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Can my sub sue me even though builder did not pay me for their work?

OklahomaBack ChargesConstruction ContractLawsuitMechanics LienPayment Disputes

I am a GC. Builder refused to pay me so I can pay my sub. Builder refused to pay because someone damaged a fireplace flute but she could of used my liability insurance to fix? Both sub and I have filed mechanics lien on property. Builder and sub exchanged messages and builder kept telling sub to wait and then refused payment. I am at loss on what to do. Sub did not install in some right areas and builder backcharged for error but sub still filed a mechanics lien in full amount instead of what builder initially claimed. There is no contract. I received a letter from an attorney telling me to pay sub. Do I need a lawyer?

2 replies

Mar 16, 2021

The quick answer is that if you are getting sued or threatned to be sued, it's always best practice to enlist the help of a lawyer. While a letter from an attorney demanding payment isn't the same as a lawsuit being filed, it's part of the progression heading in that direction. Getting the help of a local attorney who can look at your specific situation, documents, and evidence supporting the work and dispute at issue can go a long way towards getting you set going down the right path.  

Whether or not a lawsuit, or a mechanics lien is appropriate is a different question. Generally, parties in Oklahoma who provided labor or materials for the “erection, alteration, or repair of an improvement” are entitled to a mechanics lien if they are not paid for such work. A dispute over workmanship or certain back-charges generally doesn't impair the ability or right to file a mechaincs lien, but may be relevant to the amount the lien secures.

In most cases, failure to receive payment from higher up on the chain doesn't completely excuse the nonpayment of parteis below. Pay-if-pay clauses may potentiall be enforced in Oklahoma if they are explicit in the contract, but otherwise, the prompt payment requirements likely control in the absence of other specific contractual language otherwise.   

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Mar 16, 2021
Yes they can sue you, hiring an attorney would probably make a lot of sense since you have competing rights and obligations.
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