Make the Pre-Suit Settlement Offer before a Lien Foreclosure

You are involved in a payment dispute with your contractor. The contractor records a lien against your property. What do you do?

Sometimes the best thing to do is to make a good faith settlement offer.  Offer an amount of money that you believe in good faith is a fair resolution to the dispute.  Why?

There is case law that says that to be the prevailing party for purposes of attorney’s fees in a construction lien action, the party must recover an amount in excess of what was offered prior to the lawsuit.   Hence, if the contractor rejects this offer, you have now created a defense as to the contractor’s right to recover attorney’s fees, particularly if the contractor is unable to beat that earlier settlement offer many months (or years) later when the dispute is resolved.   For more information on this, please check out this article.

Please contact David Adelstein at dadelstein@gmail.com or (954) 361-4720 if you have questions or would like more information regarding this article. You can follow David Adelstein on Twitter @DavidAdelstein1.

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