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Will sending a retraction letter impact ability to file a lien later?

My company sent out an intent to lien (public) on a project. This particular letter states we will put a claim on the bond in 10 days from the letter being received, which was about two weeks ago. However, we actually have over 2 months to file before the lien is due. Our customer was upset by receiving this document, claiming his customer has not paid him, which he is supposed to be paying us with. They would like some kind of a retraction letter to be done, but I want to find out of sending a retraction letter would have any impact on our actual ability to put in a bond claim if not paid?

1 reply

Oct 16, 2019

First, it's worth keeping in mind that documents like a Notice of Intent to Lien or a Notice of Intent to Make a Bond Claim are naturally and intentionally adversarial. By using these documents, a claimant lets their customer know that they're serious about being paid and that the claimant isn't afraid to take certain steps to recover payment, if necessary. So, it's natural for a customer to push back, somewhat, when these documents are sent. With that being said, retraction letters don't typically have an adverse effect on recovery rights. Though, before sending a retraction letter, it's a good idea to pore over the actual language of the retraction. That way, you'd be able to be sure that the document doesn't actually waive any rights. By and large, retraction letters very simply "retract" a letter previously sent. But, if the letter at all implies that the retraction has been made because payment has been made, or if the letter otherwise purports to waive rights, sending a retraction letter could negatively affect a claimant. Though, including language that clarifies the letter does not waive any rights might help avoid that possibility.

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