RM Construction, Inc. v. 413 Cabins, LLC et al

On March 10, 2026, RM Construction, Inc. filed suit in U.S. federal court against 413 Cabins, LLC and its managing member, Mark Williams, over a luxury cabin resort project in the Great Smoky Mountains. The general contractor claimed it completed thirteen high-end cabins but was not paid the final $2.1 million, asserting breach of contract, quantum meruit, and foreclosure of a mechanic's lien. 413 Cabins counterclaimed, alleging extensive water intrusion defects, structural nonconformities, and costly delays that damaged its rental business. Before litigation, the developer refused payment, prompting RM Construction to record a lien on the property. The complaint seeks damages, interest, and a judicial sale to satisfy the debt. The case highlights escalating disputes common in post-pandemic construction, where material price volatility and labor shortages intensified disagreements over change orders and work quality standards.

As of June 2026, the court has denied the defendants’ motion to dismiss, allowing the breach of contract and lien foreclosure claims to proceed. A preliminary injunction preserved the lien, and the parties have been ordered to engage in court-supervised mediation ahead of a jury trial scheduled for early 2027.

Whether 413 Cabins, LLC was legally justified in withholding payment due to alleged construction defects and delays, or whether the defects were de minimis and the developer wrongfully refused to pay, thereby triggering a valid mechanic's lien and breach of contract.

The case has drawn attention from the construction and short-term rental industries, underscoring the critical need for precise change order documentation and prompt payment mechanisms. It may influence how small cabin developers structure construction financing and how contractors negotiate retainage clauses to mitigate payment risks in high-cost resort projects.