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Do I have grounds for filing a lien

IndianaLien on FundsSlow Payment

I am an architect and I drew a plan set for a common homeowner. The county in Indiana he lives in required that they be stamped by an engineer. I had my structural engineer look over the project and stamp the drawings. I operate my design company as a DBA. Long story short... I sent the stamped drawings to the customer nearly 2 months ago and since them he wont return my phone calls, emails, etc... I sent an invoice through the mail and via Paypal with no return. I've already payed my engineer for looking them over and stamping them. So can I file a lien on him or his property? The address I sent them to is owned by a different person who I believe to by a relative...possibly the inlaws of this guy. I didn't a people finder search on him and discovered that he has been sued many times in the past and there have been several liens filed against him before. So its becoming pretty obvious that this guys isn't going to pay me. My question is should I file a lien, take him to small claims court or so suck it up and loose the money that is owned to me. The bill to him was for just $1,067.35. I quoted the project to the gentlemen and he agreed to the price. I didn't take a down payment and we didn't sign a contract.

2 replies

Feb 18, 2020
Design professionals are generally entitled to mechanics lien rights in Indiana, pursuant to § 32-28-11-1 of the state's mechanics lien statute. So, if work was done for an owner which led to the improvement of their property, then lien rights should generally be on the table. As mentioned in the following article, mechanics liens work in a number of ways and can do a great job of compelling payment: How Do Mechanics Liens Work? 17 Ways a Lien Gets You Paid. And, considering a potential result of a lien filing could be a lawsuit or even the foreclosure of their property - owners usually can't ignore a lien filing. Before pursuing a lien claim, though, it might be helpful to send a document like a demand letter or even a Notice of Intent to Lien. A Notice of Intent to Lien lets recipients know that the payment dispute is serious and that, if push comes to shove, a lien claim will be filed. And, that's often enough to force payment all by itself.

Which recovery option is best for unpaid invoices?

Ultimately, every situation is different - and it's up to the claimant (and, potentially, their attorney) to suss out which recovery option will be best for their particular circumstances. As you mentioned above, small claims court can be a streamlined option to recover payment without the headaches of traditional litigation. I will mention, though, that pursuing a lien claim will often be favorable to small claims, as discussed here: File A Lien Or Go To Small Claims Court? For more information on Indiana mechanics liens, these resources should help to determine if that's a remedy that might be worth exploring: - Indiana Mechanics Lien Guide and FAQs - How to File a Mechanics Lien in Indiana – Step by Step Walkthrough
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Oct 1, 2020

I am attorney Nick Podlaski of Podlaski LLP (260-782-1712). Sounds like a breach of contract issue. Give me a call to further discuss your legal claims. 

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