Legal Question in Construction Law in California

Re: Mechanics Lien

Arbitration or mediation are not required first unless your contract calls for them. You can file the lien (or first give notice to the owner if that's required) within the time prescribed under California law.

Re: Mechanics Lien

The right to a mechanic's lien is a California Constitutional right. Whole books have been written on mechanic's liens so it's impossible to tell you the rules of liens in this space. You don't have to prove that your work is adequate before you record and try to enforce a lien. I will say, however, that in my experience, recording and enforcing a lien is an open invitation for getting a cross complaint from a homeowner for defective construction. This doesn't mean that they'll win, just that homeowners routinely strike back, even if they never uttered a word of disappointment to you.

A provision in a contract stating that you have to arbitrate, mediate or go to small claims court before recording a lien may not be valid. If you think about it, requiring one to arbitrate or go to small claims court before recording a lien completely defeats the purpose of the lien which is to provide a source of security for any debt that might ultimately be proven in arbitration or court. It would be like putting the cart before the horse. There are also very strict deadlines and requirements for recording and enforcing a lien, so it makes little sense to say that one must file a lien after arbitration. By this time, the statutory timelines will almost certainly be long past due.

There are cases that say that recording a mechanic's lien is "absolutely privileged" although there are one or two cases suggesting that it might not be. What I'm trying to point out is that this is a remarkably complex subject. It's my opinion that as long as a mechanic's lien has even a hint of validity, you can't get into trouble for recording it. You might, however, get into trouble for trying to foreclose the lien if it has no validity whatsoever.