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Can a labor lien be recorded for breach of contract?

Louisiana

We are a landscape maintenance company. Most commercial customers are bound with annual contracts that auto-renew. In this case apartment complex (customer) cancelled contract incorrectly. We are researching the answer to whether are not this is a candidate for recording the balance of the contract, not supported with actual labor provided. Especially since rent enforcement has/had been waived by Covid. Is this still true?

1 reply

Jan 12, 2021

Mechanics liens are generally only appropriate to the extent that work has been performed but not paid for. That gets to the heart of mechanics liens, too - a mechanics lien is a special remedy available to ensure those who permanently improve property get paid what they're owed. But, if work wasn't performed giving rise to the unpaid amounts, a mechanics lien probably isn't the best or most appropriate option.

That doesn't mean that other recovery options aren't on the table, however. When a customer has improperly terminated a contract, a breach of contract claim may well be appropriate, among other potential claims. And, recall that simply threatening legal action, like with a payment demand letter, could lead to payment as well.

For more information about Louisiana mechanics lien claims and when they might be most appropriate, this page should be helpful: Louisiana Mechanics Lien Guide and FAQs.

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