Home>Levelset Community>Legal Help>Our Company's GC Lien expired (Colorado does not have renewable liens). I now need to start the judgement process. How soon do I have to start that. Is there a timeframe for judgments in CO?
Our Company's GC Lien expired (Colorado does not have renewable liens). I now need to start the judgement process. How soon do I have to start that. Is there a timeframe for judgments in CO?
Our Company's GC Lien expired (Colorado does not have renewable liens). I now need to start the judgement process. How soon do I have to start that. Is there a timeframe for judgments in CO?
1 reply
Jun 3, 2019
That's an interesting question, and I think covering some of Colorado's lien law basics should help here. Let's look at the enforcement deadline for Colorado mechanics liens and the potential for extending a filed mechanics lien.
In Colorado, a mechanics lien must be enforced within 6 months from the time when the project was completed, or from when labor or materials were provided to the project. If this timeframe comes and goes and no legal action (lawsuit) is filed to enforce the lien, the lien will generally expire and become unenforceable. So, if legal action was not timely made on a filed lien, then obtaining a judgment on the lien itself might not be possible.
Of course, that doesn't mean that some other legal claim can't be filed, and a judgment could certainly be obtained by pursuing some other legal remedy (such as an action based on breach of contract, unjust enrichment, or some other legal theory). Generally, the timeframe for filing some other legal action will be much more lenient than the timeframe for filing a lien.
It's also worth noting that, regardless of whether legal action can or would ultimately be pursued, the mere threat of a lien enforcement action (or of legal action) can be effective to compel payment. By sending a document like a Notice of Intent to Foreclose, a lien claimant can show that they're serious about obtaining payment, and that they're willing to do whatever it takes to get paid. Because nobody likes a lawsuit - especially one where their property title could be foreclosed upon - sending a document like a Notice of Intent to Foreclose can be really effective. Sending other legal threats can be effective as well, particularly when sent via attorney.
Ultimately, if legal action will be pursued, it'd be wise to consult a local construction attorney - they'll be able to review your circumstances as well as any documentation and advise on how best to proceed.