I recieved a certified document/ letter from customers lawyer demanding we cancel the lien we placed on his customers house. I have attached it in this file. How should we respond.
1 reply
Apr 1, 2020
It's common for a customer, owner, GC, and their lawyer to challenge a mechanics lien claim when one gets filed. This is true regardless of whether there's an actual issue with the claim, which Levelset discusses in this article: My Lien Was Challenged: What Do I Do?
As mentioned in that article, lien claimants will generally have a few different options for proceeding when their lien has been challenged. A great first step is to thoroughly review the document which challenges the lien. And, having your lawyer assist with that review can help to determine (1) What, exactly, is being alleged; (2) The validity of those claims or arguments; and (3) Options for proceeding.
Further, if legal action hasn't been taken to dispute the lien, that means there's likely still time to negotiate. And, even if there is some flaw or issue with the lien claim, it's possible to negotiate a settlement or agreement anyway. Lien enforcements are ugly affairs and nobody likes a lawsuit, plus construction payment disputes will often include a lot of gray areas. So, rather than enter into risky litigation, it will often be easier for a customer to pay what they owe. This is especially true when they know the claimant will vigorously pursue legal claims, if necessary.
But, every dispute is different. How to respond is ultimately up to the lien claimant and will highly depend on their specific circumstances. For help deciding how to forge ahead, it would be helpful having a Louisiana construction attorney review your documents and advise on how to move forward.