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Proper way to file a lien

TexasLien on Funds

I have been hired as a contractor worker for a company that is buying and owns multiple properties in Texas. I have been working for them for around 8 months and I was never given any contracts stating my work on paper therefore no actual “contract” to do what they asked me to do on their properties. I went ahead and bought all the material needed ahead of time because I was told by word of mouth at the beginning that I and I only would be doing the work. Turns out little by little to eat have been taking my work from me leaving me with the lump sum of material I bought. This company has also never payed on time, I have completed more than plenty of work done every month and I never get paid on time. I have been waiting 3 months now for my payment. Every time I mention it they agregue it and send me pennies of it. I don’t have anything on paper because they said they don’t do that and All I have is pictures of my work and other little things here and there. Will I be forced to quite (be fired) this job after I send in the lien? Will my lien be valid without any contract? When will I get paid?

2 replies

May 5, 2021

The legal analysis would start with a review of your communications with the company, and a determination as to whether you are a general contractor (with a contract directly with the owner) or a subcontractor (with a contract with a contractor who contracted with the owner). It could also be that if you contracted with a contractor who contracted with the owner, the contractor could be a sham contractor with no responsibility for the actual construction.

The strategy for collection of what you are owed depends on whether you are a contractor or subcontractor, and whether you have provided the notices required under Chapter 53 of the Texas Property Code.

Retain a construction attorney to evaluate your legal situation and to provide advice.

Good luck.

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May 5, 2021

Hello!

Will you be fired after sending a lien
This is not a question we can answer. That depends solely on the nature of your relationship with the company. Further, termination after filing a lien does not put you under any protected class of persons (age, sex, race, national origin, whistleblower, etc.). They can fire you if they would like but they can do that anyway. And it sounds like you would make more money elsewhere.

Will your lien be valid without a contract
Not really the proper question. Yes, you can file a lien without a contract if there is work that has been performed for the improvement of real property that has gone unpaid. HOWEVER, you are going to have a beast of a time enforcing it in court. With no clearly defined scope of work, prices, expected completion dates, material purchase agreements, or anything like that, you are going to be left telling your story with only a few pictures, some receipts, and some text messages. It can be done but it is going to be complex.

In this type of situation, I routinely tell my clients, "Imagine you have to tell your story but your mouth is sewn shut and the other side is lying. How do you do it?" It is ridiculously stupid hard to do without written evidence, pictures, signatures, and contracts.

With that being said, it is possible. Difficult and expensive but possible.

When will you get paid?
Again, not the best question. The better question is HOW will you get paid. The answer is: put your paperwork together to prove up as much of your actual cost and time expenditure as possible then sue them. You may not have a lien or be able to enforce a lien but it is far simpler to enforce breach of contract, quantum meruit/promissory estoppel, and violations of the Prompt Payment Act, etc. when a party has not paid despite not having an actual contract.

A lawsuit will take as long as a lawsuit takes and if you get a judgment in your favor, you place it against one of their properties and you foreclose on your judgment lien. Someone will pay you before that happens.

Going Forward
If you disregard everything else I've said here, you need to remember one thing. IF YOU ARE GOING TO EAT WHAT YOU KILL, YOU NEED TO MAKE SURE YOUR KILL DOESN'T GET UP AND RUN AWAY. It is a wonderful thing to own your own business and have landed such lucrative work but if you're good, you should be making money. The labor market is too tight for them to be playing games with your money.

You have to make sure that when you land a piece of business, it doesn't get away from you. This one is getting away from you. Get a contract for each property that you are expected to work on. Make sure that contract clearly defines price and scope of work. And when you don't get paid, provide whatever required notices you need to provide, file a lien, and keep it moving. Can't feed a family, if you're being screwed on pay.

E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com

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