Legal Question in Business Law in California

Re: lien

Why doesn't someone who has learned enough about the contracting business to get a general contractor's license also understand the basic rule that a mechanic's lien has a 90-day life span? This puzzles me; maybe he needs a refresher course in the business aspects of being a contractor.

There is another deadline coming up - the four-year statute of limitations on a suit to enforce a written contract. Your husband can still sue for breach of contract, assuming the unpaid payment was delinquent after today's date in 2005, but he will be an unsecured creditor rather than a lienholder and his chances of collecting a judgment are much lower.

Re: lien

Once a mechanic's lien is recorded, you have to file a lawsuit to foreclose on the lien within 90 days. If you fail to file the lawsuit, the lien is void by operation of law, although the lien may still show up on title. You can't just record the lien and let it sit. Let me know if you have further questions.

Re: lien

Once you file a mechanic's lien, you only have 90 days to file a lawsuit to enforce the lien. If you do not file a lawsuit in the required time, the lien becomes null and void.

Re: lien

It sounds like the Title Company has a generous policy when it comes to mechanic's liens. Once the lien is filed, you only have 90 days to commence a foreclosure suit otherwise the lien is extinguished. Apparently, the title company was willing to negotiate liens as far back as 12 months which is rather lenient.

All is not lost though. You may still be able to file suit against the original party which entered into the contract on a breach of contract theory or unjust enrichment.

Good Luck.

www.SoCalConstructionLaw.com

George M.

714.904.1669