We are a supplier for a general contractor and the end customer hasn't paid. Do we file a lien against the contractor who is our customer, or do we file against the property owner who is their customer?
When a mechanics lien is filed, it is filed against the property that is being improved, a mechanics lien cannot be filed against a person or company. This is, in essence, the power of a mechanics lien. It is a streamlined, cheaper recovery option when unpaid on a construction project. When attached to the owner's property, the owner will then put the pressure on the GC to resolve the payment dispute. These claims can be pursued while still leaving contract claims against your customer intact if the lien claim is otherwise unsuccessful.
So the short answer to your question is the lien will be filed against the owner of the property being improved. Keep in mind, that in order to file a valid Minnesota mechanics lien, you must have sent the required preliminary notice, (referred to as a Lien Claimant's Notice in MN). This notice should have been served on the property owner within the first 45 days of first providing labor or materials to the project. Failure to send this notice is fatal to your lien rights.
If you have served the preliminary notice in a timely fashion, then a lien may be filed no later than 120 days after the last date of providing labor or materials. For a full breakdown of this process see:
NOTE. The information presented here is for informational purposes only. It is not legal advice and should not be construed nor relied upon as such. Furthermore, this posting does not create an attorney-client relationship. If you need legal advice, seek the counsel of a licensed, local attorney.See More...See More...