Legal Question in Construction Law in Louisiana

Construction lein

I am a GC and I have recently finshed the last town home in a subdivisin that im building in. The framers I used were liscensed and insured. After all the work was completed, I paid them off and everything was okay, or so I thought. It turns out that they didn't pay their workers, so in turn, their workers put a lein on my property. I have paid for this work and dont think I should have to pay any more to anyone. What should I do?


Asked on 11/15/07, 12:29 pm

1 Answer from Attorneys

Scott Wolfe Jr. Wolfe Law Group, LLC

Re: Construction lein

First thing you would like to do is determine whether the lien was properly and validly filed. There are many technical requirements to a lien, and procedural requirements. It's possible that the lien was not filed according to statute.

If this is the case, you can request they remove the lien. If they refuse to remove it, you can bring an action in court to have the lien removed and charge them for atty fees and damages.

If the lien is removed, the laborers will lose their cause of action against you, and they will have to seek payment from the subcontractor. As the GC, however, you are liable to these laborers if the lien is proper (as is the owner of the property).

If the lien is proper, your next move should be against the subcontractor. You can (1) bring a lawsuit against the subcontractor directly; or (2) institute a concursus proceeding with the court to bring all parties to the table (laborers, subcontractor, you, etc.) to get the matter resolved.

In the end, if the lien is proper and the subcontractor is judgement proof, you will have some difficulty here. This is why it is important for you to obtain lien waivers from subcontractors upon payment.

You should consult with an attorney to review the lien and your circumstances to determine what is the best next step for you.

Good luck.

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Answered on 11/15/07, 1:36 pm


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