TX STATETexas Court of Appeals, 13th District
2002

AMS Const. Co., Inc. v. Warm Springs Rehabilitation Foundation, Inc.

94 S.W.3d 152Texas Court of Appeals, 13th District • Decided 2002Remanded
Lien RightsCited 53 times

HOLDING

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 FINDINGS

Lien Rights

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.

FULL COURT OPINION