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

In Washington, when a contractor fails to pay, the legal remedies available are based on the contract that was agreed upon. Generally, the options available are the filing of a lien, filing a lawsuit for breach of contract, or filing for arbitration or mediation. A lien is a legal claim against the contractor’s property and it prevents the contractor from selling the property until the debt is paid. A lawsuit for breach of contract is when a contractor has failed to fulfill the promises made in the contract and the party that was harmed can sue for damages or seek for an order requiring the contractor to fulfill the promises made. Arbitration is an out-of-court process where the parties involved present their argument to a neutral third party who makes a decision on the matter. Mediation is also an out-of-court process where the parties involved present their argument to a neutral third party, however the third party will not make a decision but will instead help the parties come to a mutual agreement on the matter. All of these remedies can only be used if the agreement was made in writing in the original contract. Before pursuing any of the remedies, the party that was harmed should consult with an attorney to ensure that legal action is the best route to take.

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

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