Full question:
Can a lien value be amended to a greater value due to an accounting error - after the initial time period has expired?
- Category: Civil Actions
- Subcategory: Liens
- Date:
- State: Connecticut
Answer:
The answer may depend on the type of lien involved. If the lien was filed to secure payment of a money judgement, it may be possible to petition the court that entered the judgment to modify it.
If the lien is related to a worker's compensation claim and related personal injury suit, it is possible for the lien that was placed on the claim to be reduced or increased to correct the error. The interested party would have to petition the court and prove the error.
If the lien was related to a mechanics lien, a lien placed on real property to secure payment for home improvement work that was unpaid, then the situation may be more complicated. There is a risk that the contractor who overstated the amount of money owed by the property owner could lose his right to enforce the lien.
Generally, a general contractor can file a claim of lien for the unpaid contract price, while a subcontractor can file for the reasonable value of its work or materials or both.
While minor or inadvertent mistakes in allowing for credits or offsets might not invalidate a lien, a significant or intentional error almost certainly will.
Similarly, the amount owed (whether unpaid contract price to a general contractor or reasonable value to a subcontractor) must be calculated in good faith and with reasonable care. An intentional overstatement of entitlement will probably invalidate the entire lien. And even an unintentional overstatement can invalidate the lien if there was gross negligence in arriving at the numbers.
It may also be relevant to remember that even if a lien claim is invalid, it does not mean that other claims, such a breach of contract or quantum meruit, cannot be pursued. But a lien claim has obvious advantages over other claims, and losing it because of carelessness or overreaching in calculations can be a major disadvantage.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
