By Milene C. Apanian, Esq. Construction Disputes, Stop Notice & Mechanic’s Lien Lawsuits
After recording a Mechanic’s Lien, follow the suggestions below to make sure your Mechanic’s Lien is Collectible!
1. Act quickly. Do NOT procrastinate. Deadlines are critical to your ability to collect! A Mechanic’s Lien binds a property for 90 days only and it expires if a lawsuit is not filed. The lawsuit foreclosing upon the Mechanic’s Lien must be filed no later than 90 days after recordation of the Mechanic’s Lien.
2. Confirm the information on the Mechanic’s Lien is accurate. A Mechanic’s Lien lawsuit will be defeated if you willfully provide a false Mechanic’s Lien or include labor, services or materials not furnished for the property. A Mechanic’s Lien should not include attorneys fees, lost profit, consequential or delay damages.
3. Determine if an additional/successive Mechanic’s Lien is necessary. After recording a Mechanic’s Lien, you may record additional liens for the following reasons, as long as the additional recordations are within the statutory deadlines:
a. To correct an error in the original Mechanic’s Lien
b. To renew an expired Mechanic’s Lien (only if the owner has not already expunged previously recorded but expired Mechanic’s Lien)
c. To rectify a premature Mechanic’s Lien
d. To assert a claim on a separate contract work
4. Gather key information.
a. Name & address of project Owner/Contractor/Lender
b. Project Name/Address/ Assessor’s Parcel Number
c. Project status and/or completion date; If public project, the date project accepted
d. Payment bond information, if applicable
5. Gather important documents.
a. Contract Documents
b. Preliminary 20 Day notice, including any amended notices
c. Recorded Mechanic’s Lien, including any amended and/or successive liens
d. Mechanic’s Lien release bond, if applicable
e. Pay Requests
f. Unpaid Invoices/delivery tickets
g. Letters demanding payment
h. Conditional/Unconditional Release and Waivers
i. Notice of Non-Responsibility
j. Notice of Completion/Notice of Cessation/Acceptance by public entity
6. If you are paid and the check clears the bank, you must provide a Release of Mechanic’s Lien. If you receive partial payment, you must provide a Partial Release of Mechanic’s Lien.
7. Consult with an attorney promptly. Mechanic’s Lien claims are waived if not timely pursued! An attorney will require about a week to prepare the lawsuit and file it with the court. Do not wait until the last day.
Milene C. Apanian can be reached at (818)760-2000 or at ma@argrlaw.net
ATTORNEY ADVERTISMENT: This article is the courtesy of attorney Milene C. Apanian and the Law Offices of Abdulaziz Grossbart & Rudman & in no way creates an attorney-client relationship. The information contained herein is provided as a service to friends & clients and is not meant to be a comprehensive study of California’s Mechanic’s Lien law and/or remedies. The Mechanic’s lien laws & statutes change constantly & each construction project is unique with its own set of facts and circumstances. If you have questions specific to your project and your Mechanic’s Lien, consult an attorney. © 2009 Milene C. Apanian All Rights Reserved.
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