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ARTICLE · 13 JANUARY 2023

Deciding Willful Exaggeration Of A Lien Before Trial

Filing a mechanic's lien is easy. As those of my generation used to say, "all you need is a typewriter and a dream." Just fill out a form, sign it, and walk it down to the County Clerk's office...

United StatesReal Estate and Construction

Filing a mechanic's lien is easy. As those of my generation used to say, "all you need is a typewriter and a dream." Just fill out a form, sign it, and walk it down to the County Clerk's office and (for a small fee) you can file a lien on someone's property (assuming you file it within certain time constraints).

There are penalties for misusing that right. A fraudulent lien is void. A willfully exaggerated lien is void and subjects the lienor to damages equal to the amount by which the lien was exaggerated.

For example, if a contractor/lienor was owed $75,000 but knowingly and willfully filed a lien for $125,000 against a property owner, the court could strike the lien and award $50,000 together with certain other costs including any premiums incurred to bond off the lien and certain legal fees.

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