How an Incorrect “Project Description” Destroys Mechanics Lien Claims
There’s a lot that goes into a Texas mechanics lien. The Property Code, Sec. 53.001, et. seq., sets forth a lot of requirements for mechanics liens to be valid. One requirement is a correct project description.
The Property Code requires a correct project description for almost everything relating to mechanics liens or bond claims:
- Pre-lien notices require a “project description.” Texas Prop. Code. Secs. 53.056 (a-2), 53.057(a-2) — required by a subcontractor in a pre-lien notice for unpaid work and unpaid retainage.
- Bonds claims on a public works project require “a description reasonably sufficient to identify the project.” Texas Prop. Code Secs. 53.233(5).
- An Affidavit for Mechanics Lien requires “a general statement of the kind of work done and materials furnished by the claimant.” Texas Prop. Code Sec. 53.054(a)(3).
In a recent case, a subcontractor filed its mechanics lien affidavit saying that it did “plumbing” work on a project. Then, when it filed it complaint to foreclose on the lien, it said that it did “plumbing and HVAC” work. So, it described its project one way in its lien affidavit, then described it a different way in its complaint.
The homeowners filed a motion for summary judgment against the contractor, saying that the contractor’s lien was not valid because it did not properly describe the project in its mechanics lien affidavit.
In an unusual move, the court actually granted the homeowners’ motion, and completely threw out the contractors’ lien. The contractor lost out on a $60,000 claim simply because it didn’t properly identify the project in its lien.
This case highlights the importance of having a knowledgeable attorney prepare your mechanics lien documents. Contractors who attempt to prepare liens themselves aren’t familiar with cases like these, and risk losing valuable lien claims over simple mistakes. Don’t risk it — let us at Texas Liens PLLC prepare your lien for you.
