Mechanic’s Liens

CONTRACTOR, SUBCONTRACTOR, OR MATERIAL SUPPLIER

Are you a contractor, subcontractor, or material supplier that was not paid on a construction project?  Our Denver contract lawyers will prepare, record and foreclose, if necessary, a mechanic’s lien to help you get paid.  There are, however, strict time limits to preserve your rights to a mechanic’s lien to avoid commercial litigation. Unfortunately, the deadline for recording a mechanic’s lien often runs while you are waiting for payment.

Additionally, the notice of intent and the mechanic’s lien must strictly comply with Colorado law or the lien will be invalid. If you record an invalid mechanic’s lien, the court should award the property owner statutory damages of $1,000.00 or actual damages, whichever is greater, plus attorney’s fees and costs.  Act early to avoid waiving your right to record a mechanic’s lien, and let us prepare the document  so you do not record an invalid lien.

HOMEOWNER OR PROPERTY OWNER

If a mechanic’s lien has been recorded against your home or property, a Denver contract lawyer will examine the mechanic’s lien to determine if it’s even valid  or not properly  recorded under Colorado law.  A mechanic’s lien may also be invalid if the amount of the lien is greater than the amount owed.  If we find the lien was improperly recorded or otherwise invalid, we first attempt to remove the lien without commercial litigation.

If litigation is necessary to remove an invalid mechanic’s lien, the court should award you statutory damages, attorney’s fees, and costs.  Additionally, if you bought a new single family home and paid the full amount owed, then you may have a defense under Colorado law that prevents lien claimants from enforcing their mechanic’s liens.  We can help you assert this defense or remove an invalid mechanic’s lien that was recorded against your home or property.

If a mechanic’s lien by a subcontractor or material supplier is valid, you may have a claim against the contractor under the Colorado Trust Fund Statute.  This statute provides that if you paid a contractor, the contractor shall hold the money in trust for payment of its subcontractors, material suppliers, and laborers.  If this money was not properly disbursed, you can sue the contractor for three times your actual damages, plus attorney’s fees and costs.  The contractor’s officers may also have individual liability for violating the Colorado Trust Fund Statute.  The contractor cannot avoid paying you by declaring bankruptcy because trust fund claims are not dischargeable in bankruptcy.

A Denver contract lawyer specializing in mechanics liens like The Silver Law Firm, LLC can help you collect from the contractor if a mechanic’s lien was recorded against your home or property because the contractor did not properly disburse trust funds.