A subcontractor (Bond) and supplier (Gateway Lumber) sued a property owner (Kagan-Edelman) for unpaid work on a restaurant buildout. The owner had paid the general contractor (Irwin) after receiving notice of unpaid claims from the subcontractors. The Texas Court of Appeals ruled that property owners are liable to subcontractors for trapped funds and statutory retainage, and that subcontractors' liens attach to the owner's property interest, not just the lessee's. The case was remanded for trial, giving subcontractors a significant win on lien rights.
Send written notice of your unpaid claims directly to the property owner, not just the general contractor. This notice triggers the owner's liability for funds they pay out afterward.
Your lien rights extend to the owner's fee interest in the property, giving you a stronger claim than relying solely on the lessee's leasehold interest.