This customer has never paid. It appears I sent a payment reminder but no pre-lien notice. Do we have any recourse?
1 reply
Aug 18, 2020
In Arizona, all parties (other than wage laborers) must send a preliminary notice in order to retain the right to file a valid and enforceable mechanics lien. In order to be fully protected, the preliminary notice must be sent within 20 days from first furnishing labor or materials to the project. If it is sent later it can still be partial effective, but the late notice only protects the value of the labor or material furnished within the 20 days preceding the late notice, and the labor and/or materials provided thereafter.
If the work was completed more than 20 days ago, and no notice was provided, it is unlikely that any lien right would be available. However, that doesn't mean that payment cannot be obtained. There may still be an opportunity to file a lawsuit (whether for breach of contract, violation of prompt pay laws, or some other cause of action), or the account could be sent to an outsourced collections firm or the debt could be sold.
Depending on what information was included on the payment reminder, and to whom it was sent, it may be that it could function as a preliminary notice. However, there is statutorily required text that must appear on a preliminary notice, so it may not be likely that a payment reminder would meet the requirements.