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Preliminary Lien Notice and Mechanics lien

ArizonaConstruction ContractMechanics LienNotice of Intent to Lien

I entered into a contract with contractor for work. I gave a deposit for 20% ($100) that I though was for agreement to do work. The stipulation was the company had backlogs and I agree to 4-6 weeks delay. At week 5, 6 and 7, I sent numerous requests through their answering service and email requesting a date of work to be done, to no avail. I finally said on the last email, if you don't contact me, tonight, I am cancelling the job. I finally did receive a call 4 days after my email requesting the job to be cancelled. The person calling was rude, intimidating and said if I want out of the contract I have to sign a "resolution agreement", meaning he holds my deposit unless I say I will not, "file any outside complaints, posting negative or verbal slander originating from me and will void and reinstate original contract in full." Since I refused to sign such resolution which I believe violates FTC rules and the Consumer Review Fairness Act which prevents business from demanding such an agreement, he now threatens to take me to smalls claims court (for my $100 deposit which he still has), place lien on home and sue me for the full amount of work that was supposed to be done ($509). I understand, keeping my 20% deposit but suing me for the full amount for work NOT scheduled, Not started and/or Not completed? I sent three emails saying I do not want to do business with his company. I believe that is fair notice to resolve and show my intent, no? Can he sue me for the full amount of contract work not even done? Thoughts?

1 reply

Jul 16, 2020
If the residence is owner occupied, then he cannot lien the property without a written contract. As for a lawsuit, if there is a written agreement in place, the terms of that agreement will determine what the contractor's rights are. If the agreement was verbal, based on what you have described, his failure to timely start work likely means you can cancel the contract, because he has breached the terms of the agreement. As for whether he can sue you, unfortunately any idiot can file a lawsuit. So yes he can sue you. No he can't force you to sign or agree to anything.

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