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We got paid after filing a lien in Michigan, but they want some money back. What do we do?

MichiganMechanics Lien

Anonymous Contractor

Hello! I have a question on how to proceed with an issue I have. A project I sent a lien to has made a payment in full. However, they have also submitted a charge to us taking back some of the payment they originally made. We are wanting to send out a new lien for the amount they took back. Do I need to start all over with the paperwork? Meaning, do I need to send a new Notice of furnishing, Notice of intent as well as a mechanics lien?

1 reply

Dec 10, 2018

That's a fair question. First, it's worth mentioning that while I won't be able to provide advice on how to proceed, I will be able to provide some information that should be helpful in determining how to move forward. Before looking too far into Michigan's lien laws, it's important note that the deadline to file a lien is 90 days after the lien claimant last furnished labor or materials to the project. This deadline is strict and unforgiving - and if a claimant would be running up on their deadline, it might not be the best idea to release a filed lien to file a new one. Potentially, a claimant could be left without receiving full payment and without leverage to obtain it. If the lien deadline is far enough out, potentially, a lien claimant might be able to release their filed lien to file another lien - but again, that might not be the best option. Instead, when a mechanics lien has been partially paid, a safer option might be to try and modify the original lien filing, or to just sit tight and use the lien to leverage full payment of the debt owed. We discuss those options, and others, in this article: I Received Partial Payment — What Should I Do With My Mechanics Lien? Lastly, if a new mechanics lien is ultimately the option that a claimant wishes to move forward with, it's important to understand how the notice rules might come into play. Ultimately, the answer is - they won't. First, a Notice of Intent to Lien, while valuable, is not a required notice in Michigan. Thus, since there's no need to send one in the first place, there's no need to send another one if another lien would be filed. Further, regarding the Michigan Notice of Furnishing - that notice is required at the start of the project, and sending late notice could be ineffective. However, it'd also be unnecessary - a Notice of Furnishing preserves the right to file a lien, but it doesn't have a 1-to-1 relationship tying it directly to a lien that is later filed. No, a Notice of Furnishing preserves the claimant's general right to later file a mechanics lien. So, even where one lien has already been filed on a project, that would not invalidate a Notice of Furnishing as it relates to another later-filed lien. But again, filing another, separate mechanics lien might not be the best option available - especially when that would jeopardize deadlines.

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