Legal Question in Construction Law in California
Material Suppliers' Supplier's Lien Rights
We are a supplier of commercial doors, frames and hardware. If our supplier requests the job name and we provided it, do they have the right to prelien the job and does it give them the right to a stop notice?
2 Answers from Attorneys
Re: Material Suppliers' Supplier's Lien Rights
WHETHER OR NOT THE ORIGINAL SUPPLIER HAS LIEN RIGHTS/STOP NOTICE RIGHTS IS A MATTER TO BE DETERMINED FROM THE ACTUAL SITUATION AND IS NOT A SIMPLE QUESTION. ACCORDINGLY, I WOULD RECOMMEND THAT YOU FURNISH THE INFORMATION, AND, IF AND WHEN NECESSARY, LET THE COURT MAKE THE FIAL DECISION. I REALIZE THAT THIS MAY CAUSE YOU AN ACCOUNTING/PAYMENT PROBLEM SINCE YOU WOULD NEED TO GET LIEN RELEASES FROM YOUR SUPPLIER BUT, ON THE OTHER HAND, IT GIVES YOU MORE LEVERAGE TO GET PAID IN A TIMELY MANNER.
E. LEONARD FRUCHTER
Re: Material Suppliers' Supplier's Lien Rights
WHETHER OR NOT THE ORIGINAL SUPPLIER HAS LIEN RIGHTS/STOP NOTICE RIGHTS IS A MATTER TO BE DETERMINED FROM THE ACTUAL SITUATION AND IS NOT A SIMPLE QUESTION. ACCORDINGLY, I WOULD RECOMMEND THAT YOU FURNISH THE INFORMATION, AND, IF AND WHEN NECESSARY, LET THE COURT MAKE THE FIAL DECISION. I REALIZE THAT THIS MAY CAUSE YOU AN ACCOUNTING/PAYMENT PROBLEM SINCE YOU WOULD NEED TO GET LIEN RELEASES FROM YOUR SUPPLIER BUT, ON THE OTHER HAND, IT GIVES YOU MORE LEVERAGE TO GET PAID IN A TIMELY MANNER.
E. LEONARD FRUCHTER
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