If I am forced to file a Mechanics and Materialman's Lien on a builder that was not paying and they finally paid. Can I bill them for the cost of having to file Lien along with the recording fees to release claim??
1 reply
Jan 30, 2020
It's extremely common for a lien claimant to want to bill their customer for the cost of pursuing a mechanics lien. Ultimately, those amounts may be recoverable - but the method of recovery is important, there.
A Texas mechanics lien cannot include amounts that don't relate to the value of the work provided. Meaning, the cost of filing a lien, attorney fees, interest, etc. shouldn't be included in a Texas lien claim. At the same time, that doesn't mean those costs can't be recovered.
Most mechanics liens are resolved before a lawsuit becomes necessary - meaning, the dispute is often negotiated and settled out of court. And, in those negotiations, it's entirely possible, if not common, for a lien claimant to push for their customer to pay the costs of filing the lien. So, that's one way the amounts might be recovered. Further, if the dispute does end up in a lien enforcement suit, it's pretty common for courts to award costs, fees, interest, etc. to the prevailing party. So, if a lien claimant has to pursue their claim in court and wins, then the amounts might be recovered that way.
I hope this was helpful! For further discussion on the topic, here's a great resource: Can I Include Attorneys Fees in a Mechanics Lien?