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Property owner who has received an intent to lien

Hello, My husband and I recieved a notice of intent to lien from the plumber who subcontracted on our new home. The amount is roughly $3,300. There is no mortgage on the house. We paid him $19,000 already. This is a disputed balance since the final bill was 50% higher than he bid ($15,500). In addition, he did not bill regularly throughout the project and was in fact the last subcontractor to submit a bill. Our general contractor disputed the bill with him and requested details about the $3,300 in extra labor and we have invited them both to sit down to discuss, but the plumber hasn't responded. He specifically told my husband (who requested that he discuss with it with our contractor, "I'm not going to beg for my money." His crew also did some shoddy work that had to be redone by another subcontractor. We are more than willing to pay justifiable overages, but he appears unwilling to provide detail. What are our options as property owners?

1 reply

Oct 7, 2019

For property owners, it can be hard to officially or procedurally block a mechanics lien before it's been filed. Once a lien is filed, an owner can typically challenge the filed lien (via legal action) or even bond off the lien, but these are seemingly only options after a Colorado mechanics lien has been filed. However, continuing to reach out to the would-be lien claimant might be helpful. Reminding them that they'll have to prove what they're owed - either in attempt to resolve the dispute, or during a more formal dispute over the filed lien claim - might be helpful. Further, notifying them that their lien will be bonded off once it's filed can help fend off improper claims since bonded off liens must be recovered via enforcement suit. Claimants with bogus claims tend to avoid enforcement actions. What's more, when Colorado lien claimants exaggerate the amount of their lien, they'll lose their right to lien and will be liable for the costs and attorney fees incurred in disputing their lien claim. And, an owner could always attempt to pursue damages, too, against a mechanics lien claimant who's filed an excessive claim. Finally, an owner might be able to help resolve their dispute if they put pressure on the contractor to clear the air with their sub. If a contractor's subcontractor files a mechanics lien against the project property, that owner will generally be entitled to bring their contractor into the dispute and hold them liable for the debt. After all, the contractor did hire the subcontractor - and, if the contractor truly did fail to make full payment, that's their own responsibility. So, reminding a contractor they're on the hook, too, could be helpful. As a last and final note, though - keep in mind that a mechanics lien claimant can still file their lien claim even if there's a dispute as to what's owed, and even if their workmanship is in dispute. Plus, not every mistaken claim is automatically fraudulent. So, it's entirely possible that a good faith dispute might take some clearing up in the courts if the lien is filed and ultimately challenged.

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