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Can we file a mechanic's lien if the Homeowner never signed the contract?

We are a General Contractor in Arizona. We completed cosmetic repairs for a Homeowner. The Homeowner was constantly traveling, and rushing out of town, so he never signed the contract. He did however sign a credit card receipt to pay for the job in full. We completed the work in December 2020. The Homeowner filed a dispute with his credit card, and the money has been rescinded for 90 days, until they make a determination. The Homeowner is blaming us for loosening a cabinet that fell off the wall. We did not install this cabinet, however we did note that it was loose prior to working in the bathroom where the cabinet was located. Regardless, the contract is complete, and now we are out the entire value of the contract waiting for the credit card company to conduct their "investigation" into their cardholder's claim.

1 reply

Jan 9, 2021

You probably do not have lien rights. First, you need to have sent a preliminary 20-day notice, or the lack of signature is irrelevant - you cannot record a mechanic's lien unless you have sent a preliminary 20-day notice. Second, the issue is not whether the property is residential but whether it is owner-occupied residential. If the house you are talking about is owner-occupied residential (and it sounds like it is), then you need a signed contract with the owner to have mechanic's lien rights. It sounds like its possible that you have a signature on a credit card slip, and if you do you might have a shot. But that question has never been answered by an Arizona court so unless there is a lot of money at stake and you want to hire a lawyer to make that argument in court (which would be very expensive) it's probably not worth fighting the issue. All that said, it sounds like you still have a very strong case for breach of contract. While a written agreement with the owner is required to assert mechanic's lien rights, you do not need a written contract so sue the owner. It's just that debt the owner owes you will not be secured by a lien on the property. It does not mean the money is not owed.

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