Legal Question in Business Law in California

Re: Laborer lien rights

With regrets, I have to disagree with Mr. Zacher. The Mechanics lien law makes clear that laborers, including employees (Civil Code Sec 3089) have lien rights on a work of improvement (Civil Code Sec 3110). See also Borello v. Eichler Homes, Inc., 221 Cal. App. 2d 487 � Court found that lien claimants were employees as opposed to unlicensed contractors; accordingly they could claim a mechanics lien. Finally, the code section that describes 20-Day Prelims (Civil Code Sec 3097) says that �... one performing actual labor for wages ...", is one of the 3 classes of claimants that does not need to serve the 20-Day Prelim.

Given what the Code says, I believe the general contractor is well within his rights to ask that your employees sign the lien releases. Remember � they are also often called labor and material releases.

In terms of the supplier who failed to serve a 20-Day Prelim, I�d go ahead and get the release, simply to be on the safe side. There have been occasions where a lien claimant failed to serve the 20-Day Prelim, but was still allowed to enforce the lien claim. It doesn�t happen often, but it doesn�t hurt to cover all the bases. The general is probably under some pressure from the owner for these releases. Although getting the release may be inconvenient, it certainly can�t hurt jobsite relations.

Now the inevitable caveat:

The foregoing information is provided as an accommodation only, and does not constitute specific legal advice or a biding legal opinion based on a comprehensive review of all relevant facts, nor can provision of such information be construed as creating an attorney-client relationship.

Re: Laborer lien rights

A laborer may file a mechanics lien on a property. This does apply to you and if you wish to discuss this matter further, please call. Don Holben 800-685-6950

Re: Laborer lien rights

No. Your employees are not subs. They don't have to sign. Good luck and thanks for inquiring.