I filled a lien for work I performed without being paid. Now an attorney has contacted me because the house has been sold and wants me to sign a release or he is filing a lawsuit
Yes, it's possible that a mechanics lien claimant could find themselves in a lawsuit if the owner contests the mechanics lien they've filed. Granted, it's common for owners to dispute mechanics liens against their property, regardless of whether there's actually an issue with the lien that's been filed. More on that and other lien challenge considerations, here: My Lien Was Challenged: What Do I Do?
Further, note that as long as you followed any and all necessary requirements, a Kentucky mechanics lien claim will still be effective against purchasers. That's laid out at § 376.090(1) of the Kentucky mechanics lien statute. So, know that the sale of the property won't block the chances of recovery, in and of itself (though, issues with the claim itself could undermine the ability to recover).
Recovering payment after a lien has been filed
Finally, keep in mind that mechanics liens are powerful because they threaten the owner's title to the property. If your lien was filed before this purchaser's mortgage, it should provide serious leverage to make sure you get paid. Even if it wasn't filed prior to the mortgage, no new owner wants to face a lien claim. And, the seller was likely legally required to notify the purchaser of the existing claim against the property. Plus, that's also something the title company should have found in the process of the sale. Meaning, there should be a number of different parties who want to make sure the lien goes away - the seller, the purchaser, the mortgage company, and the title company.
Bringing all of those parties into the dispute could help to make sure that someone ultimately pays what you're owed. So, sending notice of the lien claim to all parties should be a useful step. That way, the seller, title company, and mortgage company all know about the matter and know they're not necessarily off the hook. At that point, it's typically time to negotiate payment of the claim. Generally, they'll want to resolve the issue as quickly and cheaply as possible. And, since the fastest way to make a lien claim go away is to have the claimant release their own lien, them making sure you're paid should be one of the easiest ways to proceed.
If others aren't taking the claim seriously, threatening to enforce the lien with a Notice of Intent to Foreclose may turn up the heat. And, of course, enforcing the lien is an option as well.
Additional resources
If you're concerned about the threat of a lawsuit, it'd be helpful to have a Kentucky construction lawyer in your corner. You can begin that search here: Top Kentucky Construction Lawyers. Additionally, this article might be helpful in determining what your next steps should be: The 4 Steps to Take After Filing a Mechanics Lien.
The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the helSee More...See More...