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How do I deal a contractor who has broken an agreement and is filing a mechanics lien?

ArizonaPreliminary Notice

I had hired a company, 1st impressions Ironworks, to build and install an iron gate. The cost was $2600. I gave them a $1,300 deposit to build and install the gate. A VERY long time later, they came to install the gate. While installing the gate I noted that the gate was manufactured backwards. The side with the iron work design, which is supposed to face the street, was facing the back yard and the side with a completely flat side, was facing the street. The install technician was a contractor hired to install the gate and told me not to make the final $1300 payment to ensure this would be corrected. I then reached out to the salesman who sold us the gate. He put me in touch with someone else at first impressions. This individual presented us 3 options: 1. Remove the gate and build it the way we actually ordered it while screwing plywood over the opening until it’s done, in which 1st impressions could not even offer a timeframe for this, causing a major issue with our HOA. 2. Add a small decorative piece to the upper part of the gate facing the street while it’s in place. This would have required us to submit these changes to our HOA and wait for an approval. 3. Leave the gate how it is, built and installed backwards, and receive a 15% discount on full price of the gate. We agreed to the discount on this gate since dealing with our HOA was proving to be a major issue for us. Also because having plywood screwed over the entry posed a major issue for us as this gate is the entrance to the secondary structure we had built for business purposes. That would have impeded our business and again, 1st impressions could offer no timeframe whatsoever as to how long that would take therefore we elected to accept the 15% discount on the gate. Since the original price of the gate was $2600, we were to receive a $390 discount off the price of the gate. As we had already paid them $1300, we should have owed them $910, the remaining balance after the discount was applied. First, 1st impressions attempted to collect the full $1,300 balance. I kindly reminded them of the 15% discount they offered due to their incompetence. I then was billed $1105. After doing some quick math I realized that first impressions had only calculated the 15% discount off the balance due of $1300, not off the actual price of the gate, $2600. I notified them NUMEROUS TIMES we were more than willing to pay 1st impressions the agreed upon price which would include the 15% discount. Recently I fell ill with Covid19 and during the time I was ill I received a voicemail from 1st impressions demanding that we pay them $1300 or they would send us to “collections”. Today in the mail we received a letter stating that a mechanics lien for $2600 has been filed. I feel legal representation is currently warranted and would Like to discuss my options as we feel 1st impressions has failed to live up to their agreement and is attempting to overcharge us for this item. What legal recourse do we have as customers and what should we do?

1 reply

Jan 29, 2021
The first thing you need to do is see if a mechanic's lien has actually been filed and obtain that from the county recorder's office. Then you check to see if the lien was done correctly, including a preliminary 20-day notice. I doubt one was sent for a gate installation. If no preliminary 20-day notice was sent then there are no mechanic's lien rights. If you find a mechanic's lien and determine it is invalid, then you send a written demand to release the lien and give them a 20-day deadline. If the lien is not released then there is a $5,000 fine you can collect from them if you have to sue to remove the lien. If they have a properly perfected mechanic's lien, then you can filed suit to quiet title and ask the court to remove the lien based on their breach of contract. Or, you can wait it out and see if they file suit to foreclose the lien because that lawsuit must be filed within six months of the date the lien was recorded. If they blow the deadline then you send a written demand to release the lien. If they sue you to foreclose then you can defend their claim by arguing that they breached their agreement on the discount. Given the amount of money involved, which is not much, you probably do not want to wind up in court over this, as the cost of a lawsuit will far outweigh the amount of money at stake.
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