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Contractor wont pay supplier for product even though I paid him in full for materials & labor?

TexasPayment Disputes

We hired a landscape contractor to put crushed granite & flagstone in our backyard. We paid him (by check) for the first part of the down pay on work. And when he finished we paid by check the final bill. He provided us with an invoice stating the materials, labor, My 2 check payments and final bill paid off. Contractor used a company in town called "Texas Rock & Flagstone" to purchase our materials. The job was finished on June 14 this year. Yesterday, I received a letter form the rock & flagstone company stating they never were paid by the contractor & that I have till October to pay them for the rock & flagstone or she would turn 'Me' into collections. I called the rock place, she said the contractor told her "I wouldn't pay for the job", she also told me she could put a lein on my house. I told her I paid for the entire job & that i have to both checks from the bank where I paid the contractor in full . The rock lady also sent me the 2 invoices that are billed to the landscape contractor. She also told me the landscape contractor had already owed her $600 from a previous job. What is my legal right in this matter? I keep trying to contact the contractor and he wont answer my calls. I traced down his address the rock lady had on his invoice, it was an apartment & they said this guy ran out on them a long while back and owed them a lot of money.

1 reply

Sep 16, 2019
When a supplier has provided material for a Texas residential construction contract, that supplier may be entitled to file a mechanics lien if they go unpaid for their work. But, to preserve their ability to file a mechanics lien, that supplier must send certain monthly notices. Plus, if the property where work is being performed is a homestead, there are additional contract requirements which, if not met, would prevent the filing of a valid and enforceable mechanics lien (more on that here). Regarding your legal rights - you'll generally have plenty. Note, though, that it can be hard to procedurally or officially block a mechanics lien before the lien is actually filed. But, sending legal warnings or even threats noting the alleged issues with the filing and what legal actions will be taken if a lien is filed can help to fend off improper lien claims. This is especially true when sent via attorney letter. Once a mechanics lien is filed, though, if payment was made to a contractor in full, but that contractor failed to pay their debts - generally the owner can bring them into the dispute if a mechanics lien or other claim is actually filed. In fact, under § 53-153 of the Texas Property Code, an original contractor must defend the owner against lien claims made by the contractor's subs and suppliers. So, it's also the contractor's problem if a lien gets filed. Further, once a mechanics lien is filed, the owner always has the option to challenge the lien's validity or to potentially bond off the filed lien. To best understand what rights might be available and what actions might be the most effective, it'd be helpful to consult with a local construction attorney. They'll be able to review your situation in-depth as well as any relevant communication or documentation, then advise on how best to move forward. For more information on how owners respond to mechanics lien threats and/or actual lien filings: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now? (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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