2006 Ohio Revised Code - 1311.15. Superiority of liens; assignment; direct payment of claim of subcontractor, materialman or laborer.

§ 1311.15. Superiority of liens; assignment; direct payment of claim of subcontractor, materialman or laborer.
 

(A)  The lien of a subcontractor is superior to any already taken or to be taken by the original contractor in respect of the same labor, work, or material, and the liens of laborers, materialmen, and subcontractors to an original contractor or subcontractor, are superior to any lien already taken or to be taken by such original contractor or subcontractor indebted to them in respect of such labor, work, or material. An assignment or transfer by the original contractor or subcontractor, of his contract with the owner or original contractor, as well as all proceedings in attachment, or otherwise, against the original contractor or subcontractor, to subject or encumber his interest in such contract, is subject to the claims of every laborer, subcontractor, or materialman who performs any labor or work or furnishes any material in furtherance of any improvement in accordance with this chapter. 

(B) (1)  An owner, part owner, lessee, or public authority may pay directly the claim of any subcontractor or materialman who serves a notice of furnishing pursuant to section 1311.05 or 1311.261 [1311.26.1] of the Revised Code, or the claim of any laborer. If the owner, part owner, lessee, or public authority pays such claim, he has a right to a setoff or credit, in an amount equal to the amount paid, against the original contractor or principal contractor who employed the subcontractor, materialman, or laborer paid by the owner, part owner, lessee, or public authority under division (B)(1) of this section. 

(2) A principal contractor, an original contractor, or a subcontractor may pay directly the claim of any subcontractor or materialman who serves a notice of furnishing pursuant to section 1311.05 or 1311.261 [1311.26.1] of the Revised Code, or the claim of any laborer. If the principal contractor, original contractor, or subcontractor pays such claim, he has a right to a setoff or credit, in an amount equal to the amount paid, against the subcontractor who employed the subcontractor, materialman, or laborer paid by the principal contractor, original contractor, or subcontractor under division (B)(2) of this section. 

(C)  The failure of an original or principal contractor, subcontractor, materialman, or laborer to properly exercise his rights under this chapter does not limit his right to pursue any other legal or equitable remedy. 
 

HISTORY: GC § 8322; 103 v 369, § 13; Bureau of Code Revision, 10-1-53; 143 v H 238 (Eff 4-10-91); 144 v S 338. Eff 4-16-93.