Legal Question in Construction Law in California

Can a mechanics lien be filed if promissory note is not due

I had some construction work. Since I had 3/4 of the funding. The contractor issued a promissory note for 1/4. This is not due for another 2 months. He filed a mechanics lien for an amount under the promissory note. This was in bad faith, as I still had 4 months till the note was due.

Is that a legal mechanics lien when no money is owed till due date?


Asked on 4/05/07, 6:19 am

2 Answers from Attorneys

JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: Can a mechanics lien be filed if promissory note is not due

Maybe. It really depends upon whether or not the work was done. A mechanics lien, in its simplest form, is a lien to secure the value of labor, materials, and/or services that have been provided to real property - it is not security for performance of an obligation.

Presumably, the contractor should have simply retained an interest in the property as security (such as a grant deed).

The next obvious question is when is the lien scheduled to expire? Liens expire by statute in 90 days from the date of recordation. At that point, they become 'stale' and unenforceable (absent certain rare conditions). Thus, you really need to determine what comes first - the 90 days or the due date on the note.

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Answered on 4/05/07, 8:13 am
EZRA FRUCHTER LAW OFFICES OF E. LEONARD FRUCHTER

Re: Can a mechanics lien be filed if promissory note is not due

Mr. Guerrini's answer is excellent, except it fails to ask whether the lien is timely to start with. The deadline for filing a lien is 90 days after the work is completed. Your question does not address this issue. Best of luck

E. Leonard Fruchter

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Answered on 4/06/07, 1:30 pm


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