Proposed legislation and appeal on potential collision course to provide clarity to PA Lien Law’s inclusion of rental equipment

Cranes, excavators, loaders, and lifts are examples of equipment that are frequently rented and used on construction projects. Despite their common use, there has been a fair amount of uncertainty as to whether the Pennsylvania Mechanics’ Lien Law permits the filing of a mechanic’s lien for rental equipment, which leaves companies without the protection that a mechanic’s lien can provide to secure payment. A proposed amendment to the Mechanic’s Lien Law and an ongoing appeal seek to end the debate.

Two recent decisions from the Superior Court of Pennsylvania raised doubt as to whether a rental equipment supplier could file a mechanic’s lien against a construction project in Pennsylvania. First, in R.A. Greig Equipment Company v. Mark Erie Hospitality, LLC, the lienor filed a mechanic’s lien for nearly $200,000 that was owed to it in connection with the use of a telehandler. In denying the lienor’s ability to file a mechanic’s lien for the rental and use of the telehandler, the Superior Court concluded that in order for an item to constitute “materials” under the Lien Law, the “materials” must both be (1) reasonably necessary and (2) actually incorporated into the improvement. Second, soon thereafter, the Superior Court followed the same analysis and held in Cleveland Bros. Equipment Co., Inc. v. Aracadia North Land, LLC  that a rented excavator was not “actually used in the building structure” and, therefore, not “materials” under the Lien Law. On April 23, 2025, the Pennsylvania Supreme Court granted a petition for allowance of appeal following the Cleveland Brothers decision.

One day after the Pennsylvania Supreme Court granted the appeal in Cleveland Brothers, the Pennsylvania legislature introduced House Bill No. 1319. Bill 1319 would amend the definition of materials to include materials and supplies of all kinds, “including rented equipment reasonably necessary [to and for] the construction of or incorporated into the improvement.” Bill 1319 passed the PA House in July 2025 and is now with the Pennsylvania Senate Judiciary Committee.

Ultimately, either the Pennsylvania legislature or the Pennsylvania Supreme Court may address the issue shortly. If you are a supplier of rental equipment, you should track both Cleveland Brothers and Bill 1319 because either one may significantly alter your lien rights. Similarly, developers, property owners, and contractors should be cognizant as their exposure on projects may expand if Bill 1319 is passed or Cleveland Brothers is reversed.

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