Legal Question in Construction Law in California

Re: Mechanic Liens

I am assuming that the supplier never filed a law suit against your friend. If the mechanic's lien was merely recorded at the county recorder's office, then the supplier has NO RIGHT to force a sale/auction to sell the property. The supplier MUST have filed a lawsuit in Superior Court in order to obtain a judgment to foreclose on the mechanic's lien. The lawsuit MUST have been filed within 90 days of the date the mechanic's lien was recorded. (See Civil Code section 3144.) If not, then the supplier has lost its right to enforce the mechanic's lien as it is now "null and void". The 10-year time-frame applies to judgment liens after the case has gone through court. If there was no court action filed against your friend within 90 days of when the mechanic's lien was recorded, then your friend should send a letter, certified, to the supplier demanding that a mechainc's lien release be recorded because the time to file suit has expired. If the supplier refuses, there is a summary procedure that can be filed in Superior Court under Civil Code section 3154 for a court "Decree to Release the Property from Mechanic's Lien". In the decree proceeding, Civil Code section 3154 allows up to $1000.00 in attroney fees to be recovered as a judgment against the supplier who refused to release the void lien. Any attorney who does mechanics' lien work should be able to file for the court decree for the $1000.00 that can be recovered from the supplier. If a lawsuit was filed - then your friend needs to contact an attorney IMMEDIATELY in case the supplier has somehow obtained a default judgment. If that has occured, then the supplier may be able to force a sale of the property. IT IS CRITICAL TO DETERMINE WHETHER YOUR FRIEND HAS A JUDGMENT AGAINST THEM.

I hope I have answered your question.

Re: Mechanic Liens

Generally, once the Lien has been paid, the contractor files/records a Satisfaction of Mechanic's Lien and that should satisfy your situation. However, with the limited facts you provide, you may want to consult with an attorney to make sure there are no other issues. Thanks for your question and good luck.

Re: Mechanic Liens

Who are you? If you're a lawyer you know where to go. If your paralegal you should know where to go. Why would you be doing research??? Having taught real estate law, dealt substantially mechanic's lien law for many years, 30 plus, I point you to your nearest law library, pick up the read book on mechanic's lien law and study away. The up to

Re: Mechanic Liens

Let me add some thoughts to the excellent information provided by Ms. Scholefield and Mr. Atanous.

First, do we know that the supplier actually recorded a mechanics lien claim? You might contact a title company, asking for the cost to search specifically for any recorded claims of mechanics lien on your friend�s property. Alternatively, demand that the supplier provide a photocopy of its lien claim with the County Recorder's filing stamp clearly visible. That will give the date of recordation of the lien. The recording date is important, because a supplier like the one involved here has a deadline for recording its lien claim. If they blow the deadline the lien claim is invalid.

The deadline for recording a supplier�s lien claim depends on whether or not the owner or the general contractor (in lien parlance, the �original� contractor) recorded a Notice of Completion. If someone did record a valid Notice, the supplier�s lien would only be valid if recorded not later than 30 days after recordation of the Notice of Completion. If the project was not completed, but the owner or original contractor recorded a Notice of Cessation of Labor, the same 30-day deadline applies. If neither a Notice of Completion nor Notice of Cessation were recorded, the supplier would have a 90 days deadline to record its claim of lien. If recorded after such 90 days the claim of lien is invalid. Take a look at Civil Code Sec 3116.

Next, did the supplier serve a 20-Day Preliminary Notice on your friend? A supplier must serve the 20-Day prelim on the owner, within 20 days of first providing materials to the job. The 20-Day prelim is a prerequisite to perfecting a mechanic�s lien. If the supplier did not serve the Notice, the lien is invalid and cannot be foreclosed. Civil Code Secs 3097 and 3114 apply to the 20-Day Prelim issue.

Finally, if the contractor will pay the debt, make sure that he or she requires a signed and notarized Release of Mechanic�s Lien from the supplier as a condition of payment. Your friend should then record that document to discharge any cloud on title created by the original claim of lien.

Given your location, you�d certainly want local counsel familiar with construction litigation and the mechanic�s lien law to represent your friend, if necessary. In the meantime, I�d be happy to provide additional information until such time as your friend engages local counsel.

Best of luck, and now the inevitable caveat:

The foregoing information is provided as an accommodation only, and does not constitute specific legal advice or a biding legal opinion based on a comprehensive review of all relevant facts, nor can provision of such information be construed as creating an attorney-client relationship.

Re: Mechanic Liens

I didn't quite follow either Mr. Atanous' or Mr. Olden's thoughts. But I agree with Ms. Scholefield and Mr. Newton.

There are three things to keep distinct. The recording of a lien, the enforcement of a lien and the judgment that can follow the enforcement of a lien.

The recording of a lien is nothing more than allowing the property to act as security for an alleged debt. The foreclosing, or enforcement, of a lien is the actual lawsuit. The point of the lawsuit is to get a judgment. As my colleagues have pointed out, the lawsuit must be filed within a relatively short period after a lien is recorded, usually 90 days.

If a lawsuit to enforce the lien is successful, then you receive a judgment. A judgment gives the recipient the right to collect the debt owed. Through out this process, the lien served to secure the property as a source of payment in the event the lienholder got a judgment.

Your scenario is a bit confusing, but this isn't surprising. The lien laws are quite confusing and complex. It sounds, however, as though your friend merely has a lien recorded against his property. Whether that lien is properly recorded, stale or pending is probably a question that only a lawyer can answer. Although it is very easy to record a lien, it is also very easy to do it wrong. It's too complicated to go into all the reasons why the recording of a lien can be done wrong. Have your friend get a construction law attorney and him or her assess the situation. Best of luck.