Mechanic’s Lien and Judicial Order to Freeze Insurance Proceeds Yields Excellent Recovery for Emergency Contractor

Recovered excellent mediation settlement for home improvement contractor who performed significant emergency tear-down and removal work of home destroyed by fire. The home was under-insured and heavily encumbered by mortgages, putting client at substantial risk of receiving little to no payment. Upon receiving case, we immediately investigated title and filed a Mechanic’s Lien under M.G.L 254 with the Essex Registry of Deeds, to secure the debt and prevent a sale or transfer of the subject property. We conducted a thorough investigation, contacting the property insurer and public adjuster for the homeowner to get a clear picture of available means to satisfy the debt. We further leveraged the client’s position by quickly filing a Verified Complaint with counts for Breach of Contract, Quantum Meruit, and Mechanic’s Lien. We additionally filed a Motion to Form a Constructive Trust on a Short Order of Notice, ultimately obtaining an order from Essex Superior Court to freeze the remaining insurance proceeds pending resolution of the case. With a lien in place and the insurance proceeds frozen, we had a very favorable position and proceeded to mediation, where the Defendant agreed to pay 95% of the amount invoiced.

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