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Can I file a mechanics lein against my customer and his customer?

MichiganCollections

Hi Experts. My name is John Micheli and I am the owner of AOM Engineering Solutions. I purchase LED lighting fixtures for a customer of mine (Digitalight - Stuart, Florida) to install at two of his clients (Allcon - lights where used on a military site and Hardwood Prairie both are in Wisconsin). Digitalight supplied the fixtures to both of these clients and got paid, but did not pay my company. The work was completed in April of this year. I essentially financed the purchase of the fixtures and he resold them to his client. I have a purchase order with the material supplier and Digitalight. When I asked him for payment, he told me that he used the money he used the money for some materials he needed for some other jobs and would pay me by the end of April 2019. I have a list of the jobs that the money was going to be used. His customers include Quest Laboratories and US Reality. It is now December 18, 2019 and he still has not completed the work that required these fixtures and I have yet to be paid my $23K ish money. Can you please give me some advice?

3 replies

Dec 18, 2019
Hi John, I'm sorry you're in this position. There are always a few bad apples out there who take advantage of people's trust.  I don't believe you have construction lien rights in Michigan, and I'm not certain of Wisconsin lien law (which is where you shipped your materials). If you were furnishing to a military (public) project, you might have rights under a payment bond, but you'd need to know more information about the project and the general contractor. That being said, I think you do have contract rights under your PO for breach of contract (non-payment),  and maybe a claim under the Michigan Builder's Trust Fund Act. I would some more facts to know if the Builder's Trust Fund Act applies. But in either case, Digitalight owes you for the materials you furnished under your PO. If your PO had terms and conditions, you might also be able to recover collection costs. If you'd like more information, I'd be glad to talk further. Peter Cavanaugh / Tel: (248) 543-8320
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Dec 18, 2019
Hello John, I agree with Peter. The situation you described sounds common and pretty straightforward. The funds owed to you are certainly collectible and most likely, legally enforceable. Unless you've already enlisted assistance in the matter, please consider my firm at your disposal for this, or any other challenging A/R dilemma. Mike Ross 512-275-6412
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Dec 20, 2019
John, I would recommend using a certified commercial collection agency who is a member of the Commercial Collection Agencies of America who is license and bonded to collect in Michigan.  Feel free to email srauch@rauchmilliken.com or call 800-237-8430 to get a free quote on your collection options.  Best regards, Steve Rauch
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