Canadian Contractor

Update on the client who claims their contractor has placed a fraudulent lien on her house

So much doesn't add up in this post from an aggrieved client. But the theme of contractors filing fraudulent or vexatious liens is a common one.

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March 1, 2019 by canadiancontractor

This is a follow up post from a homeowner who feels their contractor’s lien claim is nothing but “legal theft.”

Here is their original post from last October, and it seems things have only deteriorated since then.

Comments welcome below.

Our contractor seems to make his living suing owners. He treated us horribly, did not build as per contract or plan, kept giving us change orders and refused to build unless we paid them. This was a fixed price contract. He kept doing work not approved by us and he kept charging us. Then he put a false $102,000 lien on our house when we were paid up to date as per the contract. Now $20,000 later we are just waiting for a quantity survey, the rough copy of which states all the mistakes and how we should be credited for them, how there should be no lien. This company has an amazingly false website, they did not honour their contract. All we have from July 07, 2017 to now (Feb 25, 2019) is a barely framed house on a foundation, a roof, exterior doors and a basement floor. HVAC and plumbing is roughed in. That’s it. We had paid the contractor almost $90,000 for all the work complete, so how do they get off putting a $102,000 lien on our house?

This company has over 30 registered court cases against them. I talked to one client briefly as she stated she lost $25,000 to them last September. But she was just happy to get rid of them and hired someone else. They have ruined our life. Our house is now full of mold as its been sitting all winter after they abandoned the build five months ago. It’s taken us this long for us to save the money to prove the contract. This is not fair, there is very little help for the consumer…

We had no invoice, no warning at all about this lien. We have no clue what the $102,000 lien is for. How fair is that? They do not talk to you. Our lawyer has four binders of horrible texts, emails and bullying from our builder. They are big and rich so they don’t care. I believe this is some kind of legal theft. Anyone thinking of hiring a contractor, please check the justice system and how many times they have registered in the courts against customers. I really wish we had. We wish the law would change. There are bad contractors that use the lien system to make money. I believe we fell into that trap.

Della Mackie



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2 Comments » for Update on the client who claims their contractor has placed a fraudulent lien on her house
  1. Gino Di Ciocco says:

    Below are some ideas and defenses (in random order):

    1) The Lien Law requires the total value of the work to have been approved by the Owner. Therefore, unless they have a mutual signed formal document(s) showing a total of $192,000 (i.e. $90 paid, plus Lien of $102 for unpaid contract balance.), the lien cannot stand.

    2) Some jurisdictions permit the Owner to formally request a detailed Statement and Itemization of the Liened amount, which would provide you a “clue [of] what the $102,000 lien is for”. I’d have your attorney make a formal request.

    3) Your attorney could try to dismiss the Lien for “willful exaggeration” by the Lienor. If proven, some jurisdictions permit fines and recovery of damages against the person who filed the Lien, in addition to the company itself.

    4) Construction costs to correct or repair for mold caused by Contractor’s negligence failure to protect the work, could be a deduction to any amounts proven to be properly owed them in the lien.

    5) In the interim, you can “bond off” the Lien through a Surety (at a very nominal cost), which can be renewed annually.

    6) This would permit you to continue construction on your home at little risk — while the lien just sits there, until the Contractor files a lawsuit to foreclose on its lien – – which would ultimately be shown to be invalid in court.

    • Della Mackie says:

      Thank you for your reply, the problem is you need cash up front to pay your lawyers to help with this,, we did lots ourselves but we need a lawyer for the rest, Not everyone has thousands of dollars in a bank to pay legal fee, we are forced now to pay for 2 places and i lost my home base buisness because I cannot sell from the place i am tempera-rally in now, so income has dropped. So i think this buisness rely’s on breaking you so they profit. Thank you for the information on the mold, That is very helpful, as well as the rest of your reply,