Legal Question in Business Law in California

What does your contract with them say? Usually repossessions of personal property are allowed if there is no breach of the peace. If the "neon border" is attached to a building, it becomes real estate, and you would file a mechanics lien or a lawsuit, assuming you are a licensed contractor. If you're not a licensed contractor, and the work requires a license, they might not have to pay you anything.

Mr. Stone is 100% correct. If you did work that requires a contractor's license, and performed a work of improvement, you have the right to record a mechanic's lien, and then file a lawsuit for breach of contract and to foreclose the mechanic's lien. The time frame to do this is 90 days from the recording of the mechanic's lien, otherwise the mechanic's lien becomes invalid. If you were required to have a contractor's license and did work without it, you cannot recover for the work, but can recover for materials supplied.

Most attorneys will say you can't "repo" the neon border installed. Of course an attorney would need to consider the terms of your contract. If you are a licensed contractor you have legal remedies including filing a contractors lien, a lawsuit, etc. Consult with an attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

You also have to be aware of strict time limits on mechanics liens. They begin running from the date of completion of the work of improvement. How long they run depends on whether or not a notice of completion was given by the owner, but even if not, it's a short time after completion that the right expires.

I should also add that Mr. Roach is dead wrong that you can recover for materials supplied but not for labor if a contractors license was required. If ALL you did was supply materials you can recover, because there would be no license required, but if you did work requiring a license you cannot collect for anything. In fact if you were paid anything you have to disgorge the payment. Bus. & Prof. Code section 7031.

The first thing a lawyer would need to ask you is whether this contract was primarily for the sale of goods (e.g., specially-made neon tubing) or for services (e.g., installation). The answers may determine (a) whether this is a sale of goods contract covered by the Uniform Commercial Code, or a services contract to which the UCC would not apply, and perhaps (b) whether you were subject to the contractor licensing laws or not.

The UCC has detailed procedures for figuring out, from the contract terms and other sources, whether you retained a lien that can be enforced by self-help including repossession and/or re-sale of the merchandise. In any event, repossession of property subject to a vendor's lien must be done so as not to create a breach of the peace.

A lawyer would also have to inquire as to whether the neon tubing has become part of the realty or not. So, this is not a simple question that can be answered "for sure" without careful consideration of all the facts.