Lien Laws: Can Attorneys And Law Firms Claim?

In the state of Georgia, attorneys and law firms can hold liens, which are legal rights to retain property owned by their clients until their fees for services rendered are fully satisfied. Liens can be attached to both real and personal property, and the process for doing so is governed by specific laws and compliance issues. Liens are an important tool for small businesses and construction professionals to initiate the recovery of money and enforce payment for goods or services provided. Georgia's construction lien attorneys play a crucial role in helping clients navigate the complexities of construction law and ensuring they receive the money they are entitled to.

Attorneys can have a lien on a client's papers and money

In Georgia, attorneys at law are permitted to have a lien on all papers and money belonging to their clients for services rendered to them. This is known as a retaining lien. Attorneys may retain these papers until their claims are satisfied, and they may apply the money to the satisfaction of the claims. This lien is superior to all other liens, except for tax liens, and no person is at liberty to satisfy the claim until the attorney's fees have been fully paid.

Attorneys' liens are the right of an attorney who worked on a matter to a portion of the recovery for a case. They are typically enforced when a client terminates their original lawyer and hires new counsel, ensuring that the original lawyer receives compensation for the work they have done. Attorneys' liens most commonly arise in personal injury cases, where the lawyer is not paid until recovery is obtained for the client. However, they can also come into play in other contingency cases where the attorney only gets paid after a successful resolution.

The nature and extent of attorneys' liens often differ from state to state, and some jurisdictions may only enforce them after litigation has commenced. In Georgia, attorneys' liens are allowed both for attorneys bringing an action for property and for those defending against such actions if the defense is successful.

It is important to note that the attorney's lien is discharged if the action is disposed of by operation of law or by a court ruling. Additionally, the attorney may choose to waive the lien or submit to a discharge, as they are not obliged to insist upon it.

Attorneys can discharge a lien or waive it

In the state of Georgia, attorneys can have a lien on all papers and money of their clients in their possession for services rendered to them. They may retain the papers until the claims are satisfied and may apply the money to the satisfaction of the claims. However, an attorney is not obliged to insist upon their lien or their right to collect the judgment or execution; they may discharge the lien or waive it.

A lien can be discharged by payment, expiration, or debt forgiveness. If a debt is repaid in full, the property lien can be discharged. This can be done by the landowner selling the property for more than the amount of the debt and using the proceeds of the sale to pay the debt, or by the landowner paying off the debt in full or through monthly payments over time while remaining the property owner. Once the lien is satisfied, the debtor needs to obtain written confirmation from the creditor that the debt has been paid off.

A property lien may specify that it must be paid off within a specific period, and if that period ends before the creditor renews the lien, it expires and is no longer an encumbrance on the property. In rare cases, a creditor may choose not to collect on the debt and relieve the debtor of their obligation to pay off their loan. In such cases, the landowner must still obtain written confirmation from the creditor and file it with the county recorder's office.

In Georgia, attorneys at law employed to bring an action for any property shall have a lien on the property recovered. This also applies to attorneys employed and serving in defense against such actions if the defense is successful.

Liens for services rendered

In the state of Georgia, attorneys at law are permitted to hold a lien on all papers and money of their clients in their possession for services rendered to them. This is known as a retaining lien or general lien. Attorneys may retain these papers until their claims are satisfied and may apply the money to the satisfaction of the claims.

Attorneys at law also have a lien on actions, judgments, and decrees for money, which is superior to all other liens except tax liens. This means that no person can satisfy such an action, judgment, or decree until the attorney's lien or claim for fees is fully satisfied. Attorneys have the same right and power over these actions, judgments, and decrees to enforce their liens as their clients have for the amount due to them.

In the case of real or personal property recovery, attorneys at law have a lien for their fees on the property recovered, which is again superior to all liens except tax liens. These liens may be enforced by mortgage and foreclosure.

The lien of an attorney is kept alive if the original open account is converted into a note under seal within four years, and the lien may be foreclosed at any time before the statute of limitations on the note expires.

It is important to note that the origination or procurement of a case by an attorney is not considered a service that confers value on a client. Therefore, in a breach of contract and negligent construction case, the subject matter against which an attorney's lien is attached must be the result of the attorney's labor. For example, in a settlement resulting in a construction company's repurchase of a house and a monetary amount above the purchase price, the additional monetary amount, not the house, is considered the "fruit" of the lawyer's labor.

Additionally, an attorney is not obligated to insist on their lien or their right to collect a judgment or execution. They may choose to waive the lien or submit to a discharge.

Liens for property recovery

In the state of Georgia, attorneys at law can have a lien on all papers and money of their clients for services rendered to them. This is known as an attorney's lien and is dependent on a valid cause of action. The attorney may waive the lien or submit to a discharge.

In the case of Medicaid, a lien can be filed on any real property owned by the beneficiary, including both homestead and non-homestead properties. The amount of the lien will be equal to the amount of assistance received. These recoveries are used to fund additional services for other Medicaid beneficiaries.

Another type of lien is a builder's lien, also known as a contractor's or mechanic's lien. This type of lien helps builders, contractors, and construction companies recover unpaid dues from a client. Real estate agents or brokers may also place a lien on a property for outstanding fees. Similarly, a homeowners association or condominium association can place a lien on a house if the owner has missed payments or dues.

Property tax liens are another type of lien that can be placed on a property. These liens give the government the right to recover unpaid property taxes by foreclosing on the property. Property tax liens take precedence over mortgage liens, so not paying property taxes can result in the loss of the property for both the owner and the lender.

Liens for construction projects

In Georgia, attorneys or law firms can have a lien on a client's property, and this is allowed by Georgia Code § 15-19-14. Attorneys at law have a lien on all papers and money of their clients in their possession for services rendered to them. They are allowed to retain the papers until their claims are satisfied and may apply the money to the satisfaction of the claims.

In the context of construction projects, Georgia's laws provide protections for those who contribute labour or materials to improve a new or existing home. If they are not paid for their work, they are allowed to file a claim of lien against the property. This is known as a materialman's or mechanic's lien. It is important to note that these lien claims are limited in their effect and expire by law within 12 months unless legal action is taken.

To ensure that everyone who contributes to a construction project is paid, the property owner or their contractor can file a Notice of Commencement in the county's real estate records. Anyone supplying materials or labour for the project must then send a notice to the property owner, or they may lose their lien rights. Obtaining Interim Lien Waivers is another way to protect against liens for work that has already been paid for. These are signed each time a payment is made, and they ensure that the contractor waives their right to claim a lien for that portion of the work.

For public works construction contracts in Georgia, Chapter 91-36 of the Official Code of Georgia applies to contracts valued at $100,000 or more.

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