A Tennessee contractor completes a deck addition project costing $18,500. The homeowner pays $15,000 but disputes the final $3,500, claiming defective work. Under Tennessee lien law, the contractor can file a lien for:
Correct Answer
B) Only the disputed $3,500
Tennessee lien law allows contractors to file liens only for the actual amount due and unpaid, which is the disputed $3,500.
Why This Is the Correct Answer
Under Tennessee lien law, a contractor may only file a mechanic's lien for the actual amount due and unpaid. Since the homeowner has paid $15,000 and only the final $3,500 is unpaid and disputed, the lien may be filed for that $3,500. The existence of a dispute does not eliminate the right to lien — it limits the lien to the actual unpaid balance.
Why the Other Options Are Wrong
Option A: The amount due minus cost of corrections
Reducing the lien amount by the cost of corrections is not how Tennessee lien law works. The contractor's lien right attaches to the unpaid amount; any offsetting claims about defective work are resolved through the legal process after the lien is filed, not by pre-reducing the lien amount.
Option C: Nothing, due to the dispute
A dispute over work quality does not invalidate the contractor's lien rights. Tennessee law does not require the work to be dispute-free before a lien can be filed. The right to lien exists for unpaid, earned compensation.
Option D: The full $18,500
The contractor cannot lien for the full $18,500 because $15,000 has already been paid. A mechanic's lien is for amounts owed, not amounts contracted. Filing a lien for the full contract price when payment has been partially received would be improper and potentially fraudulent.
Memory Technique
Lien = What's LEFT unpaid. $18,500 total − $15,000 paid = $3,500 left. Lien only for what's LEFT. Simple subtraction is your friend on lien amount questions.
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