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Thread: Liens and legal issues

  1. #11
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    Quote Originally Posted by goldstar View Post
    So far it's cost me $1K in legal fees to file the lien (and this is from a friend who is my attorney). I will have to ask him if the lien collects interest on a monthly basis if not paid. That might prompt a faster payment.
    Can you also try to collect attorney's fees?

  2. #12
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    Quote Originally Posted by Coppersmith View Post
    Can you also try to collect attorney's fees?
    Not in the case of lien. Had I been able to file criminal charges that might have been possible.

  3. #13
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    Quote Originally Posted by goldstar View Post

    On January 11th the GC issued me a check for $15.5K for the balance with the understanding that I would hold the check until the following week when he got paid from the garage owners.

    Within 2 days the check came back NSF. At that point I brought all my documentation to my attorney. He then advised me that bouncing a check for that amount is fraud and we should go after the GC on criminal charges.
    First off the laws for writing bad checks can be different for each state. I have no idea what your laws are.

    I have have been beat out of a little money the same way ( about $1500).

    I learned that you should never agree to hold a check for anyone and that you should never accepted more than one check for final payment. It should be one check and state that it's for full final payment. The way it was explained to me was that it's easy to give a person credit without really intending to. If you agree to hold a check then you are giving the person credit.

    The next problem you run into is the party that has the account. It's probably a business corporate account. Guess how much stuff that puts in the game?

    If I were you I would talk to the business owner and see if the GC got paid. Then start checking to see just who your were really dealing with. I found that the people I was dealing with had more bad checks come through a bank than you would believe. I threatened to sue the bank for leaving an account open just so these crooks could use bad checks ( they agreed to close the account). I might not get any money but I would go after his GC license.
    The 95% of people that you can't trust give the other 5% a bad name.

  4. #14
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    My thinking is that I should wait for the lien to be filed and completed first before I do anything else. I'll have to ask my attorney if I should reach out to the GC or the corporate office of the tire service company. But, thanks for your input anyway.

  5. #15
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    Jul 2005
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    The lien is pretty much useless because as long as the current owner doesn't sell, you get nothing.
    Also, your GC will probably file bankruptcy which means you are last on the list to get anything, if there is anything to get.
    I would go the criminal route on this guy

  6. #16
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    Having a contract won't guarantee you will get paid. Details in the contract may make it easier for a judge to make a decision when it comes to litigation.

    A judgement still doesn't guarantee you will get paid, it is just one more tool to help get paid.
    I live for today, I'm just a day behind.

  7. #17
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    Quote Originally Posted by goldstar View Post
    ..The long and short of this is – make sure you have a contract. In all fairness you’ll always need to have some trust in the people you work for and that they’ll pay you but, as President Reagan once said “Trust But Verify”. Verify with a contract and get progress payments if you can.
    Do you need a contract to have license board attach GC’s Bond.
    Roger Ramjet NoFixNoPay

  8. #18
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    Cherry Valley NY, Seattle, WA
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    Quote Originally Posted by goldstar View Post
    They will not be able to sell it until the lien is satisfied. That could be next week, next year or 10 years from now.
    Quote Originally Posted by Coppersmith View Post
    I have heard, but I am not sure, that liens in Florida have to be renewed every year and there is a fee to do so.
    Quote Originally Posted by Coppersmith View Post
    Can you also try to collect attorney's fees?
    Quote Originally Posted by goldstar View Post
    Not in the case of lien. Had I been able to file criminal charges that might have been possible.
    Quote Originally Posted by cdslotz View Post
    The lien is pretty much useless because as long as the current owner doesn't sell, you get nothing.
    What many people dont realize about mechanics liens is that the point is not really to just wait out till they sell or try to borrow against the property. Liens can, and actually have to before too long, be enforced or foreclosed. This means that if a judge decides in your favor, the county or other jurisdiction will foreclose on the property to pay your debt. You have to enforce the lien during its active period. It can sometimes be renewed but it varies from state to state. Whether you can collect attorney's fees also varies from state to state. Some say you can, some say you cant, some leave it up to the discretion of the judge.

    Generally when you go after someone legally, you throw everything at them. There are other options besides a lien. I currently have a suit against someone. We are going after them for 4 things: Foreclosing on the lien, breach of contract, fraud, and unjust enrichment.

    Remember just because you dont have a written contract, that doesnt mean you cant go after them under the contract law. Oral contracts are perfectly acceptable, although granted potentially harder to get a judge to see it your way if it comes down to "he said/she said."
    Ethan Brush - East West Electric. NY, WA. MA

    "You can't generalize"

  9. #19
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    Quote Originally Posted by electrofelon View Post
    What many people dont realize about mechanics liens is that the point is not really to just wait out till they sell or try to borrow against the property. Liens can, and actually have to before too long, be enforced or foreclosed. This means that if a judge decides in your favor, the county or other jurisdiction will foreclose on the property to pay your debt. You have to enforce the lien during its active period. It can sometimes be renewed but it varies from state to state. Whether you can collect attorney's fees also varies from state to state. Some say you can, some say you cant, some leave it up to the discretion of the judge.
    now, in the case of the OP, the bond is probably only $3k.

    claim it. it's $3k, and doesn't need any attorney costs.
    it also hangs the asss hats license.

    he will contact you and offer to pay to release the claim.
    he has to pay you all of the money, not just $3k. if he
    defaults, you get the $3k from his bonding company,
    and if that happens, he has to repay the bonding company,
    who will most likely dump him.

    do it tomorrow morning. i have had to do it once. i filed,
    and the next morning, the notice of claim went out.
    half an hour later, the guy called to pay up.
    wanted to know when the claim would be released.

    i said after the check cleared. i got all of it but $500,
    and it wasn't worth bothering about. i called the bonding
    rep, told him, and said let's park this. done deal. took two
    days.

    he has a new bonding company now. they dropped him.
    ~New signature under construction.~
    ~~~~Please excuse the mess.~~~~

  10. #20
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    Quote Originally Posted by electrofelon View Post
    Remember just because you don't have a written contract, that doesn't mean you can't go after them under the contract law. Oral contracts are perfectly acceptable, although granted potentially harder to get a judge to see it your way if it comes down to "he said/she said."
    In this particular case there was no "official" written contract. However, all the work was broken down into several different jobs, backed up by individual invoices (16 totaling $23,500.00) along with a periodic journal indicating what work I did and when I did it. The invoices and journal combined make up what would be considered an "implied" contract. If I had to go before a judge I can't imagine him not seeing it my way. The only thing the GC could say is that he didn't authorize me to do the work. But that won't hold water because he gave me a check for the balance of $15500.00 which ended up bouncing.

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