A subcontractor performed electrical work worth $12,000 on a project in Alabama. The general contractor hasn't paid, and the subcontractor wants to file a lien. The property owner paid the general contractor in full. What is the maximum lien amount the subcontractor can claim against the property?
Correct Answer
C) $0
Under Alabama law, if the property owner has paid the general contractor in full, subcontractors generally cannot lien the property for unpaid amounts.
Why This Is the Correct Answer
$0 is correct because Alabama lien law protects an owner who has paid the general contractor in full. Once full payment has flowed from owner to GC, the subcontractor's lien rights against the property are extinguished. The sub's only remedy is against the GC directly, not the property.
Why the Other Options Are Wrong
Option A: $6,000
$6,000 (half the contract amount) has no basis in Alabama lien law. There is no provision splitting the lien claim at 50% in this scenario.
Option B: The amount still owed by the owner to the general contractor
The 'amount still owed by the owner to the GC' would be $0 since the owner paid in full — but this option frames the logic incorrectly. Even if framed as a formula, the result is still $0 and for the right reason: full payment eliminates sub-lien exposure.
Option D: $12,000
$12,000 would only be valid if the owner had NOT paid the GC. Since full payment was made, the subcontractor cannot reach the property for the full contract amount.
Memory Technique
Think of lien rights as a chain: Sub → GC → Owner. If the owner already broke the chain by paying the GC in full, the subcontractor cannot reach the owner's property. 'Full pay = no lien day.'
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