Home>Levelset Community>Legal Help>Can I file a mechanics lien for breach of contract ? The construction has not started but the homeowner has breached the
Can I file a mechanics lien for breach of contract ? The construction has not started but the homeowner has breached the
We have a solar customer that is trying to cancel his contract to go with a different company. We have gotten approvals from his HOA, City and Utility company and were days away from installing his solar system.
2 replies
Jun 12, 2020
Hello,
You cannot file a lien for work that was actually done, not a breach of contract. You can file a lien for unpaid materials or labor delivered to or incorporated into the project. However, when the project is on a homestead, the contract must be signed by both parties and all owners of the home, and the contract must be filed in the property records of the county where the property is located to file a lien. You may have a case for a breach of contract lawsuit, I would recommend you contact an attorney to see if the claim is worth pursuing.
Thanks,
Kelly Stamy
Associate Attorney
8431 Katy Freeway
Houston, TX 77024
Tel: (713) 715-7334
www.TheCromeensLawFirm.com
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Jun 13, 2020
In Texas, and in other states, a mechanic's and materialman's lien is for work actually done and material supplied. Loss of revenue, for example, or even merely breach of contract does not support a lien if no work performed under the contract. After all, the M&M line is not to enforce a contract. It is to get paid for work actually performed. Perhaps you can file a lien if you ordered pursuant to that contract and are committed for material that you can not soon use on another job. An example might be ordering solar panels designed for that particular job. This could support a lien. All of this of course depends on properly giving notices as required by the lien statute and following the procedures for residential situations as opposed to a commercial building situation.