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Can I be sued personally for filing a mechanics lien?

We filed a mechanic's lien, a law firm sent a letter to dismiss the lien and the letter refers to "reserving all claims against JDM, it's principals, agents and others responsible for the lien filing". I think i am the "others" the letter makes reference to, and I want to know if a claim may be made against me personally?

1 reply

Mar 4, 2020

It's extremely common for a customer or property owner to react poorly to a mechanics lien claim. Rather than thinking rationally, they may have an emotional reaction and demand that their lawyer make the lien claim disappear - and, many attorneys will resort to legal threats that might not be particularly valid or enforceable when trying to strong-arm a claimant into releasing their lien. So, just because an owner or their attorney challenges a lien claim doesn't mean there's necessarily an issue with the filing, and it doesn't always mean that legal action is imminent. More on that here: My Lien Was Challenged: What Do I Do? What's more, it's extremely common for an owner or customer to claim fraud when they disagree with the contents of a mechanics lien. However, keep in mind that there's a difference between fraud and an honest mistake. And, if a claimant hasn't overstated or exaggerated their claim, then proving fraud on a mechanics lien is an uphill battle for an owner.

Personal liability for a mechanics lien claim?

By and large, a person who works for a company will not be personally liable for that company's actions - particularly when the claims against the individual are made for actions taken in the scope of their employment. This is true for filing a mechanics lien, just as it's true for other causes of action. Corporate structures (like an LLC, Corporation, S Corp, Limited Partnership, etc.) limit the liability of employees who act within the capacity of their employment. More on that here: Corporate Veil 101 | The Strategic CFO. If an individual at a company signed a false document, lied while swearing an oath, or undertook some other illegal activity, then someone might be able to claim that the individual should be liable. But, if none of that took place, and if any and all statements, documents, information, etc. was true to the knowledge of the party who signed it or swore to it, then that'd seemingly be a non-starter. With all of the above being said, keep in mind that the validity (or invalidity) of a particular claim doesn't change the fact that a plaintiff can ultimately name whoever they'd like in a lawsuit. So, it's possible that they could bring a lawsuit against whoever they want (and, that's generally true for all legal claims). However, weak attempts at piercing the corporate veil (i.e. holding an employee or shareholder liable for their company's actions) are usually tossed aside pretty easily.

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