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Can I file a lien, and if so, on the contractors personal property or the project property?

ColoradoMechanics Lien

I'm an electrician and did a few jobs for a friend of mine. I wasn't an llc at the time but I am now. I found out that he does not have his GC license, also the remodel jobs were generated and overseen by another company, A-Line Contractors. They have both revised to pay for the work I've done. A-Line is now stating a reason, due to the notice of intent to lien I sent, that I misrepresented myself as a licensed electrician. I never did that. I have recorded phone calls discussing that very issue, and being told that they had a master electrician whom pulled permits for the jobs and would oversee them. To this point there are no complaints of quality of workmanship and a far stretch to produce one. My earlier intent notice was sent to A-Line for only 1 of the jobs, in the amount of $5276.54, for change order and out of contract work. This work was done by me, at the behest of the home owner, and both A-Line and my friend(who does have a registered LLC) were fully aware of. In fact that work was about 90% of my activity on the site, and involved many special instructions and guidance from each of them. Also documented in recorded calls and text messages. Even a call to A-Line re my concerns about being paid, to which I was told it"would be taken care of". I don't have any written agreements with either company, only calls and text messages over a period of several months. I believe, given their content, they will serve as sufficient verbal agreements? Should I, and can I, lien both? I'm owed north of $6500 combined, which includes $500 still not paid on the contract from the job I spoke of. Additionally, I feel the cease and desist letter I received from A- Line leans pretty hard into extortion territory, the way I interpret the law in Colorado. Given the threats leveled at my reputation and livelihood by "reporting me to the authorities " and sueing me for return of any monies paid to me, plus attorney fees, ×3, if I proceed in recording the lien. If my lien action is legal, a lawyer would know this, and I don't believe he would threaten such extreme action, knowing he can argue against its validity in court. Threats that so closely borderon illegal. I have a suspicion that the lawyer is maybe the son of a lawyer, using dad's credentials. I don't find anyone registered with the Bar with the same name, but with jr as a suffix. Not sure if it matters, save the fact that if I'm right, he's definitely breaking the law. I look forward to your opinion and thank you for your time. Ed

1 reply

Oct 28, 2021

Good morning. You filed a similar question earlier that I answered. 

A lien is filed against real property only. It is not a lien against personal property. The lien is filed against the real property related to the servcies. If this is several parcels, this may entail separte liens unless a blanket lien applies. Theintent to lien is also served to the GC. In short, you cannot file a lien against the contractor. You can only file a lien on the property which was improved. 

As I assume you understand now, always use written contracts. Always follow the terms of those written contracts and have a clear change order process in writing. A written contract is not a condition to a lien right. If you have oral agreements (what people mistakenly term as verbal), meaning it meets the elements of a contract, then that is enforceable. No attorney can advise on whether you have a enforceable oral agreement without listening to the communication and getting more facts. Moreover, communication by text can constitute a written agremeent. Again, there is no way any attorney can advise you on that without reviewing those texts. 

As to the cease and desist, to repeat what I stated before, it is impossible to say if this is extortion or actionable merely based on your allegations. An attorney would have to review this letter and provide an opinion and that is done once your attorney is hired. As a general matter, claiming that there is a basis to report you to authorities (I have no idea as to what viable thing they can report), that they will sue and the like, sound like standard demands and not extortion. What matters is if these are viable claims and claims related to treble damages (3x) would require review of the letter as treble damages are only viable for certain claims. Yet again, another thing for your attorney to review or you can act as your own attorney and make that determination. 

Finally, as to the clamed attorney, either this person is licensed as an attorney or they are not. They could be licensed is another state. I have no idea. However, this really does not matter in the context of what you can do other than filing a cliam with the bar against this person for unathorized practice of law if that is true. It has no real impact on whether any of their claims as to a suit, treble damages, and so on are viable. 

If you believe your understanding of the law is correct and don't want to retain an attorney for legal advice, then proceed to file a lien and file suit to try to collect. As I noted earlier, the cost and complexity of a lien foreclosure suit is likely too much and too time consuming so you may want to file suit in small claims. Once that suit is filed, the defendant will then determine if they want to countersue and if that pushes the claim to either county or district court. 

It seems that hiring an attorney for an hour or two for advice and possibly responding to this demand makes sense but that is entirely your choice. I hope this works out in your favor. 

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