Statutory Damages for Filing a Fraudulent Contractor's Lien

As a contractor, you should be wary of the damages for filing a fraudulent lien found in Chapter 12.002 of the Texas Civil Practices and Remedies Code.  This provision provides that if a lien is found to have been filed fraudulently (as that term is defined in the statute and by Texas law), damages awarded can include the GREATER of $10,000 or actual damages to the property owner.  This means that even if the lien doesn't create any actual damages for the property owner (such as loss of credit, costs and issues with any mortgage holder, etc.), the property owner may still recover a minimum of $10,000.  Lien filing history and knowledge of the requirements and deadlines in the Texas Property Code play into whether a contractor knew or should have known the lien was invalid when it was filed.  Also, releasing the lien after being sued for filing an invalid or fraudulent lien may not resolve the issue with the property owner or absolve the contractor of liability under this statute.  If you are going to consider filing a lien, speak with a lawyer knowledgeable in construction litigation and collection first.  If you are sued by a property owner for filing a fraudulent or invalid lien, immediately seek out counsel knowledgeable in these matters. 

Child Support and Losing Your Job

What should you do if you lose your job and can no longer afford your child support?  Child support orders are based upon the amount of income you have at the time the order is entered.  They do not take into account any future circumstances, good or bad.  If you lose your job, or suffer a significant decrease in pay (such as changing jobs, losing your job, suffer a demotion or pay cut, or other such circumstances), you need to file a motion with the court to modify your child support obligation to take your changed circumstances into account and reduce the obligation.  The reason is that whether you can afford the obligation or not, it is a court order enforceable by the Texas Attorney General's Office.  The AG keeps records of all child support paid.  If a delinquency occurs, the AG's office can file a motion to enforce, regardless of your ability to pay or the wishes of the child's other parent.  Complaints about loss of income/employment at that point will be met with a statement that you should have filed a modification.  It is vastly easier and less expensive to modify in advance of an enforcement action, than it is to defend the enforcement action and modify at that point.  If you have lost your job or suffered a material change in income, seek out the advice of an attorney as to whether you may modify your child support obligation.