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How to contest a lien?

New MexicoMechanics Lien Payment Disputes

I am an owner who hired a contractor without doing due diligence. He sent me photos of work that was totally not in line with my instructions. Being that I am an out of state owner I was unable to visit the jobsite regularly. When I did show up the neighbor asked me if I was going to continue the job as no one had been there for two weeks. But now the contactor is billing me for work he said was done that week no one was there. We do not have a written contract.

1 reply

May 5, 2020

Owners can contest mechanics liens in a few ways - namely: by making legal threats, bonding off the lien claim, or by challenging the lien via legal action. Generally, owners will start with legal threats - and a demand letter from an attorney requiring the claimant to release their lien or face legal penalties could be effective. Alternatively, bonding off a mechanics lien will be useful for getting the property title out of the equation - though, the claimant could still pursue recovery against that bond. And, finally, an owner could file suit against the claimant contending the lien is improper, fraudulent, etc. - and the owner could pursue damages as a result of the lien claim as well. Every situation is different, though. So, it's usually a good idea to assess the options available and determine what steps make the most sense for you. Certainly, consulting a New Mexico construction attorney could be valuable for that. Additionally, these resources should be valuable: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?

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