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The work wont pass inspection. Offered to pay materials but he said no and is threatening a lien

North CarolinaMechanics LienPayment Disputes

We hired someone off Craig's list to encapsulate crawl space. New construction. $2800. After the 1st few days of work we paid 2 of his employees $700 for labor and they came back the next day to complete the job. However the work was so sloppy. He agreed and said he would fix it. After 3 attempts the job is still not acceptable. We have had the county inspector and another company to look at it. It doesnt meet nc code requirments and will not pass inspection. Will have to hire a new company to come and clean up this man's mess. We still offered to pay $600 in materials. He said no. He claims now he has over $1300 in materials(including 4500sq ft of plastic only need 2100 sq ft, $200 for 18 screws etc). We asked him for receipts and he won't provide them. He is sending my husband nasty text and emails. No professionalism. After some investigating we find that he recently changed the name of his company and has multiple complaints for crappy work, getting paid and not finishing and over charging for materials. My husband said we can go to small claims court and let them decide. Instead he is now threatening to file a lien against our home. It looks like in NC anyone can just go and take out a lien and only have to give a description of the incident and show no proof. How do we protect our self from him? Please help. We made a terrible mistake and I am a nervous wreck. Thank you

1 reply

Jun 12, 2020
It's relatively easy to get a mechanics lien filed in North Carolina, and it's hard for an owner to procedurally block a mechanics lien claim before it's actually filed. There are other ways to fend off a mechanics lien, though. Plus, if the lien does get filed, then there will be options for fighting that claim, too. Identifying why the claimant's lien would be invalid, unenforceable, or even fraudulent could help to force them to refrain from filing a lien claim. If a fraudulent lien is filed they'll generally be liable for damages, fees, and costs - plus other penalties could come into play, as well. In fact, under § 44A-24 of North Carolina's mechanics lien statute, filing a false lien will result in a misdemeanor. With all of that in mind - sending a demand letter (potentially via an attorney) requiring the claimant to stand down might be enough to get them off your back. What's more, if their work is defective, you may have your own claims against the contractor - and those might be leveraged into either having them refrain from filing a lien or having them release their lien (if one gets filed). If the lien does get filed - an owner can always bond off the lien or challenge the lien claim in court. As mentioned above, successfully challenging the lien could even force the claimant to pay out damages. And, since the legal stakes are so high, simply threatening to file that challenge could be enough to get the claimant to release their lien. Finally, seeking the help of a North Carolina construction attorney could be valuable if you believe the lien will soon be filed. They'll be able to assist you in creating a gameplan for defending against the lien, and a letter from them could prevent the filing altogether. Additionally, these resources should be useful: (1) I Just Received a Mechanics Lien Threat – What Should I Do Now?; and (2)  A Mechanics Lien Was Filed on My Property – What Do I Do Now?
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