Home>Levelset Community>Legal Help>I am am house owner. I had a water leak. Mitigation company threatening to file a mechanics lien.

I am am house owner. I had a water leak. Mitigation company threatening to file a mechanics lien.

I had a water leak and called a mitigation company to mitigate the leak. I did not sign any contracts or agreed to any payments. They sent me $9000 invoice for the work. I submitted it to my insurance company who states that the mitigation company has overcharged me. They will not pay for certain costs as they are not "industry standards." I have had other people look at the invoice and they all say that some of the charges are not accurate. I don't agree with some of the measurements that they used to come up with the charges or some of the hourly charges that they billed for. I have offered to pay them what I think is fair and reasonable. The mitigation company is threatening to put a mechanics lien on my home. I have offered a settlement amount of $6000, however, they do not want to accept that. What can I do?

1 reply

Jun 24, 2020

In Missouri, claimants don't need a written contract in order for mechanics lien rights to arise. And, it's possible for a claimant to file their lien even if there's a dispute over what's owed. Plus, to be sure, contractors can typically still file mechanics liens even if payment is supposed to come from someone other than the owner. Granted, if their lien is filed, the owner is fully entitled to dispute the lien claim by challenging the claim. In terms of blocking a claimant's lien - it's hard to prevent a lien filing from taking place. However, if you can produce documentation from other professionals and your insurer stating that the invoice is too high, that might help to convince them to lower the bill. Additionally, if you let them know you understand your rights and that you're willing to file a lawsuit to dispute the lien and to seek damages from the claimant, they may want to avoid the trouble that the lien filing would cause. Alternatively, asking the contractor to take it up with your insurance company might help to get the issue off your plate. Or, asking the insurance company to resolve the matter with the contractor might be an option too. And, of course, negotiating a lower fee with the contractor is an option, too. If you can show that they've obviously overcharged, and if you can show you'll defend against their claims tooth and nail, they might be willing to talk payment. Finally, these articles may be useful: - I Just Received a Notice of Intent to Lien – What Should I Do Now? - A Mechanics Lien Was Filed on My Property – What Do I Do Now?

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