Homestar, a property preservation contractor, sued Safeguard for unpaid work but lost because it violated their contract by filing mechanics' liens in states where lien waivers are enforceable. The court ruled that Homestar breached the lien waiver provision and must pay Safeguard's damages. This case shows that if you sign a contract waiving lien rights, you cannot file liens in states that allow such waivers—doing so is a breach that can cost you money.
Read lien waiver clauses carefully before signing. They are enforceable in 8 states and unenforceable in 10 states, so the same clause may or may not apply depending on where the work is performed.
Filing a lien after signing a lien waiver agreement can trigger a breach of contract claim and force you to indemnify (pay back) the other party for all resulting costs and damages.
If you cannot afford to waive lien rights, negotiate the contract before signing. Once signed, filing liens anyway is a costly mistake that courts will enforce against you.