Legal Question in Credit and Debt Law in Georgia

It is legal and appropriate (assuming done correctly and timely). You can either pay the subs to get the lien removed, and pursue the contractor, or try to get the contractor to pay them.

As Scott corectly noted, it's legal. What you should have done, before paying the contractor, was to see proof he paid his subcontractors. That is how a homeowner must protect himself.

This is not a credit/debt question. You should talk with a consumer finance attorney.

In answer to your question, it is perfectly legal. The laws are set up such that where someone improves your property, they have to be paid. There are time limits and to protect themself, the subcontractor has to file a lien.

In the future, whenever a general contractor uses subcontractors, ask to see lien waivers from all subcontractors indicating that the subcontractors have been paid and will not be filing any liens before you pay the general contractor.

In answer to your dilemma, the other attorneys are correct. You can pay the subcontractor yourself and go after the general contractor for a refund OR you can be a pain and try to get the general contractor to pay the subcontractor.

If the general contractor refuses, pay the subcontractor as it will probably be required in order to get reimbursed. Then file a complaint with the Georgia Contractor's Licensing board. It may be that either the contractor has insurance or the board may have a client security fund set up, The licensing board has the ability to revoke the contractor's license or impose other discipline on him, powers which you do not have.

In the future, only use licensed contractors and make sure they have an insurance policy for errors & omissions (or a bond) covering the work. Sadly, there are lots of scam artists out there especially in this economy.