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Best way to proceed

New MexicoMechanics Lien

We are currently filing a lien on a property owned by the federal gov. leased by XTO. The company XTO sub contracted owes me 5500 dollars and refuses to pay. Is filing a mechanic lien the best course of action or how should we proceed. We delivered concrete to the location and the sub placed it at that location.

1 reply

Feb 5, 2021

There are a few things going on here. For one, when working on a tenant improvement, mechanics lien rights will typically be limited to the tenant's interest in the property. Further discussion on that here: Construction Lien Rights When a Project is a Tenant Improvement.

Additionally, note that federally owned land is generally not subject to mechanics liens. So, filing a lien against land owned by the federal government will typically result in an invalid lien claim. Instead of mechanics lien claims, Miller Act bond claims are usually more appropriate, when the project is bonded. Levelset discusses the Miller Act and bond claims on federal jobs here: The Miller Act Claims: What You Need to Know to Make a Claim.

So, with all of that being said: A lien against a tenant's interest might be available even where the land is owned by the federal government. And, it's possible the project is bonded and that a Miller Act claim could be available. Plus, regardless of lien or bond rights, legal claims will be on the table - and sending invoice reminders, Notices of Intent, demand letters, collections, or even something like small claims court or full on litigation could all be paths for recovery. And, naturally, consulting with a New Mexico construction lawyer could help identify the best path forward: Top New Mexico Construction Lawyers.

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