I have tried to negotiate but was told I'm not getting paid. Should I file now?
2 replies
Mar 17, 2020
Knowing when to file a mechanics lien can be a hard calculation. Every payment dispute is different, so it's ultimately up to the claimant to decide when it's time to pull the trigger on a lien claim. Still, there are two extremely important considerations to keep in mind: (1) the lien deadline, and (2) the Notice of Intent to Lien requirement.
In Wisconsin, the deadline to file a mechanics lien is 6 months after the last day when labor or materials were furnished to the project. However, Wisconsin is one of few states which actually requires that a Notice of Intent to Lien be sent before a lien can be filed. And, that must be sent at least 30 days before the lien is filed. Practically, then, that makes the deadline to begin the process about 5 months after last furnishing.
As a result, at the very latest, a claimant should get the ball rolling on sending a Wisconsin Notice of Intent to Lien between 4 and 5 months after their last furnishing date. Though, it may make sense to move on that more quickly if it's become apparent that payment won't be made unless a claim is filed. But again - it's up to the business' particular situation and preferences as to when, exactly, to begin the lien process.
Recovery options before resorting to a mechanics lien filing
Before deciding to pursue a lien claim, there are some other recovery tools that might help to get paid. And, it might be worthwhile to build in some time to pursue these options before the lien deadline gets too close.
Sending a payment demand letter
For one, sending a payment demand letter might move things in the right direction. A demand letter will let recipients know the consequences if they fail to pay what's owed. Generally, a demand letter will include specific legal threats and put a deadline on when payment must be made.
Leveraging a Notice of Intent to Lien
Another option, as mentioned above, is leveraging the right to lien into payment with a Notice of Intent to Lien. A Notice of Intent to Lien is a required part of the Wisconsin mechanics lien process, but it's also a solid payment recovery tool in and of itself. So, sending a Notice of Intent a bit earlier than the lien deadline then leveraging the potential lien claim could work to get paid.
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Mar 17, 2020
Thank you for the response. I should have mentioned that I have already sent an intent to lein. Levelset helped me with that, and I was hoping to see what needs to happen next. Thanks again Josh