GPI 302 – Train your employees what to do and what not to do when your firm receives a legal notice of a lien.

Your employees are not lawyers nor do they know how to legally respond to notices of liens issued by courts. Teach them what to do; step by step so they do not further cause problems. Have your company lawyer write a simple procedure, and the steps to take when a notice is formally received at your firm. Have him to answer the following questions.

• Should we place any more orders with a vendor that placed a lien on our firm? (It sounds odd to ask but tell them clearly when to stop buying.)
• Should we avoid speaking with the vendor about the lien?
• If we get a lien filed by one of the vendor’s suppliers, should we not discuss the notice with either one of them?
• Should we stop payment on any checks that were issued and mailed to the vendor?
• Should we do nothing until given further notice by the company lawyer?