Nebraska § 52-157 - Remedies for wrongful conduct.

§ 52-157. Remedies for wrongful conduct.

(1) If a person is wrongfully deprived of benefits to which he or she is entitled under sections 52-125 to 52-159 by conduct other than that described in section 52-156:

(a) He or she is entitled to damages; and

(b) The court may make orders restraining the owner or other person, or ordering them to proceed on appropriate terms and conditions.

(2) If in bad faith a claimant records a lien, overstates the amount for which he or she is entitled to a lien, or refuses to execute a release of a lien, the court may:

(a) Declare his or her lien void; and

(b) Award damages to the owner or any other person injured thereby.

(3) Damages awarded under this section may include the costs of correcting the record and reasonable attorney's fees.

A person is not wrongfully deprived of benefits to which he or she is entitled under the Construction Lien Act for merely having to foreclose on a construction lien; wrongful deprivation requires something more than merely foreclosing a construction lien. BCL Properties v. Boyle, 314 Neb. 607, 992 N.W.2d 440 (2023).

This section authorizes attorney fees in circumstances involving the wrongful deprivation of benefits or bad faith, but it does not authorize such fees in every action involving foreclosure of a construction lien. Echo Group v. Tradesmen Internat., 312 Neb. 729, 980 N.W.2d 869 (2022).

To act with bad faith, one must know his or her lien is invalid or overstated or act with reckless disregard as to such facts. Chicago Lumber Co. of Omaha v. Selvera, 282 Neb. 12, 809 N.W.2d 469 (2011).

While this section states that damages awarded may include reasonable attorney fees, it does not mandate the award of such fees. Model Interiors v. 2566 Leavenworth, LLC, 19 Neb. App. 56, 809 N.W.2d 775 (2011).