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What rights do I have against someone who won’t pay me

I was hired to help a friend paint her house. I’m almost finished but weather has made it near impossible until spring. I asked for some, not all, of the money so I could make my house payment. This person led me on for a week,letting me think they were going to pay me all the way up to 1 1/2 hours before my payment was due. I am not licensed, although I was a few years ago. I have been painting for over 30 years and I do quality work

1 reply

Nov 25, 2019

First, note that if payment isn't actually due, per the terms of the contract, then it may be hard to force a customer to make early payment. Even in a situation where there isn't a formal, written agreement - whatever payment expectations were understood going into the job will generally apply. Now, if a customer is refusing to make payment, as agreed upon, then there may be some recovery tools on the table. Let's look at a few different options below.

Talking it out

Certainly, the easiest and fastest way to resolve a payment issue is by openly discussing the matter with the customer, where possible. Making sure you're both on the same page is crucial.

Invoice reminders

If a customer has been invoiced but hasn't made payment, sending a simple document like an invoice reminder may be all that's necessary to get paid. An invoice reminder provides an opportunity to speed up payment without escalating the dispute at hand into something more serious, and it can help to keep relationships intact while attempting to get paid.

Demand letters

If a payment issue is becoming a real problem, escalating things with a payment demand letter may be in order. A demand letter lets the customer you're serious about getting paid and willing to do what it takes to get what you're owed. But, demand letters generally include specific legal threats - so, if it's early in a payment dispute, taking things to the demand letter stage might be premature. In any event - demand letters can go a long way, as Levelset discusses in this article: Demand Letters for Contractors – How To Write One That Gets You Paid.

Notice of Intent to Lien

When a payment dispute is growing serious, sending a document like a Notice of Intent to Lien can go a long way toward getting paid. A Notice of Intent to Lien acts as a warning shot - it informs recipients that if payment isn't made and made soon, then a mechanics lien will be filed. And, considering the drastic nature of mechanics lien claims, the threat of a lien claim may well be effective to get paid. More on that here: What Is a Notice of Intent to Lien and Should You Send One?

Pursuing a lien claim or other payment remedies

Certainly, if things come down to it, there may be recovery tools available for contractors who perform work but don't get paid for it. For one, painters are generally entitled to mechanics lien rights in Oregon - so a mechanics lien claim could be on the table. As you may know, lien claims tend to force payment without the time or expense of pursuing legal claims. Further, if there's some contract for the work, then a breach of contract claim could be effective too. And, even if there's no contract at all, an unjust enrichment claim could be on the table instead. And, if legal claims do become necessary, proceeding in small claims court could streamline things.

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