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What are our rights if we were hired by owner acting like a gc to lay hardwood floors no preliminary notice but stop pay

We are just my husband and I doing small side jobs and we agreed to do the work through text messages that I kept for a home owner acting as a gc and we were paid 1,000 of 3,500 for 2,300sqft.of hard wood. When we got to 2,300sqft.of we had asked for a payment of 2,200 and agreed to finish where they miscalculated. When they wrote a check for only 1,800 we packed up and said we would not return since it was 700 dollars less than agreed. The next morning we found out that they stopped payment on the check. Even though we did not send any notice before the work started we were also not gc I am in tn what rights do I have. Please help us

1 reply

Oct 24, 2019

When unpaid for construction or home-improvement related work, leveraging mechanics lien rights will usually be a great tool for recovering payment. And, as I believe you hinted at in the question above, lien rights do often come with some associated notice requirements. Finally, note also that mechanics liens are only one tool for payment recovery - and, there are a number of ways to force payment. With that in mind, let's dive into a few different ideas...

Notice required, but failure to send won't destroy lien rights

On owner-occupied residential projects, a contractor (i.e. someone hired directly by the property owner) is required to send a Notice to Owner under § 66-11-203 of Tennessee's mechanics lien statute. However, note that a contractor can still file a mechanics lien for their work. § 66-11-206(c) specifically states that failure to send the notice won't affect the lien rights of a contractor who has performed work.

Is a license required in order to file a mechanics lien on Tennessee residential property?

If a license is required for the work that's being performed, then the contractor performing that work must be licensed in order to file a valid and enforceable lien. Though, a license is generally not required unless a home improvement project exceeds $3,000. So, if the total cost of a contractor's work is under $3,000, then licensing requirements shouldn't be an issue. More on that here: Home Improvement Licensing Requirements.

Recovery options before filing a mechanics lien

Note that mechanics liens are generally the nuclear option. Attempting to recover payment in another, less formal way is generally preferable for claimants. By sending a document like a demand letter or even a Notice of Intent to Lien, a would-be lien claimant may be able to get paid without the need for the headache of an actual lien filing. More on that here: What Is a Notice of Intent to Lien and Should You Send One?

Sometimes, filing a mechanics lien will be necessary

Mechanics lien rights exist for a reason. Sometimes, a lien filing will be unavoidable. For more background on how to utilize Tennessee mechanics lien claims, here are two great resources: (1) Tennessee Mechanics Lien Guide and FAQs (2) How to File a Tennessee Mechanics Lien

Recovery options outside of the mechanics lien process

There are always options outside of the lien process that can lead to recovery. Leveleset dives into those in great detail here: Options For Recovery Outside of the Lien Process. Specifically, I think it's worth mentioning that when there are relatively small amounts in dispute, Tennesee small claims court might be a helpful option. Unlike traditional litigation, small claims court is a relatively efficient recovery option.

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