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As a subcontractor, what are our options for filing a mechanics lien on the property we provided services?

Illinois

We are and Illinois Corporation, hired as a subcontracted to provide services for a customer based in Florida. Our customer asked us to provide services at a location in Crown Point, IN. Those services were completed on September 27, 2022. The Florida based customer has not paid us and is not communicating with us any longer. We are looking for direction on how we can recover our loses in the $4500.00 range.

1 reply

Jan 11, 2023

You ask how to collect from a Fla.-based company for construction work performed in Indiana. You are owed approximately $4,500. 

First, there are 2 ways to collect

Mechanics Lien within 90 days of the last day of work in Indiana (confirm with Indiana Counsel before taking action - 90 days is the relevant period in Illinois, and Indiana may differ). Once perfected, the lien must be foreclosed in the Indiana county in which the work was done.

Breach of Contract action against the employing company. Whether you have to sue in Illinois or Florida, and whether you have to seek a remedy in Court or via Mediation or Arbitration, depends on the terms of your contract with the company (if any).

Second, which you choose depends on the timeline and the events leading up to this claim. If you are still within the Indiana limitations period, for instance, you may file as to the property on which work was performed. Once your lien claim has been perfected (again, check Indiana law), you will have to foreclose inthe county in which the property is located.

Third, while there are many other considerations, it is beyond doubt is that collection costs here could exceed $4,500. But, even that is in doubt. The owner of the property where work was done may demand you be paid by your employer, for instance - victory without having to foreclose the lien, etc. Many things could happen.

Consider your priorities as you move forward with this claim. Best of luck!

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