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Can a subcontractor file a lien on my property if he was not paid by the GC?

In a kitchen remodel, the general contractor hired a subcontractor to install the kitchen cabinets. The installer was responsible for damaging the cabinets and performing very poor quality work. He was given several opportunities to correct the issues but failed to do so. The result was the general contractor having to hire another installer to correct all the issues left at hand. When the general contractor informed the subcontractor that she was not going to pay him for removing the cabinets that he damaged (she actually went into detail with him and reiterated the list of failed items he was responsible for), he then started contacting me directly. We have no signed contract with him. We have actually incurred several hundred dollars due to the 4 week delay of the remodel project that resulted from his incompetence. Now he is threatening to put a mechanics lien on our home. Can he do this? And how can we bond a lien?

1 reply

Dec 4, 2019

Generally, yes - subcontractors are entitled to file a mechanics lien against the project property when they go unpaid for their work. However, there are a lot of factors in play in the situation above, so breaking things down further below should be helpful. In any event, this resource should be helpful: I Just Received a Notice of Intent to Lien – What Should I Do Now?

Subcontractor lien rights in Texas

Subcontractors are generally entitled to file a mechanics lien when they go unpaid by their customer - be that the contractor, another subcontractor, whomever. This is often true even when there's a dispute over their workmanship, or where there's a dispute over what they're owed. Of course, that doesn't necessarily mean their lien is valid and enforceable - an owner or contractor could certainly challenge the filed lien claim, and if the sub's work was defective and if payment on that lien isn't actually owed, that lien may be tossed aside. Further, note that there are notice requirements that Texas subcontractors must follow in order to preserve the right to file a mechanics lien. So, if those notice requirements weren't followed, even the most valid of lien claims might end up invalid and unenforceable. For more information on what notices a subcontractor must send, here's a great resource: Texas Preliminary Notice Guide and FAQs.

Texas general contractors must defend owners from subs' lien claims

If a mechanics lien is filed by a subcontractor, then the GC will have to defend the property owner in any suit brought on the lien claim. This requirement is created at § 53-153(a) of the Texas Property Code. So, if worse comes to worst, an owner can force their contractor to resolve the mechanics lien dispute.

Fending off a Texas mechanics lien before it's been filed

Until a mechanics lien is actually filed, there are limited tools available for a property owner to defend against a mechanics lien claim. But, identifying the flaws in the subcontractor's payment claim and threatening legal action in the event that the improper lien is filed can help to avoid its filing in the first place. This is especially true when done via attorney letter. In Texas, potential penalties for fraudulent or improper lien claims are high (as much as $10,000), so if a claimant is attempting to pursue an invalid lien claim, threatening to fight the lien may be enough to convince them not to go through with it. Of course, keep in mind that not every invalid lien claim will be fraudulent, and proving fraud can be an uphill battle. If a lien claim is ultimate filed, this resource should be valuable: A Mechanics Lien Was Filed on My Property – What Do I Do Now?

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