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Will a Judgement and Progress Payment Contract work if we place a lien on a customer's Gas Station?

We have a customer we supplied work to back in March/April. He has been in our collections agency for a few months. We do have a Progress Payment Contract and Judgement Contract with him. We are wanting to now file a lien against his site. we did not send certified notices, everything was done through email and with these two contracts. will that work if we place a lien on his Gas Station?

1 reply

Oct 29, 2018

I'm sorry to hear you've been going unpaid, but it's great that steps are being taken to recover payment. First, in Texas, unless a claimant has contracted directly with the property owner, some form of notice is required. This notice will depend on the type of project and on who the claimant is hired by. If notice was required but not sent, filing a valid mechanics lien is likely not an available option. You can learn more about Texas notice requirements at zlien's Texas Lien and Notice FAQ. Of course, other options for recovery could certainly be available. For one, sending a Notice of Intent to Lien to the customer, property owner, and to any other up-the-chain parties often works to compel payment. A Notice of Intent to Lien acts as a lien warning and states that, if payment isn't made soon, a mechanics lien will be filed. Considering mechanics liens are such a drastic remedy, owners and customers often take the threat of lien very seriously and won't be willing to try and call a claimant's bluff. You can read more about that document here: What Is a Notice of Intent to Lien and Should You Send One? For another option, a claim (or at least the threat of a claim) under the Texas prompt payment laws could be effective, as could other legal threats (or actions) like a breach of contract or unjust enrichment action. Specifically, where a confession of judgment has been signed, a claimant might be able to secure a judgment lien much more quickly and easily than if no confession of judgment were present. However, the process of securing judgment liens is a little outside of our expertise here at the construction legal center - so reaching out to a local attorney or to the attorneys at Avvo, Justia, or Lawyers.com could be more helpful in determining whether that's an available option. Further, zlien has recently created a community where those in the construction industry can ask and answer questions among other industry members, and the zlien Community members may have experience in situations such as yours.

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