Legal Question in Construction Law in California

Re: Contractor's mechanics llien on house.

There aren't enough facts to give you a definitive answer. The key question is whether the lien holder actually did any work. If he did the work claimed, then he'll probably get paid, at some point, if he chooses to pursue it.

All litigation, save small claims court, is ridiculously expensive. Construction law claims are made even more so because experts are nearly always necessary to prove whether the work was done properly, was it for a reasonable amount, etc.

Knowing contractors like I do, however, the majority don't follow through on their liens. This is because the second step, foreclosure of a lien, pretty much requires the hiring of an attorney. And we're flat out expensive.

If you have a good case, here's my standard mantra to both contractors and owners (it can change drastically depending on the circumstances): If the amount in controversy is $7500 or less, go to small claims court (you'll have to eat any amount above $5000). If the amount in controversy is between $7500 and $20,000, you're in no-mans-land. It will cost as much to litigate the thing as the amount you'll recover (or defend against). You have to make the decision whether to proceed based on the knowledge that the attorney's fees could be as much as the judgment. If the amount in controversy is over $20,000, then it makes decent sense to litigate because the judgment will exceed the attorney and expert fees.

Re: Contractor's mechanics llien on house.

The advice you've been given is sound. The amount in dispute is very significant to making your decision. Also important is the quality of proof you have; you can be dead right and lose because your evidence was weak. Settlement through negotiation is almost always preferable to litigation.