Stop-Notice - Michigan

MICHIGAN UNPAID-CLAIM NOTICE AND NONCOMPULSORY PAYMENT-PROCESS REQUEST

Critical Use Warning

Michigan's Construction Lien Act does not make this letter a claimant-enforced “stop notice.” Service of this letter alone does not compel an owner, lessee, mortgagee, or construction lender to freeze, segregate, or pay project funds.

MCL 570.1110(7) instead operates through a contractor's or subcontractor's sworn statement. After the sworn statement is provided, the owner or lessee may withhold from amounts due for work already performed enough to pay listed subcontractors, suppliers, or laborers and lien claimants who provided a Notice of Furnishing. Withholding becomes mandatory under that subsection only upon a written demand from the contractor—not merely from the unpaid claimant. The owner or lessee may make qualifying direct payments from funds withheld.

Use this document only to notify the parties of an unpaid claim, provide supporting records, and request that the owner or lessee and contractor review the statutory sworn-statement and payment process with counsel. It is not a Notice of Furnishing, sworn statement, Claim of Lien, lien waiver, discharge bond, complaint, lis pendens, injunction, or agreement.

PART 1 — COUNSEL REVIEW AND LIEN-PRESERVATION CHECKLIST

Complete this part before sending the request. Do not assume that sending this request satisfies any item.

A. Claimant and Project

B. Notice of Commencement and Notice of Furnishing

• ☐ Counsel determined whether MCL 570.1108, MCL 570.1108a, or another statutory rule controls the Notice of Commencement for this project.
• ☐ Claimant obtained the recorded Notice of Commencement and used its owner or lessee, designee, general-contractor, property-description, and recording information.
• ☐ If Claimant is a subcontractor or supplier required to serve a Notice of Furnishing, it was served personally or by certified mail on the statutory recipients within 20 days after first furnishing under MCL 570.1109(1), subject to any applicable statutory extension or limitation.
• ☐ If Claimant is a laborer, counsel applied the distinct recipient, method, and timing rules in MCL 570.1109(2) or (3).
• ☐ If Claimant contracted directly with the owner or lessee, counsel confirmed the MCL 570.1109(1) rule that a contractor need not provide a Notice of Furnishing to preserve lien rights arising from that direct contract.
• ☐ A copy of every Notice of Furnishing and proof of delivery is retained.

C. Claim of Lien and Enforcement

• ☐ Any Claim of Lien was recorded in each required county within 90 days after Claimant's last furnishing under its contract, as required by MCL 570.1111(1).
• ☐ A subcontractor's, supplier's, or laborer's recorded Claim of Lien has the required proof of service of the Notice of Furnishing attached under MCL 570.1111(4).
• ☐ Within 15 days after recording, Claimant served the recorded Claim of Lien and associated proof as required by MCL 570.1111(5), and retained delivery proof.
• ☐ If foreclosure may be needed, the one-year period measured from recording of the Claim of Lien is calendared under MCL 570.1117(1).
• ☐ Counsel reviewed the complaint, party, sworn-statement, lis-pendens, circuit-court, priority, and remedy requirements in MCL 570.1117-.1118.

D. Sworn Statement, Payment, Waiver, and Bond

• ☐ The current contractor or subcontractor sworn statement under MCL 570.1110 has been requested, obtained, or identified as missing.
• ☐ Claimant's name, work, contract amount, payments, balance, wages, fringe benefits, and withholdings are accurately reflected where applicable.
• ☐ Any direct-payment request is limited to the process allowed by MCL 570.1110(7); this letter does not promise that Claimant can compel withholding.
• ☐ No unconditional waiver will be signed before the payment it acknowledges is actually received.
• ☐ Any waiver will use substantially the applicable statutory form in MCL 570.1115.
• ☐ Any proposed discharge bond will follow MCL 570.1116: filing with the proper county clerk, Claimant as obligee, and a penal sum of twice the recorded lien amount. A private 125% bond is not the statutory discharge procedure.

