What are the legal remedies available when a contractor fails to pay?

When a contractor fails to pay in Minnesota, the legal remedies available depend on the type of legal agreement between the contractor and the person to whom they owe money. If the agreement is a contract, the non-breaching party can take legal action to recover damages. This can include suing for the amount owed plus interest, or for specific performance (ordering the contractor to perform the agreed-upon services). Another remedy is to place a mechanic’s lien against the contractor’s property, which allows the non-breaching party to collect back payments from proceeds of any property sales. This may only be possible if notice of the intent to file a lien was given prior to the breach. Finally, the non-breaching party can file a claim in Small Claims Court, which is available for disputes under $15,000 in Minnesota. The non-breaching party can submit evidence and have a judge decide the case. The contractor may be required to pay any judgments awarded. It is important to remember that these are only potential remedies and not guarantees that any of them will be successful. Consulting a qualified lawyer can help ensure that the most appropriate legal action is taken.

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What are the legal remedies available when a contractor fails to pay?

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