown OPTION 1: receive payment + entitled to damages

● liable for damages
OPTION 2: remove even if there is injury

D.
It’s me. Hi. I’m the problem. IT’S ME.

SAME as A SAME as A

WHEN LANDOWNER, BPS, & OWNER OF MATERIALS

ARE THREE DIFFERENT PERSONS

LO BPS OM

A.

OPTION 1 Require payment for value of land and expenses Receive payment for value of materials from BPS
● Acquire built, planted or sown ● with right of retention ● If BPS insolvent, subsidiarily from LO with
● Pay expenses (necessary, useful, ● Without obligation to pay rent until full no right of retention
*luxurious) payment

Remove useful improvements if without injury

Remove luxurious improvements if without injury

OPTION 2
● Oblige builder/planter to buy the land OR
● Oblige sower to pay rent
UNLESS: value of land > value of building or trees
● Purchase land at FMV (land not more Receive payment from BPS
than building or tree ● With right of retention and material rent
● Remove if builder/planter cannot pay the lien UNTIL full payment
land or S cannot pay rent ● LO is not subsidiarily liable
● Value of land > value of building or trees
○ Cannot buy → pay reasonable
rent
○ Cannot pay rent → be ejected

B.

Same as A Same as A Lose materials without payment

Liable for damages

C.

OPTION 1 ● Lose built, planted or sown + liable for Receive payment for value of materials from BPS
● Acquire built, planted or sown FOR FREE damages ● If BPS insolvent, subsidiarily from LO
● Pay expenses (necessary, useful, ● Receive payment for expenses:
It’s me. Hi. I’m the problem. IT’S ME.

*luxurious) ○ YES - necessary expenses

● Entitled to damages (without right of retention)
○ YES - luxurious expenses (if
BPS wants)
● Liable for damages
● No right of removal even if no injury

OPTION 2
● Oblige builder/planter to buy the land OR
● Oblige sower to pay rent
● Entitled to damages
UNLESS: value of land > value of building or trees
● Oblige builder/planter to buy the land OR Receive payment for materials from BPS only
● Oblige sower to pay rent
REGARDLESS: value of land > value of building or
trees

OPTION 3 ● Demolish/remove Receive payment for materials from BPS only

● Compel BPS to remove or demolish ● Liable for damages
● Entitled to damages

D.

SAME as C Same as C ● Treat LO and BPS as if both in good faith

● Right to receive payment for materials
from BPS only whatever the choice of LO
is ((LO has no subsidiary liability because
OM is in good faith only insofar as BPS is
concerned)
● If LO choose Option 1
○ OM no right to remove materials
even if no injury
● If LO choose Option 2
○ OM can remove if no injury
● If LO choose Option 3
○ OM liable for damages due to
defects or inferior quality of
materials

E.

● Acquire built, planted or sown OPTION 1: receive payment + entitled to damages Receive payment for value of materials from BPS
● liable for damages ● If BPS insolvent, subsidiarily from LO
OPTION 2: remove even if there is injury

BSP has no option to acquire the land

It’s me. Hi. I’m the problem. IT’S ME.

F.

SAME as E SAME as E No right to receive payment for materials from BPS

or LO (who ends up owning the building trees)