I am a homeowner and hired a contractor to renovate my home. I paid the contractor in full and have a record of this (copies of checks). I received a phone call from the granite company used in renovations claiming there is an outstanding balance. I have an invoice from the granite company and under the "Bill To" section is the contractor's name and address. My name and address show up on the invoice under the "site" section of the invoice. The company has tried getting into contact with the contractor to no avail and told me that if payment is not received, they will put a lien on my property. Is this legal/possible? What recourse do I have?
From the facts you've presented, your contractor is the responsible party and should have paid the granite supplier. Unfortunately, an unpaid supplier can record a construction lien against your home even if you already paid your contractor in full.
However, you're not without a remedy.
If you can demonstrate that you paid your contractor in full (copies of canceled checks are a great start), you can be protected by Section 118a of the Construction Lien Act, which provides:
Sec. 118a. (1) A claim of construction lien does not attach to a residential structure, to the extent payments have been made, if the owner or lessee files an affidavit with the court stating that the owner or lessee has paid the contractor for the improvement to the residential structure according to the contract, indicating in the affidavit the amount of the payment. The owner or lessee shall attach to the affidavit copies of the contract, any change orders, and any evidence of the payment that the owner or lessee has, including, but not limited to, a canceled check or a credit card or other receipt.
But before there's a lien recorded or a lawsuit filed, I would write your contractor and report what the granite supplier is telling you. Ask if its true. If the contractor has paid the supplier, ask for a lien waiver or canceled check. If the supplier is correct, ask the contractor to make and confirm payment and request a Full Unconditional Waiver of Lien. (You're creating a paper trail; make and save copies of these communications.)
If your contractor doesn't respond or admits he didn't pay the supplier (unlikely), I would then prepare and send the supplier an affidavit relying on Section 118a. It may cause them to back off or give them pause. If it doesn't, you have a legal defense if the supplier files a lawsuit suit down the road.
If you'd like help with the affidavit, contact my office. I don't think LevelSet offers this form.
Peter Cavanaugh
Tel: (248) 543-8320