I represent a contractor who signed a subcontract with a subcontractor on a Georgia job. The subcontractor then subcontracted to another subcontractor. The subcontractor's subcontractor was not paid by the original subcontractor. The second subcontractor filed a lien, but the contractor paid the original subcontractor for the work that the second subcontractor is claiming payment. How does Georgia law address this?
Your contract upstread likely requires you to resolve that lien claim. Unless the lien has been waived or a contractor's final payment affidavit was provided to the owner contemporeously with final payment and before the lien was filed, you will need to address the lien claim. What does your subcontract say? You can offer your sub an opportunity to resolve the lien claim. If it is not resolved promptly, your client will need to resolve it. The fact that your client paid the first tier sub is not necessarily a defense to the lien claim. Your client can always pursue his subcontractor for the damages incurred resolving the lien claim.