Hello! we're a subcontractor that is awaiting payment for a project that has been completed, they say they are withholding payment till we fulfill the warranty for two older projects that were done for them last year . since we never received payment a lien was filed. the issue is that it was filed incorrectly and for the wrong amount. A notice of intent to lien was not filed before the lien was filed, this is for the state of Colorado in weld county. after talking to the company they then decided to pay us only what was asked for on the lien, but said that if we removed the lien they would send us the full check, instead of just the check for the lien. after trying to work things out they refused to accept the release form that we had. this was done through a third party company before signing up with level set. at this point they refused to send the check to us but instead sent it to their attorney to hold in escrow also stating that any fees incurred would be deducted from the check, until we remove the lien and repair the buildings in question. What would be the best course of action and the next steps necessary to find a solution to this issue.
I am sorry for the issues. Without reviewing the contract and getting more facts it is not possible to provide legal advice on the best court of action much less the steps. The contract will provide duties, rights, and obligations and that is the first document that must be reviewed to determine your options. Does the contract allow for withholding for these "fees"? That is too vague to undertand what those fees are and, again, the contract would need to be reviewed to know for sure.
Essentially, and I know you may not want to hear this, but you need to hire an attorney so they can provide advice and hopefully resolve this issue. Unless the amount due is in the five figures, foreclosure of the lien is not likely the best process and that is extremely complicated as it requires a district court lawsuit that may include many parties depending on this project.
Reach out to Colorado construction attorneys for a consultation as soon as possible.