The following are case studies of scenarios involving mechanics’ liens, showing the various processes by which payment may be obtained. These are only examples, however, not an exhaustive list of all possible situations.
Valid Mechanic’s Lien – Settled before suit.
In this case, the client properly perfected its lien. The general contractor had not paid the client because of a dispute between the owner and the general contractor. We were able to establish that there were no disputes over the client’s work. Through negotiations with the general contractor and the owner, an agreement was reached where the owner paid the amount due by means of a joint check to our client and the general contractor.
Valid Mechanic’s Lien – Suit filed.
In this case, the client was a subcontractor to the general contractor. A lien was recorded in timely fashion, and suit was filed to enforce the lien. Neither the general contractor nor the owner asserted there was any fault in the work performed. Through discussions between us and the owner’s attorney, and between the client and the owner directly, a settlement was reached. Originally, the settlement was structured as a payment plan; it was ultimately consummated as a lump sum payment.
Missed Lien Deadline – Suit filed.
In this case, the client contacted us after the deadline for recording a mechanic’s lien had passed. The client’s customer was sued under breach of contract. Through discovery, it was established that there were no claimed defects in the client’s work. The matter was settled on a lump sum basis, with a slight discount because the debtor had not been paid by the owner.
There are many other possible situations that can occur during the lifespan of a project, including bankruptcy. Ask us about your specific situation and we will deliver to you the security to collect your receivables. Call NLB today… 1-800-432-7799
