Legal Question in Construction Law in California

Re: mechanic lein

If the lien claimant wants to go to arbitration but still preserve his action on the lien, he must file suit to foreclose the lien within 90 days of recording the lien. At the same time as he files his action to foreclose, he must file an application to stay the suit pending the arbitration award. See California Code of Civil Procedure section 1281.5 for more information. The mechanic's lien is an important remedy since a mere money judgment may be unenforceable in whole or in part because of a homestead exemption, whereas this does not apply to the lien. Further, the priority of a judgment dates from the recording of the abstract whereas the priority of the lien dates from the start of construction.

Best of Luck

E. Leonard Fruchter

Re: mechanic lein

Probably, but not because of the mechanic's lien.

When the contractor chose arbitration, he made an election to use that forum rather than sue in court to enforce the mechanic's lien. The mechanic's lien would probably have expired during the arbitration process, anyway. So the mechanic's lien becomes a dead letter.

However, the arbitration award can be turned into a judgment by presenting it to a court. Once the contractor has a court judgment on the arbitrator's award, he can file an abstract of judgment in any county where the judgment debtor has property. If the judgment isn't paid, the contractor/judment creditor can take steps to enforce it against the debtor, including foreclosure.

The difference is that the foreclosure action relates to the judgment on the arbitration award, not on the mechanic's lien, and there will be differences in the amount, extent of property it can be enforced against, seniority, priority, etc.