Construction disputes are not going away any time soon, so every contractor will eventually be faced with the prospect of deciding whether to go to court to get paid for its work. Litigation in the court system has been the traditional collection method for contractors, but the length and costs of litigation mean that recovering might take years and absorb a chunk of your recovery, and the backlog in the court system has led courts to encourage litigants to seek alternatives to litigation – other means of getting paid.
Arbitration is an established alternative to court litigation in construction disputes. Challenging an unfavorable construction arbitration award is so difficult that homeowners may wish to give serious thought before submitting their disputes with contractors to arbitration. Courts give great deference to the decisions of arbitrators, refusing to review arbitration awards even for errors of law or fact. There are few exceptions to this rule, and courts only invoke them in rare circumstances.
We all know what a lien is. Depending on which side of the claim you’re on, a lien could be a good thing or a bad thing. According to Black’s Law Dictionary, the true definition of a lien is “a claim, encumbrance, or charge on property for payment of some debt, obligation or duty”. So, how is a Mechanics Lien any different?