Legal Question in Construction Law in California
Mechanic's Lein
If a subcontractor performed work for us and did not file a Preliminary Notice can he file a Mechan's Lien against our customer because we have not paid the sub-contractor for his work in a timely manor?
1 Answer from Attorneys
Re: Mechanic's Lein
When you say "us", I'm going to presume that means
you are a general contractor, and that the you had
the direct contract with the owner. I'll further
presume that the sub in question had a contract only
with you and no direct contractual relation with
the owner.
Nothing will keep the sub from recording a claim of
mechanics lien if it wants to do so. However, under
the facts as presumed above, the sub will not be
able to enforce the lien claim if it has failed to
serve the 20-Day Prelim. (Cal. Civil Code secs 3097, 3114).
The lien will remain of record until released, but
the sub will lose any lawsuit to foreclose the lien, because
service of the 20-Day Prelim is an absolute prerequisite to
enforcing the lien claim.
You need to be aware, thought, that the owner can
look to you to defend the lien claim at your own
expense, and may withhold from you the amount claimed
by the sub.
I'd be in close contact with the owner as to
the reasons for non-payment, and make sure
you're on firm ground in denying payment to the
sub. Best of luck in resolving this, and contact
me if you have further questions.
Now the inevitable caveat: The information provided
above is given as an accomodation only and can not
be considered as specific legal advice based on a
review of applicable facts and relevant documents.
No attorney-client relationship is created, either
impliedly or expressly.
Best Regards,
Tom Newton