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