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Problems on multiple sites, same customer

CaliforniaCollectionsLawsuitLien ForeclosureMechanics LienRight to Lien

We had projects with the same client, but 4 different LLC's. They are not paying. We completed 2 large projects. 1 had just some finishing to do, they agreed to let another finish up. and the last one went sour. They sent a stop notice to us, really because the owner and the Project manager/owner couldn't get along. But then hired our main subcontractor, who was running the job for us. Really just need some good sound advice. How can I just get paid with out being sued? They won't even negotiate with us.

1 reply

Apr 26, 2023

If they won't negotiate, you need to create some leverage to bring them to the bargaining table. You could send a demand letter to the owner, attorney letterhead helps, and notify them that you intend to record mechanics liens and serve bonded stop payment notices if not paid by a fixed date. If they don't pay by the fixed date, you could record your liens and serve bonded stop payment notices. Those steps often create enough leverage to get paid. However, if that doesn't prompt payment, you could file a lawsuit to foreclose your lien, enforce your bonded stop payment notice, and seek damages for breach of contract.

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