One of our subs was waiting to be paid for work they did for us on a large reno project. While we were in the process of making financing arrangements to pay them, they filed a lien with the bldg owner. The owner went ahead and paid them directly using funds that were owed to us from a separately executed contract (at the same location, but not the original contract that the sub performed work on). The owner is now asking us to endorse and return a joint check (issued to us and the owner) and lien waiver for the amount that was paid to the sub. Keep in mind, we were given no notices that any of this was happening and we made no agreements to any of it. We had every intention of paying our sub. But we had no formal contract with them stating payment terms and we just needed a little more time (not an excuse, just reality). Getting past the right or wrong thing to do argument, what would be in our best interest from a legal standpoint? Sign and return the documents, don't sign and sue (six figures, and we really need the money), or file a lien of our own?