We are an underground utility contractor and have been contracted to install the underground water, sewer & storm sewer utilities on several phases of a residential subdivision. Each phase has its own contract and billings. We are wanting to file a retainage lien against a phase that has been completed and already has houses being built and sold. Are we able to still file a lien over the whole project and parcel of property? How can we best protect our interests?
Hello,
Who were you contracted by? Is it a private owner or a city?
This is going to be weird. You may file a lien on properties for which you have provided labor or equipment for improvements. I would need to see the paperwork but if the owner still owns the property of the subdivision, you get to lien on the block of land containing all of those houses that is owned by the property owner. The houses that have been sold are going to cause a problem, though.
Fortunately, this is one of those scenarios where, by the time it comes to litigation, the property owner is most likely going to be more prepared to pay what he owes than face down the breach of contract and Prompt Payment Act violations plus attorney's fees that he's going to owe when you're done with them. Call us and let's explore this.
E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com