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Is Your Construction Company Facing A Fraudulent Mechanic’s Lien?

When working on a construction project, you may need to enlist the help of subcontractors and will you will likely need to work with other companies in order to get your supplies. Often, these business relationships can prove immensely useful, and your construction project can get underway and completed successfully.

However, it is not unusual for projects to hit snags along the way that can delay the project or put it on hold indefinitely. In particular, if subcontractors, suppliers or other parties claim that you have not paid them for their services, they could put a mechanic’s lien on the property. While these liens can be useful in legitimate cases, it is not unheard of for parties to make fraudulent lien claims.

Trouble for your business and project

If someone files a fraudulent or frivolous mechanic’s lien against your company, you could face a number of unnecessary difficulties. Of course, some people may file liens because they believe they have a valid claim, but others may use this tool as a way to get back at you or your company for something unrelated to the project against which the party filed the lien. Some examples of fraudulent liens include the following:

  • Filing a lien when the claimant did not work on the project
  • Filing a lien when the claimant received full payment
  • Filing a lien for personal reasons rather than legitimate business reasons
  • Filing a lien against a new construction project for a complaint associated with a previous project

In the last example, a subcontractor or other party may have originally had a valid claim for nonpayment, but because he or she did not file a lien within an appropriate amount of time, the party files a lien against a new project. However, that action would constitute an invalid lien.

Handling a fraudulent lien

While some liens may obviously appear fraudulent and not gain approval, others may require that you defend against them. Having a lien on a piece of property could greatly hinder your construction progress. Fortunately, you have legal options to address this type of scenario.

Working with an experienced Kansas attorney who understands mechanic’s liens and the damage they can cause could help you work toward the best results possible. Gaining information on removing such liens may help you get started on addressing your situation in an effective manner.

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