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Withdraw intent to lien - time limit

We have filed an Intent to Lien. Our customer (the contractor for the project) has sent a repsonse from their lawyer. The lawyer states that we have 10 days from the date of the letter to withdraw our Intent or they will proceed with further legal action against us. My question is, the 10 day limit they have stated - is there any law or statute behind that or is that a policy/standard they are simply using for this case?

2 replies

Mar 20, 2020

It's extremely common for owners and contractors to immediately challenge all mechanics lien claims and even all threats of lien claims. And, often, they'll do so regardless of whether the payment claim is valid. So, before going further, this resource should be helpful: My Lien Was Challenged: What Do I Do? Regarding Maryland Notices of Intent to Lien - the Maryland mechanics lien statute doesn't contain any functional mechanism for retracting or withdrawing a Notice of Intent to Lien. So, in terms of "Is this legally required?" the answer would seem to be "No." But, something like a retraction letter might calm them down: How and Why to Send a Retraction Letter. Though, that might potentially affect lien rights if the Notice of Intent is retracted. Of course, that doesn't mean that a customer can't demand the notice be retracted, and they may well be serious about getting some sort of withdrawal, and they could potentially try and pursue some type of claim. But, as mentioned above, it's common for owners, contractors, or their lawyers to take offense to a potential lien claim, even if they do actually owe payment. So, whether or not their legal threats would carry water and should be taken seriously is a case-by-case situation. For insight into your particular situation, reaching out to a Maryland construction attorney could help.

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Apr 24, 2020

As a subcontractor, you have a very strong tool in your toolbox to get paid your outstanding balance in the Mechanic's Lien Law. Maryland especially is very protective of subcontractors and suppliers, and does not limit the lien remedy no matter how far down the chain you may be, or what the payment terms of the subcontract were. Pay-if-paid provisions, for example, are deemed contrary to public policy and not enforceable as a defense to a mechanic's lien (although they can be enforced under straight contract law). For that reason, a 10 day notice from a gc's lawyer to withdrawn your lien or else is somewhat laughable - unless, of course, your breached your performance or time requirements at the job, or are otherwise not entitled to a lien on account of legitimate backcharges, etc. If that's the case, your subcontract may contain a 10 day cure notice in the event of a breach or default, and the gc has characterized your notice of intent as a breach of contract. So, like many answers in the legal field, whether the gc's 10 day notice has any teeth behind it really depends on the particular facts and contractual language at play.

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