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Can I include a damage invoice in a mechanic's lien in Indiana?

IndianaMechanics Lien

We supplied equipment rental on a commercial job in Indiana. The equipment was damaged and we have billed them almost 10K in result. Can that amount be included in the lien? I did review the Indiana lien law faqs, but it was vague on this topic.

3 replies

Sep 1, 2021

Mechanics lien rights are generally available for work improving the project property, and lien claims must generally be tied to amounts owed for the improvement to the property, itself. While a customer may owe you money for damages to machinery, because the damage to the machinery didn't improve the property - I'd assume that lien rights won't be available for amounts relating to broken machinery.

That being said, it might be useful to consult with an Indiana lawyer on the matter. Even if they come to the same conclusion that a lien might not be the most appropriate option, they can help you review the situation and assess what other legal theories may well be suitable for recovery, such as a breach of contract claim Plus, they could help to write a demand letter , too. 

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Sep 20, 2021

If you supplied materials or labor you have a basis to file a lien. Give my office a call 260-782-1712. There are strict timelines that are driven by statute and govern whether or not you can actually file a lien at this point. I look forward to speaking with you. Best, Nick

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Sep 20, 2021

I was remiss in not stating per statute, if you are a lessor of construction tools or equipment you also have a basis for a lien depending on the facts and circumstances. 

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