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What are my rights if mechanics lien is filed against me by a sub but GC was paid in full and didn't fully pay subs

MarylandMechanics Lien

I hired a general contractor to do tenant outfit. He was paid in full and submitted lien waivers for all subs. One has come back to say they were not pay and is suing me and the landlord. Work he did did not improve 15% of value but I have a notice to attend a hearing to show cause for mechanics lien. What do I need to do?

3 replies

Jul 8, 2021

I am sorry to hear you are the victim of an unscrupulous gc. In Maryland, the mechanic's lien law will actually require an owner to pay out twice on commercial work, meaning, payment to a gc is not a defense to a subcontractor's lien.  

But, you do have several defenses, for example, as you already mentioned, if the overall work of the gc did not improve the value of the building by 15%, it is not subject to a mechanic's lien at all. You may also have defenses based on the timliness and sufficiency of both the notice and the actual lien petition.  

You also have to ensure you file a timely and complete verified answer to the lien petiton. Bottom line:: you need an experienced Maryland construction lawyer immediately!

Please feel free to reach out to me directly to further discuss how I can be of assistance: joe@joekatzlaw.com.

Good luck!  

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Jul 9, 2021

If the contractor truly has not met the 15% requirement, then you have a pretty good defense there. There are other commons defenses to evaluate as well, such as making sure the notice you received conforms with the laws of Maryland.

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Jul 26, 2021
The Show Cause Hearing provides very limited bases to defeat the imposition of the interlocutory lien (a temporary lien that will persist through the remainder of the litigation, unless you post a bond or other security). Factual disputes about the work often do not carry the day, at this hearing. Whether certain statutory requisites have been met, and whether you can absolutely demonstrate payment to the sub are the few bases to win, at this early stage.
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