I'm a contractor that finished a job and received final check payment after final walkthrough with customer. Now, a day later, the customer ...

Question

I'm a contractor that finished a job and received final check payment after final walkthrough with customer. Now, a day later, the customer is calling and emailing me to not cash the final check. He has decided he is not satified with portions of the project and wants not only the final check back but the entire projects balance. What are my rights? Never had this happen and been in business for over 25 years.

Answer

A lot will depend on whether the customer attempts to stop payment on the check.

1. If you gave a final lien waiver in exchange for the final check and believe your work was ok, then you have a perfect right to attempt to negotiate the check and if the customer stops payment you still have your lien rights but then you know you wind up having to foreclose and settle (unless you can win).

2. You can accede to the customer's request (but then you ought to get back any final lien waiver) and consider liening the job to protect your rights. A lien waiver not supported by payment won't be valid.

Answer

Mr. Messutta is entirely correct, though I would emphasize that you are perfectly within your rights to atttempt to cash or deposit the check, and I think you ought to do that. This will create a win-win for you, since either the check will clear (and you will get your money) or the check will bounce, and you will have a stronger claim against the customer, because the customer is liable to you for non-payment of the check, in addition to being liable to you for your work and materials. You cannot collect twice, but it's always good to have two paths to success, and the customer's liability to you for writing you a bad check is cleaner and easier to prove, may give you a slightly larger recovery, and may not require you to foreclose. Rather, you may be able to collect on the check in a simpler manner. Most importantly, ascertain the deadline to lien the job, and unless you are absolutely sure the check has cleared as that date approaches, properly lien up the job, hiring a lawyer to do so, unless you are skilled at asserting liens, which is complicated.