Issues with bad contractor now threatening to file mechanics lien

[Dustin Faeth]

We are finishing up a rehab project right now and the contractor that was doing the work was doing a horrible job, taking too long and causing a lot of issues, so I decided to fire him this past Friday and cut my losses.

I haven't paid him his final draw yet and based on the quality of work (or lack there of) and he was already at his time deadline based on our contract and had at least a third of the scope of work still unfinished or needing redone because of how bad the finish work was.

I tried to negotiate a final amount for us to agree upon to part ways and have the contractor sign the final lien waiver, but he is requesting more than what I think he deserves and he is threatening to file a mechanics lien against our property if I don't give him what he wants.

Any thoughts or suggestions on what my rights are and how I should handle this???

[Darrell Shepherd]

Whats your exit? A mechanics lien is just a notice that he intends to file suit, it doesn't mean much without the lawsuit that goes with it. It is definitely not that any contractor can encumber the property without a judge any time they want. A mechanics lien falls off in a year if he doesn't win a judgement, which I dont see in this case as you describe it. Around here, anyway, you want to check the laws in your state.

They do make it hard to sell until things are clear, though, if you aren't planning on keeping it. Sue for damages yourself if it was that bad and you wanted to head it off at the pass. The lien is essentially whatever the judge says when he rules, if you win, the mechanics lien is gone. Sue him for every penny you can imagine he owes you, it'll change his tune. Everybody threatens to sue, but when you actually do it, they act a lot different.

Its just a small claims case, cost $80 for the suit and $25 for the sheriff serving him around here. Either way, when the case is over so is his ability to lien your property for anything other than what the judge awards him in the suit, if anything.

If you can't agree on something, then that's what the courts are actually there for...let the judge decide. It'll change his tune if he realizes he could lose money himself. I'd sue him for any of the 1/3 you've paid for that he hasn't done or you have to redo plus interest costs for the time he cost you, plus court costs, etc. ANYTHING you can show a monetary loss on. Pretty easy to show that stuff if you keep good records. Depends on the $, of course if its worth it, but I personally dont let people steal from me.