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Mechenics Lien in North Carolina

We hired a contractor to do work on our home. He provided an estimate. However did additional work on home with out our approval and caused damage to 3 places on our roof. Still has not completed the work but sent us an invoice. When we refused to pay for the work since it is not completed and damages he claims he can start billing up for past due invoice. He also returned to our home 2 weeks after claiming to have completed the work and did additional damage to our roof and tried to fix one of the items. He is now threatening up with a mechanics lien. Suggestions on how to proceed.

1 reply

Feb 24, 2020

Mechanics lien rights are generally available for situations where construction work improves the property but isn't paid for. But, in order for those rights to arise, the work must be authorized. So, if a contractor has done work that wasn't contracted for, that contractor can't then turn around and file a claim for payment on the unauthorized work. Generally, unless a change order has been made, a contractor will have a hard time pursuing a claim for work done outside of their contracted scope of work - particularly when the owner can show they'd never asked for the work to be done at all. The mere fact that there's a dispute over workmanship or a dispute over what's owed won't render a mechanics lien invalid and unenforceable. However, if there are legitimate claims that the work was defective, that the contractor damaged the property, or that payment isn't actually owed - then those could all serve as the basis for challenging the filed lien. And, if proven, could limit or even destroy the availability of a lien claim to the contractor. Regarding interest charges - if there is some payment that's due and owing, and if the contract calls for interest penalties, then interest charges could be stacking up. But interest will only be owed if payment was actually owed. So, if the owner has a legitimate reason for not making payment, then interest seemingly wouldn't be accruing.

How to defend against a North Carolina mechanics lien

It can be hard to block a mechanics lien before it's actually been filed. But, demanding that the would-be claimant refrains from posting their lien could be a good start. Sending them a demand letter that clarifies why lien rights aren't available and that all legal remedies will be pursued if a lien is filed might convince them to stand down. This can be especially effective when sent via attorney and citing to specific causes of action. Once a lien claim is filed, owners will usually have more options. At that point, an owner may bond off the filed lien, and they can also challenge the lien filing if there are issues with the claim. Ultimately, though, it would be wise to consult a local North Carolina construction attorney if it seems like a lien filing or other dispute is imminent. They'll be able to assess the situation and project documentation and advise on how best to proceed.

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