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Can we dispute a lien?

We remodeled our house. And at the end the company gave us an extra 1800 bill. theu charged us for stuff they never did, stuff they did but never gave us prices on or even told us they were charging. We have spoke with them about the unfair charges and the only thing they removed was the work they did not do. Now they want to put a lien on my house. They cashed our final check payment that was originally agreed upon. and in memo was written final payment. can i dispute this lien. Their bill never even showed prices for things until we askedm

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Jan 31, 2020

The easy answer first is that a lien may always be disputed. While the protection provided by mechanics liens is fairly broad, liens are only valid to the extent that there is money due to the lien claimant for labor or material furnished for the improvement of the property. If there is no money due (whether because it has already been paid, or potentially because the work was not authorized, or for some other reason), there is no valid lien right to be enforced. The enforcement of a lien is a lawsuit, and just like any other lawsuit, both sides have the opportunity to make their case and present evidence. Once a lien is filed, it must be enforced or it will expire. In Indiana, a lien must generally be enforced within 1 year from the date the lien was received for recording. However, that period can be dramatically shortened by a property owner that wants to get the lien off the property. If the property owner properly sends a 30-day Notice to Commence Suit to the lien claimant, which states that the failure to file suit within 30 days will render the lien null and void, the deadline to enforce the lien prior to its expiration is shortened to 30 days. Additionally, mechanics liens must not fraudulently overstate the amount due. In Indiana, the lien claimant bears the burden of proving that there was no fraud intended if the amount is incorrect or misstated. Further, Indiana allows for slander of title claims to be made against parties who publish (record) false words that result in damages to a party with an interest in property. Informing the potential lien claimant that damages may result from the filing of the lien and that the property owner will seek recovery to the extent an invalid lien is filed, it may cause the potential claimant to rethink the filing.

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Jan 4, 2021

So how does one prove the validity of the lien? I'm in the opposite position. I have filed a NOI because customers are refusing to pay me. I cannot afford a law suit, nor anymore of levelsets forms. So I am stuck...

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Jan 6, 2021

"Proving" the validity of a lien, if the interested parties are disputing the lien (or the amount due at all) is done through an enforcement lawsuit. If a lien is not successful in prompting payment by its filing and service, the lien must be enforced or it will expire.

A foreclosure lawsuit to enforce a lien is a full-blown lawsuit, so it is not necessarily an easy or cheap undertaking. In a successful action, courts may award attorneys' fees to the successful lien claimant, but it can take a lot of time and energy to get there.

Other than a lawsuit, it is difficult to "prove" a lien's validity - but that doesn't mean that a lien wouldn't be successful in getting a party paid. If the work was done, a lien can shine light on the fact that a claimant is unpaid when otherwise it may not even be known by the property owner or other higher-tier parties.

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Jan 9, 2021

You most certainly can. Give my office a call or shoot me an email. they could be clouding title. We can send a demand and initiate formal litigation if necessary based on facts of your case. Best, Nick PodlaskI 260.782.1712

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