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lien after a year?

TexasLien on Funds

We have a person who has not paid us in over a year. We filed a notice of intent and due to a change in staff, the lien was not filed. We have this persons contents and she has not responded to any of our correspondence. What is our next step? What can we do with her contents?

1 reply

Feb 16, 2022

The legal analysis would start with a review of your contract, and then extend to any communications which have occurred, and to the nature of the project (commercial, residential, homestead, etc.), and to why you are holding the person's contents.

 You do not even specify if construction was involved, and if so, where you were on the contracting hierarchy. You really should retain a construction attorney to review and evaluate your legal position based on the contract and pertinent documents. Assuming there was a construction project, the right to be entitled to file a mechanic's lien is set out in Texas Property Code Chapter 53, and you really need to make sure that if you file a lien, you have properly and appropriately done so.

Filing an invalid lien could subject you to liability under the Texas Fraudulent Lien Act, and you could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees. Facing such a claim would add insult to injury.

You should consider preparing a letter to mail by certified mail, return receipt requested, to the person to set out the facts and to demand the relief that you want. Attach your unpaid invoice(s), and photos of your work. Make sure that your letter is professional and business like as it may be evidence later.

If need be, consider filing suit in small claims court (assuming that your claim is less than $20,000), using your letter as evidence.

Good luck.

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