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Signing a release for what owner owes, does that mean we can't file for the other 2 subs that still owe on same project?

TexasLien Waivers

We have a project where the Owner, along with (2) subs owe us. The subs won't pay us because the owner is refusing to pay any more than the contracted amount to them and says they should have paid us with that money. The owners still need to use our company on future projects so they are going to pay us their portion owed and want us to sign a lien release. If we do that, does that mean we can't file against the project for the (2) subs that owe us money as well?

1 reply

Feb 16, 2022

You really should retain a construction attorney to review and evaluate your legal position based on the contract and pertinent documents. The right to be entitled to file a mechanic's lien is set out in Texas Property Code Chapter 53, and you really need to make sure that if you file a lien, you have properly and appropriately done so.

Filing an invalid lien could subject you to liability under the Texas Fraudulent Lien Act, and you could be liable for statutory damages of $10,000, or actual damages, whichever is greater, plus attorney's fees. Facing such a claim would add insult to injury.

You do not explain why two subcontractors owe you money. Retain a construction attorney to evaluate the situation and to provide advice.

Good luck.

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