We were hired by a GC to do interior trim and custom cabinetry in a house. We have a mechanics lien in the works, but wondered what the process is to remove it if the builder comes through with payment. Also, does the homeowner have a leg to stand on to sue for any reason, like over-charging for work done, which is what the builder is telling them. This is not the case. There are several subs waiting for payment.
I like to say that people can try to sue for anything, but whether or not they are successful is a different matter. Property owners have defenses to mechanics liens, and if the lien is fraudulent or excessive there can be penalties for the lien claimant. However, to the extent that the lien complies with the requirements (timing, form, etc.) the dispute will likely be unsuccessful - what the GC tells the owner is inconsequential to the validity lien claim.
In order to remove a filed lien, a lien cancellation document can be filed in the same location in which the lien was originally filed. This can be accomplished quickly and easily here.
If you are paid, then you simply file a release of lien. If the homeower disagrees with your claim, the homeowner will file a notice to commence suit. You will then have a limited period of time to file a lawsuit making a claim for breach of contract. The homeowner would have a complete defense if they paid the general contractor the full contract price. Then your claim would be against the general contractor.