Mechanic’s Lien- Help.....

[Brian Reynolds]

Hello BP community! I’m reaching out to you all for some help/ advice on what I should do next.

Here’s the situation, I hired a contractor for a fix and flip project in Cincinnati, OH. It was a full renovation (new wiring, HVAC, insulation, drywall, plumbing, flooring, finishes, etc.). The contractor’s and I signed a contract for $80k with an eight week timeline. Obviously since I’m writing you he didn’t finish on time and went over budget. We verbally agreed that I would pay him $90k due to a change I made in the design and because I was unable to do some of the work I agreed to assist with to save on cost. We never signed any paperwork other than the initial contract. I made all installment payments to the contractor $67k in cash and the rest I purchased in materials for the project. The contractors still to this date has not finished the project and it is 36 weeks later. He continued to do work until late February when he “ran out of money” and I refused to give him any more. He has now file a mechanics lien on the property for an additional $20k+.

On a separate note, there is a separate mechanics lien on the property for the initial HVAC and electrical work that I paid him for and he never paid the sub-contractors. Needless to say I’m beside myself angry and looking to you all for what I should do next. I’m about 85% through this flip and have been doing most of the work myself but I live out of state so this is taking some time.

I’ve talked to a few different attorneys and no one will give me a straight answer if I have a case to fight these liens. Any advice or insight would be greatly appreciated.

Any questions let me know. Thanks

Brian

[Dan Bryskin]

@Brian Reynolds, sorry for your predicament, its not a pleasant one. You should get good local attorney, and I am no lawyer & laws a different and nuanced from state to state, but let me try to help: 

1. Generally owner has to pay only once. If you paid GC for electrical, electricians lien should not hold in court.  He should go after GC who hired him. 

2. Generally people can only place a lien for the work they done and did not get paid  for. So if you paid GC for more work then he delivered he has no grounds for lien & he may also be liable (criminally or civilly) for impending your property  

3. What I would do, is to get a good, reputable local attorney to write them a ¨big lawyer¨  letter, stating you case, demanding they provide you a lien release in consideration of  $1 dollar & may be threatening them with the consequences. 

Good luck ...