Was Your Mechanic’s Lien Rejected? Here are Your Options
Mechanic’s liens are an important tool for helping contractors get paid for their hard work. Nobody wants to get snubbed by a contractor, but contractors feel a certain level of reassurance knowing that they can file a mechanic’s lien to procure their compensation. When a mechanic’s lien is rejected, it can feel like a shot in the gut; after all, the mechanic’s lien is designed to protect contractors from being taken advantage of financially.
In many cases, your claim is valid but you failed to file correctly. Filing a mechanic’s lien can be confusing, but a Miami contractor attorney from Cotney Attorneys & Consultants can assist you with lien-related services including filing a Notice to Owner, Claim of Lien, Contractor’s Final Payment Affidavit, and more. Our Miami contractor attorneys can also help you take action if you filed a mechanic’s lien on your own and it was rejected.
Reasons for a Rejected Mechanic’s Lien
It’s not uncommon for a mechanic’s lien to be rejected. Some common causes of this include:
- Clerical errors
- Issue with the county recorder
- Flawed claim
- Missed deadline
Reviewing Your Options
If your mechanic’s lien has been rejected, don’t panic. Losing your ability to utilize a lien to collect any due compensation is unfortunate, but there’s still hope. Mechanic’s liens are reserved for construction industry professionals. Other industries aren’t as fortunate. Therefore, when you lose your right to file a lien, you will find yourself in the same boat as folks from other industries dealing with payment issues. Here are some your options if your mechanic’s lien is rejected:
- Notice of Intent to Lien: although sending this notice isn’t a surefire way to convince an owner to pay you, it does add some pressure due to the potentially exorbitant cost of a mechanic’s lien. If you live in one of the 10 states where a Notice of Intent to Lien is required before filing a mechanics lien, you won’t be able to utilize this tactic.
- Send to Collections: submitting a claim to a collections agency is another way you can potentially obtain the payment you are due. You will be required to assemble any relevant information regarding your claim before contacting a collections agency.
- Send a Demand Letter: sending a demand letter works similarly to sending a Notice of Intent to Lien, but it carries less power. Your best course of action is to hire a Miami contractor attorney who can draft a strongly worded demand letter to the owner requesting payment and presenting the grounds for potential legal action. In many cases, when an owner sees a legal firm’s letterhead, they will be more likely to take your demand seriously.
- Pursue Litigation: if your lien rights have already been compromised, you can partner with a Miami contractor attorney to pursue a different claim such as a breach of contract claim.
If you would like to speak with one of our Miami contractor attorneys, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.