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Can a lien be placed on property without contract or proof of work done and agreed to

Contractor was supposed to concrete off tube going into pit. He decided to excavate my yard to get at the pipe that way. There was no way to seal it off that way as he ripped out the piping that went to basin to seal off. Then he proceeded to still not bring the cement to do as I asked from the start, but twice brought plugs of various sizes that didn’t work. He’s wanting me to pay him $1500 for all of this when no fee was discussed as he said don’t worry I got ya covered. And what I requested to be done was never even done. There’s still water pouring in my pipe. He told me tonight he’d charge me another $500 to come and actually do asI requested from the start. Which I told him no to now.

2 replies

Jun 15, 2020

A contractor doesn't need a written contract in order to file a mechanics lien on an Indiana residential property. And, it's common for mechanics lien claims to be filed even if there's a dispute over workmanship or if there's a dispute over what's owed for the work. But, that doesn't necessarily mean the lien claim is ultimately valid. Mechanics lien rights are generally available to those who have permanently improved real property and gone unpaid for their work. But, lien rights are really only available to the extent that the claimant is owed payment. So, if the contractor has gone outside the scope of work and performed unauthorized work, that work shouldn't be lienable. And, an improperly filed lien could result in the lien being tossed aside or could even result in damages if the lien is fraudulently filed. Though, not every lien mistake results in a fraudulent lien. Granted, when there's no written contract, it's hard to argue what the scope of work was supposed to be. Plus, if you ended up authorizing the work at some point during the job, then you could be responsible for paying for it. So, without a written contract or some other documentation showing what the scope of work was supposed to be, that might be a bit of an uphill battle.

Fending off a mechanics lien claim before it's filed

It can be hard to block a lien claim from getting filed. But, letting the claimant know that their claim is flawed (or even bogus) could be a good start. If they know that their lien would be invalid, and if they know you're prepared to fight the lien tooth and nail, they may be more hesitant to file that lien. So, sending a demand letter requiring the claimant to stand down could be effective - especially when sent via attorney. This article should be useful: I Just Received a Mechanics Lien Threat – What Should I Do Now?

Disputing a filed lien

If the lien does get filed - there will be options, too. Officially challenging the lien claim could be an option. Though, filing a legal claim to dispute the lien could be expensive. And, simply threatening to challenge that lien claim could be enough to push the claimant to release their claim. Additionally, bonding off the lien could be an option. But, that won't make the claim disappear (it will just remove the property title from the equation) and will typically be pretty costly. This resource should be valuable: A Mechanics Lien Was Filed on My Property – What Do I Do Now?

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Oct 1, 2020

I am attorney Nick Podlaski of Podlaski LLP (260-782-1712). Sounds like a breach of contract issue and that this contractor violated a number of consumer protection statutes, including the Indiana Home Improvement Contract Act. Give me a call to further discuss your legal claims.

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