The Power of Mechanic’s Liens

On Behalf of | Dec 18, 2020 | Construction Litigation

When the pandemic-driven business shutdowns started earlier this year, countless industries were impacted. The disruption in the supply chain was evident as retail stores struggled to keep items on their shelves. While toilet paper and handsoap shortages made headline news, another industry ground to a halt with work that went unpaid.

Construction nationwide faced challenges business slowed to a veritable crawl. The trickle-down effect saw construction companies not paid for their services.

Millions in Unpaid Invoices Required Action

Work on the MSG Sphere recently started up again following a five-month delay dating back to April of 2020. The cutting-edge facility was touted as a unique performance center with 17,000 seats that provides am immersive environment that “cater to all five human senses.”

While workers are looking forward to going back to work, the companies who contracted them want the compensation they earned. Three, in particular, have filed separate mechanic’s liens against the MSG Sphere for non-payment. In total, the unpaid invoices total approximately $3.3 million.

Liens are potent tools that allow the individual or company filing to legally claim the rights of assets that become collateral to satisfy debts. Mechanic’s liens can be attached to real property if there is a non-payment of services. Securing a judgment could lead to an auction where the proceeds go to the lienholder.

When going up against large construction companies building high-profile and long-anticipated event centers, the odds would typically not be in favor of smaller construction enterprises or individual contractors. A lien is a powerful weapon that helps to level the playing field.