Legal Question in Consumer Law in Texas

Paying for Contractor's Business Troubles

We hired a contractor to remodel a rental house and signed the contract. A few weeks after we signed, we find out from the owner of that company (A), that his partner took money from the company (A), and that several sub contactors who had been working or have worked on our rental house have not been paid by the contractor. One of these subcontractors (B) has contacted us to let us know that they are intending to put a lien on the rental property until such times as company(A) pays them or until we, the owners of the rental property pays them. Work is not complete on the rental property because the handyman for company (A) hired has not been paid and will not return to work.We still owe company (A) money under the contract. We were told by the subcontracted company(B) that if we paid them the amount owned by company (A) the lien would be lifted and that company (A) could not sue us for non-payment. What would be the best avenue to go?


Asked on 5/25/05, 3:42 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Paying for Contractor's Business Troubles

If the contractor didn't pay the sub, and the sub let you know within a month of when the payment was due, you can pay the sub and deduct that from the contractor's portion unless the contractor signed a lien waiver, or "All Subs Paid" affidavit, when the contractor was paid. In that case, it is up to the contractor to fight the lien.

"The best way to go" now becomes an economic decision.

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Answered on 5/26/05, 6:36 am


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