The New Mexico Department of Justice (NMDOJ) recently took action against a local construction company that allegedly filed invalid liens against the unsuspecting owners of nearly 200 properties in Albuquerque.
Boreworxx Construction is based in Aztec and specializes in underground utility work, excavation and grading. According to state records, the company’s owner, Jeffery Dailey, allegedly filed the liens as leverage in a contract disagreement with another company, Circet USA.
Boreworxx was a subcontractor to Circet USA on a fiber-optic infrastructure project in Albuquerque that involved installing fiber in city-owned areas. After completion, Circet USA complained about the quality of Boreworxx’s work and refused to pay what it owed the company in full.
According to the state, Boreworxx filed liens totaling roughly $1.9 million against 152 properties owned by individuals across Bernalillo County who had no contractual relationship with Boreworxx, had not received work from the company and were not part of the dispute.
A lien is a legal claim recorded against a property to secure payment of a debt or obligation. In the construction industry, contractors can file liens when they have provided labor or materials for a property but haven’t been paid as a way to seek payment through the property itself.
When the company filed these liens, it made it impossible for the homeowners to sell or refinance their property. For the homeowners, the liens arrived without warning since the homeowners had no professional relationships with Boreworxx.
The company allegedly sent letters to the homeowners, informing them about the liens and claiming that they were filed because of Circet USA’s refusal to pay for the work it did. The letters instructed the homeowners to contact Circet USA, the City of Albuquerque and the media to complain.
While NMDOJ reviewed the liens and determined them to be invalid, they will remain in the county’s official records until they are released or removed by court order. Clearing such a record often requires legal action, which can be costly and stressful. To resolve the matter, the state entered into an Assurance of Discontinuance (AOD) with the company. This type of agreement requires the business to stop the improper conduct, release the liens and comply with restrictions.
The company is now prohibited from filing claims against properties where it did not perform work and has agreed to follow state law governing construction liens. The DOJ emphasized that filing blanket claims against unrelated homeowners is an abusive tactic and will not be tolerated.
According to the AOD, the improper liens were released by Boreworxx, but a press release from the state’s attorney general’s office said that affected homeowners should take several steps to protect themselves, including checking county records to verify whether a lien release has been recorded, obtaining documentation of the release and notifying lenders and title companies about the release. A release may not resolve complications in a title history, though, and if homeowners encounter any issues, they may need to seek legal advice. The NMDOJ is also encouraging anyone who was affected by the case to reach out and file a complaint.
