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Contractor was paid by insurance company. Can he put a lien on my house if I don't meet his demands for more money?

TennesseeMechanics Lien

I have a rental house. The tenants called me about a water leak they caused and told me they contacted a water mitigation company to clean up the damage. This work was done before I was notified of the water leak. The contractor tried to intimidate me into signing a contract and I refused. I told him to have the tenant sign it since they were the ones that contacted him. The contractor did no work after the initial water mitigation. My homeowners insurance company paid the contractor $15,331.42 for their work. Now the contractor is threatening me with a lien if I don't pay him $5,089.14 more. He has been harassing me and is now sending me invoices for payment. Can he put a lien on my house after he has been paid? I contacted my insurance company and they said the contractor and the claims adjustor worked together to negotiate the payment amount of $15,331.42. Please help me!!

1 reply

Mar 31, 2022

In order to properly answer your questions, more information is needed. When the contractor accepted the insurance payment, how was the payment defined, i.e. full payment, p[partial payment, etc.? Did the Contractor sign anything in exchange for the payment? do you have copies of the check from the insurance company and anything the contractor signed? if so please send me copies to my email address, beauhammet@hammetlaw.com. Do you know how the insurance carrier determined the amount it paid? have you submitted the contractor's request for money to the insurance carrier? When was the initial water mitigation work performed? was it done correctly? how much more had to be performed in order to complet the job? I assume the contractor did complete the work. I not, why?

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