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Sub tier supplier filed a lien

I am a Subcontractor on a project and have a contract with the Prime Contractor. I have a second tier subcontractor who ceased operations after being paid in full via a joint check made out to my company and the second tier sub from the Prime. However, the second tier sub did not in turn pay a supplier used on the project. A mechanics lien has now been filed and the Prime contractor is forcing me to settle the issue (citing sections of my contract), or the amount will be taken from my contract's retention to satisfy the lien. Assuming the lien is valid and meets all requirements, do I have any options available to me?

1 reply

Jan 31, 2018

Provided all statutory requirements (timing, form, service, recording, etc.) were met, such that the supplier's lien is valid and enforceable, there's not much that can be done regarding the lien itself. Whether you can be required to satisfy the lien claim is likely dependent upon your contract - which cannot be determined in this forum. You may want to have your contract examined by a local attorney for assistance here.

In any event, if you are required to satisfy the claim, you would have an action against your subcontractor to recover that amount.

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