Can a company enforce a lien in Montana for unpaid balance due to incomplete repairs?

[gertrudious]

Montana.

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My father signed a $25,000 partial bathroom renovation contract in Montana, USA, which included a mechanic's lien. After several issues, the company agreed to reduce the fee by $2,000. However, the fee addendum contract included terms that precluded reporting issues to the BBB and other entities, which my father did not sign. He paid the reduced final fee, but a plumbing issue followed, leading to a wall damage.
My father stopped payment on the final check of $10,500. The company repaired the plumbing but a 2'x3' area of the wall remained exposed. My father suggested completing repairs himself, along with an additional fee reduction. The company owner said he would first inspect the project, prior to coming to a new fee agreement. It has been almost one month and the owner has not made any communication regarding a site inspection.
My father has documented concerns throughout the project. There was no signed agreement for the initial fee reduction. The originally signed contract states a balance of $12,500 is due upon project completion.

Can the company enforce a lien if my father never pays due to incomplete repairs?
If my father pays the reduced fee without having signed the new agreement for the reduced fee, can the company enforce a lien?
If I report the company to the BBB or leave negative reviews, will this put my father at risk?

 

[adjusterjack]

Here are several resources regarding Montana lien laws.

https://duckduckgo.com/?t=h_&q=montana+tradesman's+lien&ia=web

Considering the amount of money involved and the potential consequences to his home, he would be wise to consult an attorney.

 

[quincy]

Montana.

​

My father signed a $25,000 partial bathroom renovation contract in Montana, USA, which included a mechanic's lien. After several issues, the company agreed to reduce the fee by $2,000. However, the fee addendum contract included terms that precluded reporting issues to the BBB and other entities, which my father did not sign. He paid the reduced final fee, but a plumbing issue followed, leading to a wall damage.
My father stopped payment on the final check of $10,500. The company repaired the plumbing but a 2'x3' area of the wall remained exposed. My father suggested completing repairs himself, along with an additional fee reduction. The company owner said he would first inspect the project, prior to coming to a new fee agreement. It has been almost one month and the owner has not made any communication regarding a site inspection.
My father has documented concerns throughout the project. There was no signed agreement for the initial fee reduction. The originally signed contract states a balance of $12,500 is due upon project completion.

Can the company enforce a lien if my father never pays due to incomplete repairs?
If my father pays the reduced fee without having signed the new agreement for the reduced fee, can the company enforce a lien?
If I report the company to the BBB or leave negative reviews, will this put my father at risk?

Your father can get his own site inspection.

If your father disputes the lien, the construction company would need to justify the lien in court to enforce it. A win in court for the construction company is by no means guaranteed, based on the facts you have provided so far.

You are not held to the terms of a contract your father signed.

 

[huddy61]

Generally, if the job isn’t finished-like that patch on the wall-the company can’t really lock in a lien for the full balance. Since he never signed the new reduction agreement, paying the smaller amount probably won’t count as agreeing to new terms, but they might still try to claim the original $12,500. You can totally report them to the BBB or post an honest review without risking anything legal-it’s your right to share your experience.

 

[quincy]

Generally, if the job isn’t finished-like that patch on the wall-the company can’t really lock in a lien for the full balance. Since he never signed the new reduction agreement, paying the smaller amount probably won’t count as agreeing to new terms, but they might still try to claim the original $12,500. You can totally report them to the BBB or post an honest review without risking anything legal-it’s your right to share your experience.

With a non-disparagement clause in a contract, however, a lawsuit can be filed against you if you publicly “share” a negative experience. Nondisparagement clauses have been challenged successfully in court but … it can be best to avoid breaching terms of a contract.

Also, while people can write negative reviews, it is important that the reviews stick strictly to the facts of the single personal experience and do not exaggerate or embellish or publish false facts. Negative reviews can spawn defamation lawsuits.

 

[not2cleverRed]

You can totally report them to the BBB or post an honest review without risking anything legal-it’s your right to share your experience.

Reporting to the BBB will do nothing to resolve the issue.

Can the company enforce a lien if my father never pays due to incomplete repairs?
If my father pays the reduced fee without having signed the new agreement for the reduced fee, can the company enforce a lien?
If I report the company to the BBB or leave negative reviews, will this put my father at risk?

1) Maybe. It depends on the terms of the agreement and how much effort they want to put into getting paid.
2) Maybe. It depends on whether an effective argument can be made paying the reduced fee is an implicit agreement to the terms of the new agreement. Oh, and see 1)
3) Maybe. Anyone can file a lawsuit.

However there is a legal process. Make sure that they follow it, and report any threats to the police.

 

[Taxing Matters]

it’s your right to share your experience.

But like most our rights we may voluntarily limit our rights. That's done in contracts all the time, like the non-disparage agreement involved here. If you then breach the agreement by disclosing matters that were supposed to be kept private you may find yourself subject to a lawsuit.

 

[quincy]

gertrudious would not be held to the terms of any “no disparagement” clause or agreement, however. His father is the one who contracted with the construction/renovation company. Even so, gertrudious could find himself in a legal mess if he unintentionally defames the company on his father’s behalf.

 

[Mark_A]

Reporting to the BBB will do nothing to resolve the issue.

This is correct. In fact many reputable business people have told me that almost every corrupt firm has a good BBB rating because the corrupt firms make sure and pay for the BBB membership fees. Many good companies have no BBB rating, or marginable BBB rating, because they don't pay the BBB membership fees.

These days Google and Yelp ratings are more important than BBB, although many of the 5-star reviews are fake and done by Internet Reputation Enhancement firms hired by companies, or in some cases the company tells all their employees to create fake reviews.

 

[quincy]

Better than a BBB website review or a Yelp-type website review - the sites of which are mostly a gathering of the gripes and rants of disgruntled customers - when you have a legitimate complaint about a business’s illegal or unethical or “shady” business practices, it is best to contact a state’s consumer protection office. Consumer protection offices not only accept consumer complaints, the states actually have the ability and resources to do something about them.

For Montana, here is a link to the Office of Consumer Protection, Consumer Complaints:
https://www.dojmt.gov/office-of-consumer-protection/consumer-complaints/