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How can a supplier file a lien on my property for an agreement reached with a general contractor?

OhioMechanics Lien

Anonymous Contractor

I had work done on my building by a general contractor. He completed the work and as part of a final payment signed a lien waiver. Now a paint supplier that I have never heard of filed a lien on our building saying the subcontractor never paid them (even though we paid the subcontractor). Many questions but: 1. How can a supplier who I didn't do business with file a lien on my property? This is between the supplier and subcon 2. How can I get the lien removed? Thanks!

1 reply

Matt Viator

Construction Lawyer

Levelset Admin at Levelset

| 1,007 reviews

Apr 21, 2020

Ohio subcontractors and suppliers are entitled to mechanics lien rights even when they've been hired by someone other than the property owner - and that's actually true for every state. Ultimately, states have decided that mechanics lien rights are necessary to ensure that construction businesses are paid for the work they perform. However, many limit the ability for subs and suppliers to file mechanics liens when the owner has fully paid their general contractor.

Restrictions on Ohio mechanics liens when GC is paid in full

On Ohio residential projects, subcontractors and suppliers' liens will be limited to the amount unpaid between the owner and their general contractor if the owner has made full payment before getting notice of the lien filing. So, if the owner fully pays their GC, then mechanics liens from subs and suppliers will be invalid. However, for non-residential jobs, it appears that a sub or supplier will be entitled to a mechanics lien claim for the full amount of what they're owed, regardless of what the general contractor has been paid. So, commercial jobs (including apartment complexes) won't have the same limitation on rights.

How to defend against an Ohio mechanics lien

As for how to fight the lien claim - that will first depend on the validity of the claim that's been made. But, regardless of the validity, you can absolutely put pressure on the GC (and the GC's subcontractor) to make sure the claimant gets paid what they're owed. And, owners are often able to seek legal claims and damages against others if they're damaged by a lien claim they aren't responsible for. In terms of official actions an owner can take - consulting an attorney and having them threaten legal action against a party (or multiple parties) involved may be useful. Further, actually filing an action to dispute the lien claim, bonding off the lien, or forcing their GC to bond off the lien could all be useful next steps. Though, if the lien claimant has gone unpaid and if their lien claim is valid, it'd likely be more useful to point threats at the parties responsible for the payment failure. For more information on how owners respond to lien claims, this article should be useful: A Mechanics Lien Was Filed on My Property – What Do I Do Now?

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