If a customer agrees to payment plan that takes it outside of the 60 days in ohio and the customer breaks that agreement can you file a Lien under a breach of contract provision?
1 reply
Aug 10, 2020
First and foremost, one should always proceed with caution when it comes to promises to pay. Under Ohio mechanics lien law, as you mentioned, a claim against a residential property must be filed within 60 days of the last date of furnishing labor or materials to the project. Once that deadline has passed, a mechanics lien will no longer be available.
But, the use or non-use of mechanics lien rights will not preclude you from pursuing other legal remedies. You will still have rights based under a breach of contract or unjust enrichment claim. Yet these will be lawsuits based on that agreement, and wouldn't be brought under a mechanics lien claim.
The decision is ultimately a business one. How sure are you that your customer will pay the full amount? Is the unpaid balance substantial enough to pass up the opportunity to file mechanics lien? These are just some questions you'll need to answer to determine whether you should let that deadline pass or not.