I am landscape contractor working directly for a home owner. After completing the job we sent the invoice. The owner informed us by letter that since we sent the invoice late, he would be paying in full but in $3k increments. His second letter he said he would be adjusting the bill because of things he says were done incorrectly. Then a third letter claiming damage to the property, which is not true. Should we file in small claims court or file mechanics lien?
I would file a lien because it will provide you with leverage and secure your claim. If you file a lien and then demand payment, there is a good chance this can be resolved without filing a legal action.
If the homeowner is willing to pay in $3,000 increments and needs to do that because of financial concerns, I would strongly consider agreeing to such a payment plan, as long as they pay the full amount and withdraw any claim for what they say is nonconforming work.
It depends upon the size of your claim and the date you last performed services. If you are within 90 days of last performing services, you can file a lien which is a very powerful yet affordable method of getting paid. If you can file a lien, you should. You can also immediately file a lawsuit to collect. Whether you can file in small claims court depends upon the size of your claim. If your claim does not exceed $15,000 you can file your suit in Magistrate Court (a/k/a small claims court), which is less expensive and usually muh quicker than the higher level courts.
You should do both. However, you have a strict time limit in which to file your lien. Also, lien filing is not simple and a lot of contractors make mistakes which voids their lien. Give me a call if you would like to hire a lawyer. Josh Stone, Stone & Bellus, P.C. 770-390-9950. Thanks.