When Should I file a lien in Viriginia

2 months ago

I am a material supplier based out of Washington state, we supplied materials to a commercial job in Virginia. The last date that we furnished materials is 2/23/20. The contract is with the General Contractor. We are having difficulty getting payments. The project is with a large established general contractor, and their client is a large financial institution. They have claimed that payment will be received from the client around 5/23 and disbursement of funds to us will occur after they receive payment from the client.

We want to protect our legal rights, especially in this economy. But we also don’t want to harm our relationship with the parties involved.

Principal Attorney Katz Law
5 reviews

The time frame to file a Memorandum of Mechanic’s Lien in Virginia is 90 days from the last day of the month in which you last furnished labor or materials. So, if you last furnished materials on February 23, 2020, you would need to file your Memorandum within 90 days of February 29, 2020, which would be May 29, 2020. As this date is only a short 3 weeks away, I believe it is vital that you file a Memorandum of Lien now, and if payment truly arrives shortly after May 23, the Memorandum can be easily withdrawn.

Also, Virginia has a unique 150 day “look-back” rule, which means with the exception of retention, no lien is valid for labor or materials furnished more than 150 days from the date of filing. Under this rule, even if you filed the lien today, you would not be able to secure a lien for the value of materials furnished prior to December 12, 2019.

Mechanic’s liens in Virginia are tricky, and professional help should be sought. You can reach me through my Levelset profile if you have any further questions.

Good luck!

Disclaimer: Disclaimer: This communication does not constitute legal advice, is not an engagement for the provision of legal services, is not a consultation, and does not form an attorney-client relationship between Katz Law, LLC and yourself or any other person or entity. In all cases, any particular outcome or result is very highly dependent on the given facts of a particular case, including the contractual language at issue, such that anything provided herein may well be inaccurate given the facts of your case. In all cases, the advice of a competent construction attorney licensed in your jurisdiction should be sought through the ordinary engagement and/or consultation processes. I can be reached through Levelset for further inquiries.
1 found this helpful
Guest
Anonymous

Joseph, Thanks We are planning on filling today.

Attorney Steven Krieger Law, PLLC
3 reviews

Just to reiterate what Joseph said: if you wait until the 5/23 promised date for payment, you won’t have time to file the lien. So, if you haven’t filed yet, I’d do that ASAP. It’s also fine to be open with the general contractor about why you’re doing this and that you’re more than happy to withdraw the lien when payment is received. If you decide to hire an attorney, I’m sure anyone who responds would be happy to help. Good luck!

Disclaimer: Disclaimer: This response or communication does not constitute legal advice, is not an engagement for the provision of legal services, is not a consultation, and does not form an attorney-client relationship with Steven Krieger Law, PLLC. Further, should not disclose confidential information related to your case on forums. If you'd like a consultation, we're happy to help and I may be reached through my Levelset profile.
1 found this helpful
Guest
Anonymous

Steven thank you! We did file a lien and have been very open with them that payment will quickly resolve this issue.

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