An Alternative Litigation Strategy to Lien Foreclosure
Sometimes it is a better strategy not to pursue lien foreclosure, but instead to pursue a prompt judgment on other claims. In a recent case, a subcontractor was owed a modest amount of money by the general contractor for work on a project. A mechanic's lien statement was served and filed on behalf of the subcontractor, but the general contractor still failed to make payment.
Although a lien foreclosure action was considered, it would have involved multiple mortgage companies, several dozen other mechanic's lien claimants as parties, and a property worth less than the claims against it. Instead of foreclosing upon the mechanic's lien, attorney John Trout recommended that our client pursue its claims against the general contractor and the general contractor's owners who had previously guaranteed the contractor's debts. Because the general contractor and the guarantors had no viable defenses against the client's claims, they did not oppose the claims and default judgment was obtained within sixty (60) days. Garnishment proceedings were quickly commenced, resulting in the recovery of a significant portion of the claim amount.
