Homeowner Keeps Home After Retaliatory Lien Dismissed

Few things unsettle a homeowner like a lien. While such disputes often stem from unresolved payment matters between a homeowner and a contractor, this legal maneuver is a serious escalation, as it clouds your title and, if left unaddressed, can result in you losing your home. 

In this case, a dispute over co-ownership of the land resulted in a settlement agreement under which our client would buy out the opposing party and take over the property by quitclaim deed. But the agreement was contingent on the opposing party vacating the property on time, without leaving any trash or debris behind or causing any damage. 

Unfortunately, the opposing party breached those terms that our client documented in more than 200 photos. As a result, our client rightfully refused to pay the move-out payment outlined in the settlement agreement. The opposing party retaliated by recording a lien on the home for the exact amount as the move-out payment, placing a fraud alert on the deed with the county recorder, and opening a forgery case with county police. 

After filing a motion to transfer the case from small claims court to district court, our attorneys went on the offensive. They asserted counterclaims for breach of contract, fraudulent misrepresentation, private nuisance, conversion, and civil theft. The conversion and civil theft claims were tied to a property insurance check issued jointly to all parties that was cashed solely by the opposing party—funds our client never knew existed until the insurer flagged a possible fraudulent cashing. 

Given the breadth of evidence we had against the opposing party, we were able to settle the matter and dismiss the case with prejudice. This outcome forced the lien’s removal from the property and enabled our client to keep their home and put a lengthy dispute behind them for good.