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What should I do?

ArkansasCollections

So, last month we were called out to a customer's home by the customer that had been damaged due to flooding. She told us she was having issues with the carrier and needed our help. We went out there, got all the legal paperwork signed, and proceeded with out normal steps. We put together an estimate, took her copies of all paperwork, got our original estimate approved in full by the carrier ($50,518.96), and then she told us she was waiting on the mortgage company to release her funds to get us started. After all this work, driving back and forth to her home (20+ minutes on way) multiple times, the hours spent putting a detailed estimate together and communicating with the carrier, she ghosts me and tells me she ended up hiring another contractor to do the work. I feel like she had a contractor on stand by the entire time, and falsely lead us to believe we would be doing the work in order to take advantage of our skills in getting estimates approved. I sent her a bill for 2% of the initial claim, which is pretty standard for outsourcing estimating.She hasn't paid. Do I legally have options to collect payment such as a lien?

1 reply

Sep 18, 2019
Mechanics liens are generally only available when work has been performed which permanently improves the project property. So, in a situation where estimates were done but no work was undertaken, mechanics lien rights would likely not arise. Note, though, that "appraisers" are entitled to mechanics lien rights in Arkansas - though, this appears to refer to licensed appraisers in the state. But, if a licensed appraiser provides services and goes unpaid for that work, then presumably that work will be lienable. Of course, filing a mechanics lien isn't the only way to recover payment. For one, even when a mechanics lien might not actually be filed, sending a document like an invoice reminder, demand letter, or even a Notice of Intent to Lien might be effective to get an owner to pay what they owe. Even in a situation where further action might not actually be taken - warning or threatening an owner of future actions might be enough to have them pay what they owe. Alternatively, if inspection fees are included in a contract for work, then making a breach of contract claim against a property owner may help to compel payment. Or, if there was no agreement requiring payment for the estimate, then something more like an unjust enrichment claim might be more appropriate. While taking an owner to court under these theories (or, really, any applicable theory) might be costly, risky, and time-consuming - Arkansas small claims court can generally be used for smaller payment disputes to efficiently resolve a payment dispute.
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