Legal Question in Construction Law in California

Fraudulent Lien Amount

A lien has been filed against my property. The contractor has filed suit to recover. The amount of the lien includes thousands of dollars for items not done or supplied . This was figured out through discovery and document requests.

Is there any recourse one can take in the trial to get the lien thrown out based on fraud? If not can one file a suit against the contractor for breach of contract and fraud etc?

Does one have four years to file a suit based on a written contract?

Thank You


Asked on 6/13/03, 7:44 pm

2 Answers from Attorneys

Gary Redenbacher Redenbacher & Brown, LLP

Re: Fraudulent Lien Amount

The short answer to whether you can get the lien thrown out as fraudulent is, "No." The recording of a mechanics lien is close to absolutely privileged. Foreclosing on a fraudulent lien, however, could rise to malicious prosecution. It sounds, however, like the contractor did supply some labor and materials, so it may be tough to show fraud.

The courts have been pretty tolerant of liens that either overstate or understate the amount owed as long as the figure was derived with some reasoning. They figure that the exact amount will be worked out through discovery and at trial. This sounds to be what's happening.

I didn't follow all that Mr. Olden said, but I do agree that this can be a highly technical field. There are lots of defenses available to a home owner and it's unlikely that you'd know them without help from an attorney who specializes in construction law. This, by the way, is an area where I diverge from Mr. Olden. It is true that construction law is considered a subset of real estate law, but I find that many real estate lawyers know little or nothing about the construction field. I suggest making sure that any lawyer you contact have definite experience in the construction arena.

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Answered on 6/14/03, 1:03 pm
Michael Olden Law Offices of Michael A. Olden

Re: Fraudulent Lien Amount

It seems from the nature of your question that you're already involved in the lawsuit. Don't you have an attorney. If you don't you need one IMMEDIATELY. You cannot under any circumstances represent yourself in this situation. Your last sentence tells me that you have a naivete which preclude you from being successful in this lawsuit. A practitioner who is specialized in real estate litigation is the kind of attorney you need. I would imagine that the contractor has both soon a breach of contract and mechanics lien. This is a very technical area and is purely statutory. I have tried hundreds of these cases over 30 years. The defenses are numerous but you must have certain facts to be able to properly not only a lead the defenses by show them in the trial court. Additionally, you may have other rights post-trial if you are successful. I mean totally incompletely successful as to get a judgment in your favor without any judgment in favor of the contractor. If you wish me to talk to you personally I will be happy to do so. If you already have attorney just ask your attorney.

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Answered on 6/13/03, 8:43 pm


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