We sent a SN release. The GC has not received it although the owner has. We have provided the GC with a PDF of said release. However, the GC is stating that they will not release the payment until they receive a "wet" copy of the SN release. My questions is, can they legally hold our payment if we have released the lien?
It is unusual (but not unheard of) request to ask for the "wet" signed version of the stop payment noice release. Sometimes public entities require "wet" copies but generally electronic copies should suffice. But rather than give the stop payment notice release, it would have been a better idea to only give a conditonal waiver and release with the promise to deliver the stop payment notice release shortly after conformaiton of clearance of payment. In your situation, you can argue this either way -- perhaps it is most efficient to overnight a wet release?