Overstated Lien Amount

#8 of the Top 10 Misconceptions about Mechanic's Liens

If at trial the court determines that a claimant’s mechanic’s lien is greater than the amount that the claimant is actually owed, the claimant loses his entire mechanic’s lien rights and is denied a judgment on his mechanic’s lien

An overstated lien amount will cost you your mechanic's lien rights.

This is true only if the claimant willfully overstated the lien amount on his mechanic’s lien.

If the overstated lien amount on the mechanic’s lien was due to an error or on the basis of a good faith belief that the amount was accurate, the mechanic’s lien amount will be adjusted at trial with the ultimate judgment amount being entered for the appropriate amount, and the claimant will not lose his mechanic’s lien rights as to the valid amount of the mechanic’s lien, due to a mistakenly overstated lien amount.

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Above article written by:
David J. Barnier,
Partner at Barker Olmsted and Barnier, APLC

Disclaimer -
This article presents a discussion of general laws, rules, and strategies related to mechanic's liens and other construction issues and is intended to provide background information that will assist the reader in understanding the general laws and rules that apply. Examples and hypotheticals are described in this article for the purpose of illustrating these general rules, however no information within this article should be relied upon when analyzing a specific real-life situation.

For each real-life situation that the reader experiences, it is necessary that the reader consult with an experienced construction law attorney to ensure that the reader's specific situation is evaluated. The laws and rules affecting mechanic's liens and construction are extremely complex and no attorney can provide in a writing an explanation that will empower the reader to use only the information in an article to evaluate how the law will apply to a specific real-life situation. In other words, the reader should not rely on the information in this article when addressing a particular real-life situation.

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