Since small claims court must be less than $7000 in Massachusetts, and our invoice is closer to $9000, what other legal avenue can a contractor go to collect the funds owed?
2 replies
Feb 6, 2020
To address the first part of your question, it is generally not a best practice to send or attempt to file a mechanics lien that is known to be past the deadline for filing. While there can definitely be arguments in some cases such that whether or not a mechanics lien deadline has passed, in cases where it is known filing a lien can cause problems for the lien claimant. Filing a fraudulent lien is never a good idea. Besides potential criminal penalties, a property owner can claim damages for slander of title, or otherwise related to filing of an improper lien.
That being said, there are avenues for recovery of amounts due that are not mechanics liens or small claims court.
A party can file a lawsuit in "regular" court for a breach of contract, or pursuant to some other cause of action, like for example, a violation of the state's prompt pay laws. Before a lawsuit is initiated, demand letters can be sent, or an outside collections firm could be employed.
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Feb 7, 2020
In most cases, hiring an attorney will cost as much as giving up on the $2k and representing yourself in small claims court. If it's a renovation job, you may have access to the state arbitration program. Give me a call and I will walk you through your options.