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What is the next step with an ongoing situation where we have already filed a lien?

We recently did a job for a contractor where we replaced the roof of a local business. The contractor got paid and ran off without paying us a thing. We have filed a lien against the business we did the job for but cannot get in touch or find the guy that ran off with the money. What is our next step with getting paid? Is there a way to demand payment from the owners of the building we placed the lien on? Thanks

2 replies

Sep 27, 2019

A mechanics lien is a claim against the improved property itself. If all of the specific formal, timing, notice, and filing requirements are met, and the lien is otherwise appropriate, it can be enforced through the foreclosure and sale of the underlying property to satisfy the debt. This obligates the owner to pay, or lose the property. For a mechanics lien in Louisiana, the property owner should have been served a copy of the lien claim when it is filed. While just being informed of a filed lien is sometimes enough to get the property owner to pay, that's not always the case. After a lien is filed, there is a limited amount of time that the lien remains effective against the property. If an action to enforce the lien isn't initiated within the appropriate time period, the lien expires and is no longer enforceable. In Louisiana, an action to enforce a lien must be enforced within 1 year of the date on which it was filed. In order to shake payment loose, a notice of intent to foreclose can be sent on the property owner to inform him/her that the a lawsuit will be forthcoming and they could lose their property if payment is not made. That document can be sent easily online, here. If a notice of intent to foreclose is unsuccessful, or if proceeding directly to a lawsuit is desired, a Louisiana attorney will be needed to assist with that action. A lien enforcement / foreclosure action is a full-blown lawsuit, so the assistance of a lawyer is beneficial (and mandatory for LLCs or Corporation lien claimants).

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Oct 10, 2019

Hey good question. The point of a lien is to get paid from the owner of the property or by the sale of the property itself for the work you performed. A lien is the only device that allows you to get paid by another party other than who you had a contract. Check out this post where I describe 9 Scenarios after a lien is filed in Louisiana. There are a few options of what you can do, but ultimately filing a lawsuit is the final recourse. Sue on the lien and try to collect from all available parties. Give our office a call if you have more questions or want to discuss in more detail. Smiley Law Firm 504-894-9653.

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