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Construction Case Study – Release of Wrongful Lien

November 2, 2012 DBL Law

Client Name / Client Descriptor

DBL attorney quickly and efficiently obtains release of improper mechanics’ lien filed against local construction company by a subcontractor.  

Practice Groups Involved

Construction Law, Civil Litigation 

Client Problem / Case Background

A disgruntled subcontractor walked off the construction site and abandoned the work it agreed to perform for the general contractor.  The subcontractor nevertheless demanded full payment for work it performed poorly and for work it did not perform at all.  The general contractor paid the subcontractor only for work it performed and performed correctly.  As a result, the subcontractor threatened filing a mechanics’ lien against the construction project.  

Firm’s Resolution to Problem

The general contractor contacted DBL Law.  It was concerned that a mechanics’ lien would disrupt payment from the owner to the general contractor and that it may harm their business relationship.  DBL attorney Ryan McLane recognized the potential problems, prepared a plan to address them, and acted.  

McLane contacted the attorney for the subcontractor and advised him that filing a lien under these circumstances would be wrongful.  McLane cautioned the  attorney that filing a lien would result in legal action for its removal, along with the recovery of any damages it causes.  As is often the case, the recalcitrant subcontractor directed his attorney to proceed with the improper lien.  

In the construction industry, actions speak louder than words.  McLane followed through on his warning and immediately initiated the legal process for removing the lien.  McLane also contacted the owner to assure him that the lien was meritless and would be removed without delay.  This approach addressed both of the general contractor’s concerns regarding removal of the lien and protecting its relationship with the owner. 

Confronted with McLane’s legal challenge, the subcontractor realized the futility of its gambit and relented.  McLane then arranged for the lien to be released.  The choice to work with the subcontractor’s attorney rather than steam ahead with litigation proved to be economical for the client.  Rather than costly litigation over a period of months, McLane got the lien released in days.  The client’s business relationship with the owner remained strong.    Highlight of Firm’s Capabilities

As a litigator trained in DBL Law’s Civil Litigation and Construction Law practice groups, Ryan McLane understood what it took to achieve a successful result.  McLane recognized the need to develop a multi-faceted plan at the outset and efficiently implemented that plan.  Despite the subcontractor’s initial persistence, McLane’s decisive response to filing the lien effectively ended the dispute as economically as possible. 

Attorney and Contact Information

Ryan M. McLane
Dressman Benzinger LaVelle psc
207 Thomas More Parkway
Crestview Hills, KY  41017
Phone: (859) 426-2143 (Direct)
Fax: (859) 341-1469
Email: rmclane@dbllaw.com
www.dbllaw.com (Website)
http://civilprocedure.dbllaw.com (Blog)

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