If a contractor files a lien against a property owner, who is responsible for the attorney fees if the owner offers a settlement?

In scenarios involving liens filed by contractors against property owners, the responsibility for attorney fees often rests with the filing party, particularly when the property owner offers a settlement. In Mississippi, as outlined in the relevant statutes governing mechanics’ liens, if a contractor pursues litigation and subsequently receives a settlement offer, the contractor is typically accountable for their own attorney fees.

This structure encourages contractors to properly assess the implications of filing a lien, as they may bear financial responsibility for legal expenses even when seeking settlement, distinguishing their risks and mitigating potential losses. If a property owner wishes to negotiate or settle, it's understood that the contractor would need to cover these costs personally, unless a mutual agreement states otherwise, emphasizing the contractor's active role in the lien process.

By understanding this, contractors can make informed decisions about pursuing liens and settlements, recognizing the additional financial risk involved in legal proceedings. In contrast, other options do not reflect the specifics of lien laws and the conventions surrounding settlement negotiations in such cases.