Sub-contractor violated their contractor by not having the equipment to perform the work and then hiring a sub-contractor to do the work (which is a violation of the signed contractor). We are a sub-contractor but our subs are not allowed to hire another sub to do the work as that would violate their contract with us and put us in default of our contract with the GC. The sub we had to fire is now he is threatening to file a lien. This lien would be totally invalid as he was paid for the small amount of work he did, even though we had to hire another sub to finish the job. Need to know if there are penalties for companies filing invalid liens in Texas, as he is threatening to do.
Hello,
If an invalid lien is filed, there is a legal motion that can be filed with the court which details how and why the lien is invalid. The Texas property code lists the different ways a lien can be invalid. If you are successful on the motion, the court may grant you your attorneys’ fees for having to pursue your claim to invalidate the lien. Additionally, there are laws that provide a penalty of up to $10,000 for every fraudulent lien filed, in which the person who filed the lien knew at the time it was filed that the lien was fraudulent. It is best to consult with an attorney who can review the lien and additional documents to make a determination of what your best course of action is.
Feel free to reach out to me directly if you have any further questions.
Thanks,
Kelly Stamy
Associate Attorney
8431 Katy Freeway
Houston, TX 77024
Tel: (713) 715-7334
Hello,
There are penalties for filing fraudulent liens. Under Chapter 12 of the Civil Practice and Remedies Code, a person may be held liable for the greater of $10,000 or the actual damages incurred.
Invalid liens are actually a seperate matter. Chapter 53.160 of the Texas Property Code list out the defects that would make a lien invalid.
E. Aaron Cartwright III
214-789-1354
Aaron@EACLawyer.com