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Can Contractors File a Lien for Unpaid Work?

Posted by Cliff on from the taking-steps-to-insure-you-get-paid dept.

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)."

3 of 42 comments (clear)

  1. Interesting by 4of12 · · Score: 4, Interesting

    <ianal>

    IIRC, mechanics liens are not "active" devices for securing payment, but "passive" devices that prevent the property owner from getting a mortgage or otherwise transferring his asset by sale. A good title search puts the brakes on any kind of transfer, so they have to settle with you before selling assets with recorded titles and deeds like real property.

    I dunno if you need a contractor's licences to file a mechanics lien, but I think there may also be liens designed for suppliers of materials that are left unjustly unpaid.

    </ianal>
    --
    "Provided by the management for your protection."
  2. mechanic's leins by ender's_shadow · · Score: 3, Interesting

    you say you've checked out mechanic's leins.

    but you say you want $$$. mech's leins are only on the property that the mech is working on (ie your care, etc). if you're trying to get compensation, i don't think mech's leins are the way to go.

  3. You may be out of luck by azadrozny · · Score: 3, Interesting
    I am assuming you are asking this question because you are currently in the situation of being owed money by a company that is unable or unwilling to pay you for work that you have completed. What you need is a good lawyer. There may be State or local laws that help protect you. If the company is in bankruptcy you will want to make it know early in the process that they owe you money. You may not get everything you are owed, but perhaps a good chunk of it.

    If you are just getting into the business you will still want to seek advice from a lawyer. Ask about ways you can structure your contracts so that you get what you are owed. I would ask for a downpayment if you think the company may be short on cash. You can also bill them as you go, once or twice a month.