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Can my brother be sued because a former client did not pay their vendor?

Hi! I have a question, it’s for my brother. My brother used to run a construction business, and recently shit it down as of December 2019. On the last job, the house he worked on wanted an updated installation job, that my brothers company was able to fulfill, so he introduced his clients to a vendor that would supply what they need. Well the installation was done, but the client never paid the vendor. Now the vendor is going after my brother with a Mechanics Lein claiming he has obligations to pay them because he established the relationship. Do they have a legal ground to stand on? The client also never paid my brother, they walked off the job, the minute they were unable to pay.

1 reply

Jun 10, 2020

Mechanics lien claims are only available against the project property where work was performed. Project stakeholders other than the property owner cannot face a (valid) mechanics lien claim against their own property for payment disputes on the project. It's possible for baseless mechanics lien claims to get filed, sure. But, it's illegal to file improper and fraudulent lien claims, particularly when the land being liened wasn't subject to the project at all. So, if the vendor was unpaid for their work at the client's house, the vendor might consider filing a lien against the client's property since that'd be a more appropriate use of lien rights. Further, if the vendor wasn't even hired by your brother, your brother has no obligation to make sure the vendor gets paid. That's between the vendor and the client, and the vendor may well be able to pursue a lien claim or legal claims in order for them to get paid. Finally, if your brother hasn't been paid for his work, keep in mind that there are recovery tools available - and that might be worthwhile even if the business has been shuttered. Options like invoice reminders, payment demand letters, legal claims (like breach of contract), or even sending the debt to collections could lead to payment. And, consulting with a Massachusetts construction attorney could be useful for deciding what options make the most sense for recovery.

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