I'm a sub-contracter and we haven't been paid on our Pre-liened project that is 75% complete. The customer has stopped paying us and we have stopped doing the work. What can we do? Can we still file a Mechanics lien on what we are owed?
You can file a mechanic's lien for what you have already earned for labor, services, materials and equipment furnished. This may be either the reasonable value for these services and materials or the amount agreed to between the parties, whichever is less. Keep in mind, though that you may only file a lien once you do not plan to perform any further work on the project. Performing further work would invalidate the lien. But this is likely not an issue as it sounds like you do not plan to perform more work unless you are paid.
If you do record a lien, remember your deadlines. You have 90 days from recording the lien to file an action to foreclose the lien if you are still not paid.
Do not act on the information contained herein without seeking the advice of licensed counsel. The information presented here is general in nature and is not intended nor should be construed as legal advice for any particular case or client. The law is complex and the specific facts of your situation can cSee More...See More...