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How can I contest a mechanics lien for work that was not done?

ColoradoMechanics Lien

There was water problem on a Rental that I manage for my son. Serve Pro was called to clean up the water. They pulled out the water and put up fans, and called to say the floors would need to be pulled up to dry under them, and they could bill the insurance for an estimated charge of $3,921.86. I told her, that I had to check with my son, and inquired what the charges were for what was already completed. She stated the charges so far were $740. I spoke with my son, who felt he wanted a second opinion to decide if that extent of work was truely necessary before deciding to file an insurance claim. I called her immediately and stated that he did not want to go forward and they should remove the fans. The next day, they came to remove the fans, and service person called to say I needed to confirm that I understood there was moisture under the floor. I confirmed on the telephone that I understood that, and indeed wanted them to remove the fans. I got a bill for the full amount of $3, 921.86 via email. I called to remind the person I spoke to initially, who had identified as a part owner, that we had stopped the work, and she had said it would be $740 . She looked at her notes and said she saw the $740, but did not write what it was for. I told her to please send me a bill for the $740 and would pay it immediately. Again I sent an invoice for the full $3,921.86. Again I called and requested she call me, and advised the secretary that I would be happy to pay the correct amount of $740 to please speak with the first person to confirm and send the correct invoice for immediate payment. I then received a copy of a Mechanics Lien for the full $3,921.86 that had been filed in Arapahoe County where the work, ()the $740 worth or work), not the almost $4,000 worth of work had been done. How can I contest this? It is an eronious charge. Not only was the work not done, there was never a contract or a verbal agreement for anything more than the initial service that was $740.00.

2 replies

Jan 11, 2023

We'd need to verify that you in fact were liened for that full amount, as opposed to noticed of the intent to lien with a statement that is simply incorrect. Filing an overstated lien (when proven) is a real problem for the lienor. It operates to forfeit any lien rights, and you would be entitled under the statute to attorney fees and costs. See CRS 38-22-128.

If there is a lien, and it's an immediate concern (for instance, you were trying to refinance or sell) there are also ways to immediately remove the lien during the pendency of pursuing the overstated claim. The most common way we remove them is by a cash bond with the court for 1.5x the amount of the claimed lien. That money is essentially held in escrow until the lien would expire and no further action could be taken on it, or any suit is resolved.

Feel free to contact our office to discuss the issue further. 7205007855.

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Jan 12, 2023
The mechanic’s lien statute is a protection for contractors so they can be fully compensated for the value of the work they provide for projects. However, if you had something in writing that was for a lesser amount than they put in the mechanic’s lien, the mechanic’s lien could be overstated which would likely open them to penalties and attorneys fees. Unfortunately, since the amounts are so low the cost of paying a lawyer to push this through the court system could be substantially more than the amount they are claiming. You may want to consider representing yourself and taking the matter to small claims court.
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