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How do i file a lien against a customer ?

MichiganRight to Lien

I am a licensed contractor been in businesss for 18 years. I completed a roof on 4 / 3 / 2020 The customer said i damaged his driveway which is a lie. So he witheld $2,000.00 He owed me $7,000.00 and only sent check for $5,000.00

2 replies

May 6, 2020
If per the contract, the customer still owes you funds, you are able to file a construction lien on the home within 90 days of last providing labor and material. Once you have the lien, you will need to file a lawsuit to foreclose on that lien within 1 year of the filing of the lien. It appears Levelset is offering a lien filing for $199 if you use the checkout code COVID19. That is a great price and based on the amount of funds you are trying to collect, I would suggest you go that route. Best of luck to you and should you need a lawyer to foreclose on the lien, please call my law firm, Willis Law, at 800-610-6938.
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May 6, 2020
Adding to Shaun's reply, I have two additional comments: 1. Make sure that your customer didn't add language in the memo field or on the back of the $5,000 check that says "Final Payment" or words to that effect. If there is such language, it's an attempt by the Customer to compromise the $7,000 you're owed and create the legal defense of "accord and satisfaction." An "accord and satisfaction" occurs when two parties agree to give and accept something in the settlement of a claim that is different (usually less) than what was originally agreed upon. The agreement to accept less (accord) is completed (satisfied) when the lesser amount is received and accepted. 2. If the Customer is claiming you damaged the driveway, whether you agree with it or not, that's a claim for property damage that may be covered by your general liability insurance. The amount claimed ($2,000), however, is probably less than your deductible. I know many contractors are reluctant to report claims because they fear it will raise their rates at renewal. But it's still something to consider. Peter
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