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What are our options if we don't have lien rights?

We have a job in Ohio that we first furnished materials in August of 2018 and last furnished in February of 2029. We have not submitted any documents and they have been giving us the run around for payment. What are our options?

4 replies

Feb 20, 2020

Generally, when a debt is not subject to being secured by lien rights or through a claim against a payment bond, the ultimate path to recovery is through a lawsuit, or the threat thereof. There can be multiple causes of action for bringing a lawsuit to recover the amounts due, including breach of contract, breach of prompt payment obligations, and more. While litigation can be time consuming and expensive, it is often the best option in the absence of security rights (which, themselves, may eventually require litigation). An attempt can be made to recover through sending a demand letter referencing the potential litigation, as well. If the amount at issue is $3,000 or less it may be possible to file an action in small claims court, which can limit the time and expense required. Additionally, some companies have success turning past-due received;es over to an outside collection agency.

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Feb 21, 2020

I'm not sure who your contract is with - the owner of the property directly or a General Contractor? If you are contracted with the GC then you may want to consider contacting the owner of the property, show them the paid material invoices you provided and an Affidavit from your supplier that those materials were in fact for that property. You can then tell them you have not been paid by their GC and request help from them - even just a meeting between them, you and the GC could prove very helpful. They most likely will have some leverage over the GC and hopefully will help you. If they are withholding retainage they may even pay you directly. I would try that before litigation but make sure they all know you are willing to file a lawsuit if needed and you are simply contacting them to try and avoid that. Good Luck!

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Feb 21, 2020

I would recommend using a Certified Commercial Collection Agency of America CCAofA member who is licensed and bonded to collect in Ohio which can collect that account on a contingency bases so you are not throwing good money on a bad account, nor wasting time and money going to court. If all you want is your money you can call or email srauch@rauchmilliken.com for a free quote or referral to all CCAofA members. Best regards in getting paid, Steve

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Feb 21, 2020

My firm can assist your company with collections on any unpaid invoices; please feel free to call or email. Remember, while perfected lien rights do afford a more direct path to payment, my firm can succeed for you even when lien rights have expired or were never pursued.

Mike Ross Miller, Ross & Goldman mross@mrgpartners.com (512)275-6412 Direct https://www.mrgpartners.com/levelset

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