Legal Question in Construction Law in California
Re law of mechanic's liens in California, is there civil liability for wrongful filing of such a lien?
And how do you establish "wronful"?
2 Answers from Attorneys
There can be liability. You would have to establish what is needed for any tort--intentional act or act that a reasonable person would not commit or would not do in that fashion as risk of harm to another likely.
Mr. Shers is right and wrong. He is right that there CAN be liability. He is wrong as to the elements. It is not a negligence standard, which is what he describes. The tort that would be involved is slander of title, and if the party who recorded the lien is one of the types of parties (contractors, subcontractors, laborers, material suppliers, etc.) who is entitled to a lien, then recording the lien is completely privileged. That means you cannot sue for the wrongful lien no matter what. I have not researched in detail what happens if someone who has absolutely no right to record a mechanics lien under any circumstances records one, but I believe they would not be protected by the privilege. That would also establish your "wrongful" element. The rest of the elements of slander of title are the same as for any slander, a false statement, in this case that the recording party has a colorable claim of lien, that causes damages, such as a failed sale of the property at a favorable price and resale at a lower price, or loss of a favorable refinance or other loan.
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