We sold equipment to a contractor. They installed it and were paid by the end user. Should/can I file a lien on the end user? They already paid the contractor so I'm not sure I should/can file a lien against their property?
1 reply
Dec 23, 2019
Generally, Missouri subcontractors and suppliers seem to be entitled to mechanics lien rights to the full extent that they're owed and unpaid, even when their customer has received full payment. Note, though, that before resorting to a mechanics lien filing, it's usually a good idea to pursue other recovery options. Let's look at a few tools that can lead to payment before a lien becomes necessary.
Invoice reminders
For one, if there isn't an active payment dispute at hand, sending a simple invoice reminder can be a gentle push in the right direction. And, sometimes, that's all it takes to get paid. Ultimately, an invoice reminder simply reminds a customer that payment is outstanding and must be paid soon.
Demand letters
Escalating things some with a payment demand letter can be helpful, too. A demand letter will generally include specific legal threats and put a deadline on paying the outstanding debt. Ultimately, it serves to show a customer that you're serious about getting paid and willing to do whatever it takes to make sure that happens.
Notice of Intent to Lien
Mechanics liens are incredibly powerful in forcing payment, which means the mere threat of a lien claim is powerful, too. A Notice of Intent to Lien acts as a warning shot - it lets recipients know that if payment isn't made and made soon, then a lien claim will be filed.
Plus, by sending a Notice of Intent to Lien to the property owner as well as the nonpaying customer, that can put additional pressure on the customer to do the right thing and pay what's owed. What's more, a Notice of Intent to Lien is actually a required part of the Missouri mechanics lien process - so the document will hold that much more weight since it's an actual prerequisite to a lien filing.
For more on how Notices of Intent to Lien work, as well as Missouri's notice requirements:
- What Is a Notice of Intent to Lien and Should You Send One?- Missouri Preliminary Notice Guide and FAQs