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Can we file a lien on one of our Iowa customers

IowaMechanics Lien

We are a bathroom remodeling contractor. We have a client in Iowa who signed her contract 9/9/20 and the install date was 11/11/20. This job was a multiple-day job and cust was ma that installer was not on time the first day so she cancelled the job, cancelled her financing and refuses to allow us to reschedule or install. All materials are custom and are in our Iowa warehouse. Since she cancelled outside her 3-day right of recession, and this date is noted on her contract, right above the customer's signature, can we file a lien on this customer? I was told to file a lien in 'Iowa' we must be within 90 days of the date materials were furnished, however, materials were NOT furnished because when we arrived 'late' to customer's home on 11/11/20 she would not let us in because we were not late. Not a good reason to cancel. We were not that late but she was obviously a stickler on time. Can we file a lien on this Iowa customer? Dec 9 will be 90 days since she signed contract OR do we count 90 days from her install date, 11/11/20, the date we arrived with the materials and she refused to allow us in the house to install because we were late. PLEASE LET ME KNOW? Thank you for your help.

2 replies

Nov 25, 2020
Iowa law is unsettled whether your circumstances allow for filing a mechanic’s lien. There are cases where rejection of materials upon their delivery to a job site was sufficient to allow a mechanic’s lien, but others that say the supplier must have relinquished control of the materials to the owner or general contractor or in some cases actually installed the materials before lien rights are available. The fact that these are custom materials helps the argument that you’re entitled to a lien. So I suggest you file a lien and see if the owner challenges it – the benefit is that the owner might pay you without fighting, but your risk is the owner challenges it and the court determines your situation is not proper for a mechanic’s lien, in which case you would have to file a lawsuit. To be safe, you should file the lien before Dec. 9. Let me know if I can help further. md@brownwinick.com
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Dec 7, 2020

As a general contractor on a resdential project, you were required to file a notice within 10 days of starting work. If you do no not file that notice, you have lost your right to file the lien. You still have a breach of contract claim against the owner, but your lien rights are likely gone.  

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