AMS Const. Co., Inc. v. Warm Springs Rehabilitation Foundation, Inc.
94 S.W.3d 152 | Texas Court of Appeals, 13th District | 2002
What This Case Means for Subcontractors
AMS Construction provided labor to a subcontractor on a hospital project but was denied a mechanic's lien by the trial court, which ruled AMS only provided administrative services. The Texas Court of Appeals reversed, finding genuine disputes of fact about whether AMS actually furnished construction labor and whether the defendant proved its defenses of estoppel and payment. This means the case must go back to trial because a judge cannot decide these factual questions alone at summary judgment.
Key Takeaways
- •Document exactly what labor your workers perform on site. Courts distinguish between actual construction work and administrative services like payroll processing—this distinction determines lien rights.
- •Preserve evidence of the work performed: timesheets, photos, daily reports, and communications showing your workers were on the job doing construction tasks, not just handling paperwork.
- •Don't let the other party claim you only provided administrative services without fighting back. Demand a trial if facts are disputed; summary judgment should not be granted when reasonable people could disagree about what work was done.
There is a question of fact regarding whether AMS furnished labor for construction.
Frequently Asked Question
Can I lose my mechanic's lien if someone claims I only provided administrative services instead of construction labor?
Not automatically. If there's a genuine dispute about what work you actually performed, you're entitled to a trial to prove you furnished construction labor. The other party cannot win on summary judgment alone if facts are contested. Document your workers' on-site activities carefully to support your lien claim.
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