We are family run business and did work for LLC that does home renovations, had fallout after doing about $4880. of work and placed lien on property. Home was then completed by others put on market 8 months after lien was placed and title company did closing held money in escrow and did not contact me in any way and then just after the 12 expiration on lien, they went in to title company and showed them expired lien and took the money. Does the title company have any obligation to the lien holder? no idea the closing took place until it was recored and money was already released back to owner. Is what they did in handling of lien legal in the state of Michigan?? Please help
Unfortunately, I don't think the title company owed you as a lien claimant any duty to make sure your lien was paid. It sounds like what happened was someone "insured over" your lien by putting 150-200% of the lien amount into escrow with the title company. And then, after more than 1 year passed without you taking any action to enforce the lien, someone secured the discharge of your lien. If no action is taken within 1 year of recording the lien, it "expires" and can be discharged upon the submission of an affidavit by the owner of the property or a representative.
That being said, your contract rights have not expired. The statute of limitations on a contract claim is 6 years from breach. So, you may still have rights against your customer.