The Assignment Process seems a bit abstract to many people at first, but it's really quite simple.

Assignment is nothing more than taking over a legal claim or right against a third party from another party who previously owned that right or claim.  Another way of putting it is that Assignment is the legal substitution of one person in another’s place.

Here is an example of a “Cause of Action” that might be assigned to our firm:

Mike and Kelli Homeowner decide to apply for a Home Equity Loan to pay off all their high interest credit cards.  To their dismay and much to their surprise, during the process they are informed that a Mechanic’s Lien has been filed against their home.  Already distraught over the news, they are then informed that until they pay the Lienholder the $1500 he is demanding, they will not be able to refinance or even sell their home.

Not knowing where to turn, the Homeowners consult with a lawyer.  The attorney tells them that it appears that they do have a “Cause of Action” against the Lienholder and that they can sue him.  However he then gives them the bad news.  They find that his fee to sue the Lienholder will cost them upwards of $2000 and then there are no guarantees they will win.

Sadly this is not an uncommon occurrence.  Sometimes it may result from the firing of an incompetent contractor.  Sometimes it may be that a contractor you hired didn’t pay his employees.  Other times you may not even have a clue as to who this Lienholder is.

This is where our firm comes in with a win-win strategy:

Through our new Texas Heartland Project, Mike and Kelli call our offices and speak with a specialist who listens to their dilemma.  Based on the conversation, the specialist believes that the Mechanic’s Lien is not in conformity with Texas State Law and our firm agrees to accept Assignment of Mike and Kelli’s “Cause of Action” against the Lienholder at no cost to them.  The Assignment Agreements are sent to Mike and Kelli who execute them and immediately mail them back to our offices. 

An Assignment has now occurred.  In the eyes of the law, our firm has effectively stepped into the shoes of the Homeowners, and assumed their rights to sue the Lienholder.  Any rights that the Homeowners had regarding this lien have been assigned to our firm. 

Once the agreements are received back at our offices, a specialist is sent to the County Land Records Office to investigate the filings against the Homeowners’ property.  Certified copies are purchased and assembled, and an attorney is hired at our expense to review the documents and render an opinion.  The attorney then files a lawsuit against the Lienholder and prepares numerous documents.  Shortly thereafter, the Lienholder receives a visit from a Deputy Constable who serves him with the lawsuit and a stack of various other discovery documents that must be answered in a timely manner.

Our attorneys then move for a quick judgment as the Mechanic’s Lien is not in conformity with the law.  After a favorable ruling an Order releasing the lien on Mike and Kelli’s property is entered into the County Land Records, and they are free to refinance or sell their home.  The damages that would normally have been awarded to the Homeowners, had they decided to hire lawyers and sue on their own, were assigned to us by Mike and Kelli.  This is how the firm is compensated for the overhead, employee salaries and remaining attorney’s fees.

If you received a letter from us regarding a Mechanic's Lien or other Cause of Action, Contact Us now at 972-617-7131.

Frequently Asked Questions Page