I have a carpenter that did work at my property never completed the work but us demanding full payment I have receipts of other carpenters finishing jobs that he was suppose to Finnish. He sent a notice to file lien. My house is currently under contract how do I avoid interrupting the sell and defending a fraudulent accusation?
Your question is entitled "Avoiding a fraudulent lien," but what you describe is not necessarily fraud. According to you, the liening contractor failed to finish work, and you hired others to do so. On these facts, there may be breach of contract. As for a Mechanics Lien, the law requires a lien to only reflect work in place. Thus, if the Mechanics Lien here refers to sums that exceed the value of work in place it may indicate a slander on title and, yes, potentially fraud. But fraud is very hard to prove.
Bottom line: what do you do now? You may demand that the contractor file a suit to foreclose his lien or his lien rights expire. But, if you do so the contractor may opt to file suit, which will only aggravate the situation.
This kind of situation demands an experienced Attorney to help guide the process and arrive at a resolution. I hope this information has been helpful. Best of luck!
If this is in Illinois, you should send a demand, under Section 34 of the Illinois Mechanics Lien Act, demanding that the contractor either file a lawsuit within 30 days, or their lien will be released. Also tell the contractor in that letter that, if they pursue their lien, you will file a counterclaim for slander of title, due to their lien being knowingly overstated.
If they do not act within the 30-day deadline provided by Section 34 of the Illinois Mechanics Lien Act, you should then send them a demand, under Section 35 of the Illinois Mechanics Lien Act, demanding their release their lien within 10 days. If they do not, Section 35 gives you the right to file your own lawsuit to declare the lien released, and gives you the ability to recover your attorneys’ fees in doing so, your actual damages due to the fraudulent lien being recorded, plus a $2,500 statutory damage.
If you would like to discuss further, don’t hesitate to call or email me.