We have two perfected liens in Collin County, Texas and the GC has secured a bond to remove the mech lien off of the property on to the bond. The GC’s letter included in the bond documentation states that the lien funds will be released once the court determines the validity of the liens. To date, no filings have been made. Is there a time limit on the GC filing in Court? And, if not, we would like to know if we as the subcontractor has the right to file and request the court/judge for a declaratory judgement? It appears the GC is sitting on this. Whether we have the legal right to file for a declaratory judgment for the judge to declare the lien valid so that bond company will release funds on the claim.
Generally, a subcontractor has to file suit to enforce its properly perfected lien before the limitations period expires. If suit is not filed by the subcontractor, his lien lapses at the end of the limitations period by statute. A bond to indemnify against lien only acts to substitute the bond for the owner's property interest as security for the lien. You still have to prove up the underlying past due payment claim in court before you can collect against the bond. Sometimes, a contractor will file a bond to appease the owner when the contractor plans to fight the subcontractor's claim, rather than just pay. Good luck.
File suit against the contractor and the bond company to collect your funds.
If you do not file suit then you will never be paid.