I have a customer with 2 separate 300+ days past due invoices. They want to pay 1 invoice with a credit card and the 2nd invoice at a later unconfirmed date. If we provide them with a Release of Lien on the first invoice, does this compromise our rights for collection on the second invoice? The 2 jobs are un-related, but we want payment on both jobs because of their slow pay habit.
Do you have liens in place for both?
There are multiple considerations that might provide strategic legal leverage for a situation with more than one outstanding invoice owed from the same customer. Knowing this is a public forum, we provide only general information. Lien status, contract terms, relationship status, project specifics, jurisdiction & venue, and the amount owed on each invoice/project are within the checklist of considerations. Precise language of the release itself must be critically reviewed to see that it correctly matches expectations. Each situation is different. Each fact and each applicable legal concept matter because that is where we find the legal leverage to optimize net recovery on past due invoices.
My Predecessor unfortunately did not put any liens on either job.
Thanks
We are awaiting the Release form from the customer to see what the exact wording is. We know the situation is not the best it could be, but we are trying to protect ourselves in whatever limited capacity that we can.
Thanks,
You should make sure that any release presented to you pertains exclusively to a particular job. Unless your contract with the customer requires you to wait to start the legal collection process you are not required to wait for payment. If it a substantial amount of money you should consult with a lawyer about collecting these debts.
Thanks.
Take the win. Payment on one invoice will not affect your rights on the other if it is an unrelated job. Be VERY careful of the lien release that you execute. Contact a construction attorney for further ideas on your path forward.
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