This customer who we filed a mechanics lien on had her attorney call us to offer a "final settlement" of $3000 LESS than what is owed according to her contract. If we don't accept her offer, we will have to go to court and Pay her legal fees. Need advice on how we can avoid this. She has breached her contract and her attorney says his client wants to come out ahead on this. We do not want to settle. Help!
First, it's worth noting that it's extremely common for an owner or their attorney to dispute a mechanics lien claim, and that's true even when there's nothing wrong with the lien filing. More information here: What To Do If Your Lien is Challenged?
What's more, once a lien is filed and the owner has notice of the filing, the next step is generally to negotiate payment for the release of the lien. And, if the other side thinks there's some flaw with the lien claim, they could try and argue that you should be paid less than what's owed. That doesn't necessarily mean that they're right, and a lien claimant can always counteroffer. Asking for full price, full price plus the cost of filing the lien, full price plus legal fees, etc. is common. Additionally, threatening to proceed with legal action - like with a Notice of Intent to Foreclose - might be effective for calling their bluff. More on getting paid after filing a lien here: The 4 Steps to Take After Filing a Mechanics Lien.
Finally, regarding attorney and court fees - Arizona's lien statute generally allows for a court to award legal fees, at the court's discretion, to the prevailing party. So, if the customer was successfull in challenging the lien claim above, then a court could award them legal fees - but it wouldn't be automatic, and they'd have to win the suit first.
If you think having an attorney to help advocate for you and negotiate on your behalf is something you'd like to pursue, here's a great place to begin that search: Top Arizona Construction Lawyers.