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What happens if a client threatens a lawsuit to get you to remove the lien and accept an unfavorable settlement?

WashingtonMechanics LienPayment Disputes

Clients attorney has threatened lawsuit if we don’t remove lien.

1 reply

Dec 5, 2018
I'm sorry to hear about that. First, it's worth noting that regardless of whether the underlying lien is valid, a property owner's first reaction to a lien filing is often to aggressively challenge the lien. It's a fairly natural (if not always well-reasoned) response - when your property is threatened, it's normal to feel attacked and want to go on the offensive. Of course, challenging a lien is often merely a reflex, and just because a property owner threatens lawsuit does not mean that there is an issue with the lien. We discuss that idea and more in this article: My Lien Was Challenged – What Do I Do? Regarding settlement - if an owner threatens lawsuit and offers an unfavorable settlement, there is likely an opportunity to negotiate more acceptable terms. But, once a settlement has been accepted, the lien claimant's right to recover via lien - and potentially via other avenues - will be lost. In a situation where lawsuit is being threatened and an owner has retained counsel, it might be wise to consult a local construction or real estate attorney to work on your behalf. Remaining unrepresented when the opposing side of a dispute has counsel is typically not the best method to move forward.
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