PART 2 — UNPAID-CLAIM NOTICE AND REQUEST

Date: [__/__/____]

Delivery method: ☐ Personal delivery ☐ Certified mail ☐ Courier ☐ Other: [________]

To — Owner or Lessee

Name: [________________________________]

Address: [________________________________]

Copy to — General Contractor and Claimant's Contracting Party

General contractor: [________________________________]

Contracting party: [________________________________]

Addresses: [________________________________]

Re — Project and Unpaid Claim

Project: [________________________________]

Property: [________________________________]

County: [________________________________], Michigan

Notice of Commencement recording reference: [________________________________]

Claim of Lien recording reference, if any: [________________________________]

Dear [OWNER / LESSEE / CONTRACTOR]:

[CLAIMANT] furnished the following labor or material for the identified improvement under its contract with [CONTRACTING PARTY]:

The total amount presently claimed unpaid is $[________________], subject to correction for documented payments, credits, approved changes, offsets, or other adjustments.

Claimant requests that the Owner or Lessee and Contractor, with their counsel:

1. obtain and review the current sworn statement required or permitted by MCL 570.1110;
2. compare the sworn statement with Claimant's attached Notice of Furnishing, invoices, delivery records, payroll records, waivers, and payment ledger;
3. determine whether the owner or lessee will exercise any withholding or direct-payment option available under MCL 570.1110(7);
4. provide any requested itemized statement of sums withheld or directly paid as contemplated by MCL 570.1110(7); and
5. notify Claimant promptly of a documented dispute, payment, statutory waiver request, or properly filed discharge bond.

This request does not state that the Owner, Lessee, Contractor, Mortgagee, or Lender is in default by declining the request. It does not create a three-business-day response period, a duty to segregate funds, personal liability, indemnity, a liability cap, a right to an injunction, automatic attorney fees, or exclusive venue.

If the Owner or Lessee elects to pay a lien claimant directly from an amount withheld, MCL 570.1110(7) requires at least five business days' notice to the general contractor before the owner's or lessee's first such direct payment in the normal-course-payment circumstances described there. This letter is not that owner-to-general-contractor notice.

Please direct a factual response to:

[CLAIMANT OR COUNSEL NAME]

[ADDRESS]

[EMAIL]

[TELEPHONE]

Respectfully,

PART 3 — ATTACHMENTS

• ☐ Contract, subcontract, purchase order, and approved change orders
• ☐ Notice of Commencement
• ☐ Notice of Furnishing and delivery proof, if applicable
• ☐ Invoices, applications for payment, delivery tickets, and payroll support
• ☐ Payment-and-credit ledger
• ☐ Current sworn statement, if available
• ☐ Lien waivers already provided
• ☐ Recorded Claim of Lien and statutory service proof, if filed
• ☐ Other: [________________________________]

Do not attach confidential personal, banking, tax, or payroll information without applying appropriate redactions and counsel review.

PART 4 — OPTIONAL RECIPIENT RESPONSE

Receipt is acknowledged only. Signing this section does not admit the claim, promise payment or withholding, waive any defense, or create a contract.

Claim Status

• ☐ Records are being reviewed.
• ☐ The claim is disputed because: [________________________________].
• ☐ The contractor or subcontractor has been asked to provide a current sworn statement.
• ☐ The claim appears on the sworn statement in the amount of $[________________].
• ☐ The owner or lessee elects to consider withholding or direct payment under MCL 570.1110(7), subject to counsel review and statutory notices.
• ☐ Payment of $[________________] was made on [__/__/____] by [METHOD / REFERENCE].
• ☐ A statutory waiver is requested for the payment actually made or to be made.
• ☐ A bond under MCL 570.1116 was filed with the [COUNTY] County Clerk on [__/__/____].
• ☐ Other response: [________________________________].

PART 5 — RESOLUTION AND DEADLINE RECORD

MCL 570.1118 places a lien-foreclosure action in the circuit court for a county where the property is located. The court may award reasonable attorney fees to a prevailing lien claimant; it may award fees to a prevailing defendant when it finds the lien-enforcement action vexatious. This request itself creates no fee entitlement.

Sources and References

• MCL 570.1108 — Notice of Commencement
• MCL 570.1109 — Notice of Furnishing
• MCL 570.1110 — Sworn statements, withholding, and direct payment
• MCL 570.1111 — Claim of Lien recording and service
• MCL 570.1115 — Construction-lien waivers
• MCL 570.1116 — Discharge bond
• MCL 570.1117 — Enforcement deadline and lis pendens
• MCL 570.1118 — Foreclosure forum and attorney fees