Can I file a LIEN?
I sold some cabinets to a national homebuilder. Originally I was to also install them also but they decided after I had ordered the cabinets that I was too expensive. They picked up almost $40,000 worth of cabinets (7 homes worth that I had ordered and paid for and stored in my warehouse 2 months earlier). They signed a bill of sale stating they would pay my company in full in 10 days.
That was 5 weeks ago.
They have already delivered the cabinets to all the houses and someone else has installed them and still I have not been paid.
Can I put a LIEN on each of the homes that MY cabinets are now installed in? Should I call the homeowner first and tell him/her the situation and give them a chance to call their builder? Time is really tight.
This $40K has stopped my business cold and my bills are adding up. I live and do business in Mississippi.
1 Answer from Attorneys
Re: Can I file a LIEN?
85-7-197. Claim may be recorded in lis pendens record.
Any laborer, materialman or architect entitled, or who may become entitled, to a lien under this chapter, or to give hereunder a stop notice to any owner, shall have the right to record his claim in the lis pendens record upon compliance with the following requirements, to wit: (1) He shall reduce his claim for the lien to writing which writing shall show the basis of his claim and all of the parties thereto or to be affected by the lien, and such writing shall contain a description of the property sought to be bound, and it shall also set forth the rights claimed in the property to be bound, and the person claiming the lien shall make an affidavit to the writing. (2) He shall notify the owner in person or by certified mail, return receipt requested, and he shall attach to the original of the said notice an affidavit that the said notice has been given and the date and manner thereof. Thereupon said notice may be delivered to the clerk of the chancery court, who shall record the claim in the lis pendens record; and if in due form it shall be notice both of the lien and to the owner and all other persons interested, all of whom shall thereupon be bound thereby. Provided, however, that the aggregate amount of all the claims herein provided for shall not be a lien upon or bind the property for a greater amount than the original contract price or the amount of the owner's liability thereunder at the time the notice is filed, and in event said lien shall exceed the sum of the contract price or the balance due thereunder then they shall be paid pro rata; and, provided further, that no notice hereunder shall operate to extend the time during which the party entitled may bring an action on the claim or to enforce the right with reference to which his claim is filed, and when such rights shall cease, the notice hereunder given shall be without effect.
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