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Can Contractors File a Lien for Unpaid Work?
How About This asks: "Typically contractors are considered unsecured creditors, and if a company is having financial problems it is the unsecured creditors that usually lose out the most, or at least that's my understanding. Is it possible for a contractor that did software design and programming work to file a lien against a company for not paying for work performed? My searches have revealed references to mechanic's liens against land and property, but nothing directly with technology/computer related areas. Anyone have any links to sites or pages with this information? Or references to good (CA) lawyers in this field that can explain things (and has a reasonable initial consultation fee since obviously money is in short supply)."
A mechanics lein prevents (more or less) the leined property from being sold. If it was purely an internal project then this wouldn't be the way to go. If the project was intended to be marketed, though, the company would have to settle with him before they would be able to sell it.
I don't know if a lein allows one to take posession of the affected property at any point, but that would certainly up the ante!
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It depends on the contract. For example, I am looking at one in front of me right now that says, "All disputes regarding this contract are subject to arbitration of the AAA". I don't know if that holds up in court or not... fortunately have never had to test the theory.
if the company has serial numbers they can show up on your doorstep with a cop and reclaim it, as well as file theft charges against you
your best bet so far is to send via certified mail a C&D -- assert your copyrights, and threaten and then absolutely try and file a UCC against them
it can and will prevent them from obtaining any kind of financing from a bank since it will stick out like a sore thumb
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