Legal Question in Construction Law in Colorado
Fired business man threatening lawsuit.
I was having a fence built in my back yard by a fence company. The job was taking too long and he had gone through 5 subcontractors. As a result of his inability to finish the job I fired him. Later I come to find that he is not a contractor merely a business/sales man. Also during my fence construction he was either fired or let go from the company that I hired yet was still working on my job. I contacted the fence company and obtained a signed termination of contract letter from the president on the company. Now this business/sales man is threatening to place a lien on my home and sue me for money he says he spent. Can he do that? What is my next move? I thought I had all my bases covered.
1 Answer from Attorneys
Re: Fired business man threatening lawsuit.
Morning,
They may have a basis to file a lien. The lien statute is to protect "Every person who furnishes or supplies laborers, machinery, tools, or equipment in the prosecution of the work, and mechanics, materialmen, contractors, subcontractors, builders, and all persons of every class performing labor upon or furnishing directly to the owner or persons...."
There is some issue, naturally, as to his right to be able to continue the work after being terminated. That does not, however, mean that you can just expect to have work done without compensation. Even without a contract they could sue you on the basis of unjust enrichment or contract implied in fact.
As I just discussed recently here, Colorado lien law requires the party to comply with specific steps to be able to claim a lien. If those are not followed the lien may be void. That does not, however, mean that they cannot just sue. It just means that they cannot use a lien as a means to collect that compensation.
See if they send a notice of intent to lien and then contact a construction law attorney to discuss the issue.
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