Legal Question in Construction Law in California
Mechanic's lien
A mechanic's lien was placed on our house by the company that supplied the cement for our pool six months after we had paid our pool contractor in full. We have responded and appeared in court. The judge told us to get a lawyer because ''we have sharks in the water coming right for us''. The lawyer wants 10k the lien is for 7k and he said getting the pool company to pay if we win is a whole other battle. Any suggestions on what we do now? The pool co.'s bond insurance co. filed a cross complaint because there were 24 claims against their 12.5k bond. I don't understand how they can make us pay for what we have already paid for. Please help me understand.
Thank you.
3 Answers from Attorneys
Re: Mechanic's lien
The reason you may end up paying twice, (and please don't take this as a personal attack as this is more common than not), is that you probably did not understand at the time that you entered into a contract with the pool contractor what you should have demanded from them as a part of the contract, or alternatively, the contractor breached the agreement but you were not aware of the breach. Here is what should have happened. Whenever you contract for work such as this, you need to insist upon releases from materialsmen and subcontractors BEFORE you pay the pool contractor anything. You should also have a certain amount of the contract that you hold back for anywhere from several weeks to several months - a retention - more for unfinished work, but could also be used to pay something like this. The waiver is extemely important because it is your guarantee that none of these subs can come back after you for nonpayment from the pool contractor. Failing to get these waivers and releases means you are just as liable for the nonpayment because the improvements were made to your home, and you have the benefit of them. The failure to get releases is between you and the pool contractor, not the suppliers and sub-contractors. As this is in litigation, I strongly encourage you to retain counsel, and work something out with the supplier, then go after the contractor and his bond (which appears to be exhausted, but it doesn't mean you shouldn't still make a claim). File a complaint with the Contractor's State License Board as well. In the downturn since the mortgage crisis, we've seen a ton of these cases where contractors skim money from jobs just to survive because their business is down so sharply, leaving the homeowner high and dry. Its not good news for you, as the likelyhood of collecting from a contractor who is skimming from jobs, and has that many claims against his bond, is probably headed into bankruptcy - certainly out of business. Get an attorney first - you don't necessarily have to fight the concrete supplier, as I'm not clear from your post if you even have a defense to his claim - just negotiate something you can live with, then go after the pool contractor.
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Re: Mechanic's lien
You should get a lawyer. The mechanic's lien laws allow subcontractors and material suppliers to bring an action against owners for unpaid contracts. Hopefully there is enough in bond money to cover the outstanding liens. Also, was the contractor licensed? You could probably cross-complain against him and if he is not licensed you can get your money back. (Of course, that assumes he has assets that are collectible.)
Tough situation. I am sorry, and good luck.
Re: Mechanic's lien
Because you did not obtain a release at the time that you paid the contractor. Your contractor appears to have taken your money and not paid the suppliers. If the lien itself is proper (prelim notice served) and timely, and the lawsuit was filed timely, then you have no choice but to pay.
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