Am I liable for payment to a sub-contractor who was not paid by my general contractor?
Question Details:
I paid my GC in full a few weeks ago and am now receiving letters from a lawyer who represents a subcontractor on the job. He states that he hasn't been paid at all. Can he sue me or place a lien on my property even though I have paperwork to confirm payment?
You could be under several thoeries, including unjust enrichment.
The Massachusetts mechanics' lien statute enables subcontractors to place liens on the property where the work was performed, even if they had no contract with the landowner. If you paid the GC in full, including for the work performed by sub, then you have a defense against the lien. Feel free to contact me with any questions.
Good luck!
Matt
Did you sign a contract with this subcontractor or hire him? If you did--if you were the contracting or hiring party--then yes, you have to pay him. If the contractor was supposed to turn the money over to the sub but did not, you would then have a lawsuit (and possibly criminal complaint, for theft) vs. the contractor.
However, if it was the contractor who hired and contracted with the sub, then no, you do not have any liability to him. Only the person/business who hired the sub has an obligation to pay. There's no harm in that case in showing the sub's attorney proof that you paid the GC, since they may be contacting you because the GC claims he/she hasn't been paid--but again, if you didn't contract with them, you don't have to pay them.