Legal Question in Construction Law in California

Re: Lien: How to verify if valid and deal with it

The 90-day lien expiration rule is set forth in Civil Code section 3144. Contained therein is a tricky exception to the rule: The creditor can extend credit to the owner, and so long as the notice of such credit is recorded within the 90 days, the lien can remain in effect for up to a year. Further, it is unnecessary for the owner to request or approve the credit.

The 90-day period starts with the recording of the claim of lien and the one year starts with the completion of the work of improvement--two different times.

A 20-day notice must be given by potential lien claimants who aren't in direct contract with the owner, must be given not later than 20 days after the potential claimant has first done work or furnished materials, and must be served on the owner, all as provided in Civil Code sections 3097 and 3097.1.

Civil Code sections 3114, 3115 and 3116 are also important to the time lines. 3114 essentially repeats the 20-day notice requirement. 3115 deals with lien-recording time for the "original contractor," while 3116 deals with timing for others, such as subs and suppliers. Subs must record liens after they have ceased work and within 90 days of completion of the work of improvement or, if a notice of completion is recorded, within 30 days of the notice. This is an added time cushion to consider, but remember that most subs and suppliers would be subject to the 20-day preliminary notice requirement.

I do not know of any requirement that one who records a claim of lien must serve it or notify the owner

There are, of course, laws requiring a general to pay the subs, and failure to do so is a ground for a claim against his license bond. On larger projects, owners usually require contractors to post completion or performance bonds.

All manner of coalitions can be formed to bring pressure on a delinquent party to a construction contracting setup. It would not be unusual for an owner to align with an unpaid sub.

Re: Lien: How to verify if valid and deal with it

The law is very strict as it is statutory applicable to mechanic's liens. Actually than 90 days starts when the South Olas supplied work or materials to the project. That would not be for instance, three weeks after he finished and he comes back to do some screwing it of finishing work. Such Avent told me exactly what sobbed it was that didn't help in asking the question. Since it is only $5,000 that would be covered in a small claims action more likely than not. If he got an attorney to pursue this in a limited superior court action then I would, upon having the complaint summits served against you do two things. Seek an attorney who is an expert in real estate law/mechanic's liens. I would immediately also tender to the contractor the defense of this mechanic's lien and explained to him that he had 10 days to have an attorney deal with this and keep you apprised of what was going on or else you would have your own attorney handle the matter and you would charge him for all damages and fees incurred. Be careful of the timing and I would tell you to get an attorney involved before hand so that everything can go smoothly if and when the sub actually sues you. I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.