Leman Development, Ltd., the original developer of Windmill Farms who Texas Environmental claimed last week in a public letter sent to homeowners in various portions of Windmill Farms, including Phases 1-3, owed an unpaid debt in the amount of almost $16,000, has responded by mailing a letter to all of the homeowners who received a letter from Texas Environmental.

In Leman’s response, they express their regret that Texas Environmental has “decided to escalate a private dispute over Texas Environmental’s bills into a form of economic terrorism”. Leman also asserts that Texas Environmental has no right to claim a lien against any individual homeowners lot and that Texas Environmental’s public letter may be a form of slander of title against the homeowners in Phase 3A of Windmill Farms. Read on for the entire letter from Leman, and more information…

Leman contacted me via email with a copy of the letter they’re mailing out, which appears below. Click on the letter to view a larger version, after which you may have to click on the letter again if your browser scales large images for you.

After the first story about this issue was posted, several homeowners who live in other areas that were serviced by Texas Environmental contacted me, and stated that at one point or another, they received a threat like this that was eventually resolved. Many of them indicated that they spoke with their lawyer about the letter and were assured that it was a groundless threat intended to scare homeowners into pressuring the developer to pay the amount that Texas Environmental wanted. Leman’s letter seems to confirm this.

Additional research through articles such as this one on FindLaw.com discussing Texas Mechanic’s Lien and Bond Claim Law indicates that this most likely correct. While I cannot provide legal advice, here’s what I’ve turned up from FindLaw.com and other sources:

“Texas Property Code §53.254(f) states that the affidavit [claiming a lien] must be filed by a person claiming a lien on a residential construction project not later than the fifteenth (15) day of the third (3d) calendar month after the day on which the indebtedness “accrues.” Texas Property Code §53.052(b). The definition of “accrual of indebtedness” is discussed in Section F of this paper.”

(Section F) “Texas Property Code §53.052(b) states the claimant’s debt accrues at different times, however, depending upon whether the claimant is an original contractor or a subcontractor. The debt to an original contractor accrues, by statute, either “on the last day of the month in which a written declaration by the original contractor or the owner is received by the other party stating that the contract has been terminated,” or “on the last day of the month in which the original contract has been completed, finally settled, or abandoned.” Texas Property Code §53.053(b) states indebtedness to a subcontractor accrues on the last day of the last month in which the labor was performed or the material furnished.”

So it does appear that there are deadlines involved, and that chances are, Texas Environmental has very much missed these deadlines. Furthermore, Texas Property Code §53.153(a) states that “If an affidavit claiming a mechanic’s lien is filed by a person other than the original contractor, the original contractor shall defend at his own expense a suit brought on the claim.” and Texas Property Code §53.153(b) states that “If the suit results in judgment on the lien against the owner or the owner’s property, the owner is entitled to deduct the amount of the judgment and costs from any amount due the original contractor. If the owner has settled with the original contractor in full, the owner is entitled to recover from the original contractor any amount paid for which the original contractor was originally liable.”

This leads me to believe (again, I am not a lawyer, so I highly recommend you consult with an attorney regarding your rights if you have received either of these letters or live in Phase 3A of Windmill Farms) that even if Texas Environmental is allowed to pursue the lien, homeowners should most likely be protected from it.

Slander of title, which Leman mentions Texas Environmental may have committed, is defined by Lawyers.com as “a false and malicious written or spoken public statement disparaging a person’s title to property that causes harm for which special damages may be awarded “. Texas Environmental’s statements very well could be false, are obviously written statements and they were mailed not only to Phase 3A homeowners, but also homeowners and other individuals that live outside of Phase 3A. If Texas Environmental acted with malicious intent and any damages occurred, then slander of title may indeed have been committed.

I am very disappointed and shocked by how Texas Environmental is handling this relatively small debt. It’s clear that the letter Texas Environmental sent to the homeowners, which asserts rights and makes threats that Texas Environmental most likely can’t carry out, was simply an empty threat attempting to make the dispute public and place pressure on Leman Development. It’s interesting to note that throughout all of this, Texas Environmental has not produced any documentation of the alleged debt, and the letter claiming that a lien might be placed against homeowners did not explain, justify or document the debt.

At this time, it seems to be a private dispute between Leman and Texas Environmental that isn’t likely to impact anyone else, including the homeowners in Windmill Farms, so unless there’s an extraordinary new development in this issue, hopefully this will be the last time we hear about this.