GC threatening mechanic's liens but he signed a release of lien

[Dan Krupa]

Hey BP. I had a subpar GC. Late on work, not paying his guys, etc... I fired him and paid his guys myself. I have kept detailed notes, payment receipts for all draws, photographs, the scope of work, our contract, and I had him sign a release of lien waiver.

After I fired him I calculated the amount paid and the work completed to date. With late penalties, he technically owed me $12, which I waived. I sent him all of my documentation and he responded saying he was going to the city to put a mechanic's lien on my property.

I have the release of lien waiver and all my documentation. Is there anything else I should do proactively to protect myself and prevent the lien from occurring? Or is this simply a situation where I have to wait and see if he applies for a mechanics lien and then fight it?

Thanks, everyone in advance for any help you can provide.

[BB Liu]

Dan:  As you know, laws re mechanics liens are very state specific, but in case a lien is actually filed, I wanted to share something we have here in New York State:  In NY, if a mechanics lien is filed against the property, the owner has the option of serving upon the contractor a demand that the contractor file within 30 days an action in court to foreclose on the lien.  If the contractor fails to do so within 30 days, then the owner may go to court to seek an order discharging the lien.   

Hope this helps, and good luck!