A contractor ran up a large bill at a material supply house to the tune of almost $70,000.00. The contractor unfortunately could not carry that tune. My client called me.
Upon careful review of the situation, I concluded that filing a mechanic’s lien was my client’s best and most economical bet for getting paid. I immediately obtained a copy of the deed to the property where the contractor had used my client’s materials to renovate an apartment building. Within days, I prepared the Notice of Contract and Statement of Account, two of the three steps necessary to create and enforce a mechanic’s lien. I then promptly sued to perfect the lien (step three).
The timing of the lien was perfect. The owner was selling the renovated apartments as condominiums. After intensive negotiations with the owner and the bank’s counsel, we agreed that my client would receive some of the sales proceeds from each unit in exchange for partial releases. Within forty days, my client received the full amount of its principal and interest.
Absent the mechanic’s lien, the only music my client would have heard was the “deadbeat shuffle.”
Although there is no fool proof way, we suggest foregoing the collection agency route. Immediately using an aggressive experienced commercial litigation attorney at the first sign of your customer’s financial distress may maximize your recovery and may allow you to get paid more and faster than your competitors.