What happens if you receive a check from a customer on the same date as the lien deadline and the check ends up bouncing

1 week ago
State: Texas

What happens if you receive a check from a customer on the same date as the lien file deadline (not filed yet) and the check ends up bouncing? Is there recourse without filing the lien since they did attempt to make payment?

Additional info about this contractor
Project Role: Equipment Lessor
Project Type: Residential
Attorney The Chapman Firm

Unfortunately not. Filing a lien (provided all other steps in perfecting that lien were taken) is the best method of protecting your right to payment. The lien can easily be removed once filed. 

I’ve seen your particular scenario play out before: you hold off on filing the lien because payment is promised and payment ends up falls through. At that point, you’ve forfeighted your lien rights (as long as the deadline is calculated properly) and your recourse rests with a breach of contract or quantum meruit claim instead. 

Disclaimer: The information provided is for informational purposes only, and should not be construed as legal advice on any subject matter. You should not act or refrain from acting on the basis of answer without seeking legal or other professional advice.
Your answer or comment:
Are you a Registered Expert?
You are not logged in and will be posting
anonymously. Log in Now
Get answers from construction attorneys and payment experts
120 Character Limit