To perfect a construction lien, lienors who do not have a direct contract with the owner and are not performing subdivision improvements are required to serve a notice to owner. The warnings in the notice owner advise the owner to make sure subcontractors and material suppliers are paid before the owner pays the contractor, which protects the owner from being required to pay twice for the improvement. In other words, the purpose of the notice to owner requirement is to ensure that the owner does not pay monies to the contractor which should go to other unpaid lienors that remain unpaid. An exception to the rule that a notice to owner is required to be served by subcontractors and material suppliers not in direct contract with the owner exists where the owner and contractor share a common identity. Common identity would be determined by the court based upon the facts of the situation and has arisen in previous cases where the owner and contractor share the same principals, officers or partners. Where the owner and contractor have a common identity, the owner typically has knowledge of the obligations to the subcontractors and material suppliers in contract with the contractor.
