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Does residential renovation subcontractor have a lien?

Subcontractor who residential property owner doesn’t even know exists sends to the owner a Notice of Non-payment, then a Notice of Lien. Does subcontractor on residential renovation have lien rights? Notice of Lien is dated 8/10/20 for work last allegedly done in April 2020. If lien is filed, is it defective as untimely? Is unidentified subcontractor exposed to suit for damages? Thank you.

1 reply

Aug 18, 2020

Generally, whether not a property owner has any direct relationship with a subcontractor on a project in Tennessee, the subcontractor may be able to file a mechanics lien to secure payment if the requirements for a lien are met. However, there is a big caveat here, that Tennessee specifically does not allow a subcontractor to file a lien against a residence. Notwithstanding the foregoing, if the project is not technically residential, Tennessee is one of the few states in which a contractor may have multiple (recurring) notice deadlines in order to retain his/her lien rights. In Tennessee, a Notice of Non-Payment must be provided to the property owner within 90 days of last day of each month in which labor and materials provided. For example, if labor was provided on April 3, the notice deadline for that work is 90 days from April 30. However, if work was performed in multiple months, separate notices are required for each month unpaid services or materials are provided. The deadline to file a mechanics lien in Tennessee for a party other than the general contractor is 90 days after the completion or abandonment of the project. So, there are multiple potential avenues to dispute a lien: 1) subcontractors are not allowed mechanics lien protection on residential projects, and 2) there is a strict 90 days deadline from the end of the project by which a mechanics lien must be filed. If a lien is filed when not appropriate, there may be consequences for the lien claimant, including an action for damages sustained due to the invalid lien.

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