A construction lien is meant to ensure fair payment for hard work, but a few malicious actors manipulate this legal tool to place fabricated financial claims. Luckily, the state takes this seriously and imposes harsh penalties on those who do.
What makes a lien “fraudulent” in Florida?
Florida law aims to protect property owners from unjust financial encumbrances. Accordingly, it considers any construction lien fraudulent if a lienor:
- Willfully inflates the claim amount
- Charges for work they never did or materials they never delivered
- Compiles the claim with such gross negligence that it amounts to a willful exaggeration
Because of the severity of this offense, the state’s criminal justice system classifies these fabricated claims as a third-degree felony.
What will be the repercussions?
When a property owner files a civil lawsuit and the defendant loses the case, the lien will become unenforceable. Additionally, they have to pay the winner’s expenses, including:
- Attorney fees
- Funds spent discharging the illegitimate encumbrance
- Court costs
- Punitive damages
In addition to compensating the property owner, the defendant also faces the risk of criminal penalties. Should prosecutors pursue charges, they are looking at a maximum of 5 years of prison time and penalties of up to $5,000 if convicted.
Why honest mistakes won’t trigger penalties
The law is designed to be reasonable. An honest math mistake or a genuine disagreement over a bill won’t automatically trigger these severe punishments. However, if someone intentionally lies to cheat a property owner, the threat of prison time, hefty fines and paying the other side’s legal bills serves as a powerful warning against fraud in the construction business.
How a legal guide may help
Tackling Florida’s construction lien laws can be tricky, whether you are fighting a fake claim or defending your work. An attorney experienced in Florida construction law can help property owners quickly remove fraudulent liens and recover damages. For contractors, an attorney can help in payment disputes, severe criminal accusations and costly legal mistakes.