Unfortunately, for the property owner, there is no automatic “defense of payment,” meaning, the owner who has paid a contractor for work on a job can be forced to pay the sub or supplier if either of those are not paid by the contractor.
That said, the owner can protect himself from paying twice for the same project or job by recording a copy of the general contract with the court before any work is performed on the project. Plus the owner may retain funds still payable to the general contractor, if the owner receives a sub’s notice of intent to obtain a lien. Alternatively, the owner may pay or settle, or compromise the lien claim and then bring an action against the contractor for subrogation for the amount paid to settle the lien, plus reasonable attorney fees and costs.
In defense of a lien claim, the property owner can formally (in court) challenge the basis for the lien based on a lien waiver, or (timeliness or factual basis for it), or if all else fails, post bond to lift the lien while litigation is pending; however, within a lien action, the Defendant cannot file a counterclaim (or joinder of other causes of action) to obtain an award for his own damages. Rather, in the lien action, the Defendant may offset the amount of the lien sought by pointing out his own damages, but he cannot receive a money award in the lien case. Any party seeking money damages can and should file a separate lawsuit to get money owed.
Contact our Pittsburgh mechanic’s lien lawyers for more information about defenses.
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