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Would removing a tree off a customer's house fall under a Mechanic's Lien?

Our company did a bunch of storm damage tree removal for homes in southwest michigan last month and now several of these homeowners are not paying their bill so we are looking into alternative collections efforts. The research I've done so far makes it sound like filing seeking a judgement is the next best step and from there it sounds like filing a lien would be the next step. Would that be a Mechanic's Lien and does the rest of that sound about right? Thanks! Chris

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Nov 3, 2021

Actually I am not sure if removing a downed tree is "construction" according to the Michigan Construction Lien Act -- I have included the relevant sections of the law below and it seems like it might be included. BUT you must file a construction lien within 90 days of the last date of work at the property for the lien to be valid. . Sec. 103. (1) "Actual physical improvement" means the actual physical change in, or alteration of, real property as a result of labor provided, pursuant to a contract, by a contractor, subcontractor, or laborer which is readily visible and of a kind that would alert a person upon reasonable inspection of the existence of an improvement. Actual physical improvement does not include that labor which is provided in preparation for that change or alteration, such as surveying, soil boring and testing, architectural or engineering planning, or the preparation of other plans or drawings of any kind or nature. Actual physical improvement does not include supplies delivered to or stored at the real property. (6) "Improvement" means the result of labor or material provided by a contractor, subcontractor, supplier, or laborer, including, but not limited to, surveying, engineering and architectural planning, construction management, clearing, demolishing, excavating, filling, building, erecting, constructing, altering, repairing, ornamenting, landscaping, paving, leasing equipment, and installing or affixing a fixture or material, pursuant to a contract.

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Nov 4, 2021

You didn't indicate the sizes of these claims. A lot of work goes into filing a Claim of Lien. You have to get the exact legal description of the property, verify the property owner, fill out the lien form properly, can be tricky, and as James indicated must be recorded within 90 days at the Register of Deeds for that county. then serve a copy on the owner by certified mail. The lien itself does not enforce payment, that would require a lien foreclosure suit in the Circuit Court in that county within one year of recording the lien. if your claims are $1000 or less you can refer to a licensed collection agency. Or go to Small Claims Court, now up to $7000.

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Nov 4, 2021

I forgot to mention that the above response is provided as a courtesy and does not establish an attorney-client relationship. If you would like to contact me directly for a consultation, I am located in Port Huron (810) 987-3970. Since 1975.

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Nov 4, 2021

Thank you James, that is very helpful. I have reached out to collections agency to see what potential we have with that route.

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Nov 4, 2021

Thank you Mark, that is really good info. Most of the claims are $3k-$8k but there are a few larger ones all the up to $34k.

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May 9, 2023

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