Legal Question in Construction Law in California

Re: Getting paid on a project as general conrtactor.

While this may be unpleasant to hear, an attorney must look at the bank's basis for stopping the 92,000, and then write them a letter and to question their justification. They may be in the right or it may be breach or interference with a contract. Same with the short sale - are they selling the house as is, or with work to be completed?... and if so, will the new owner undertake the contract to pay you? A lis pendence is filed usually when you file a lawsuit - you have to be very careful with improperly filed is pendence because the other side can expunge it and get attorney fees. You also have to make sure your lien is perfect. While I understand you may not want to sue your friend, he is a businessman and likely has insurance and other protections, and you can later make decisions after judgment about which of his assets to go after. You shouldnt be the one to eat this quarter million on that basis. I can look at your contracts and facts and determine your next course of action and options if you want to hire me to spend a little time. Then, we can decide whether to sue or what other course of action to pursue.

Best,

Daniel Bakondi, Esq.

IMPORTANT:

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Re: Getting paid on a project as general conrtactor.

If you have filed a lien against the property, then you only have 90 days from the date the lien is filed to commence a foreclosure suit. Once you commence this suit, you would file a lis pendens to put every potential buyer on notice that you have a cloud on title in your favor. The big issue is going to be the priority between the mechanic's lien and the deed of trust.

Unfortunately, if the developer abandons the project and there is no equity and the deed of trust holder forecloses, then the mechanics liens are essentially wiped out. However, mechanics liens are not totally worthless in this situation because they can still serve as a cloud on title which would dissuade potential buyers from buying the porperty. Additionally, even if your lien rights against the property become worthless, you can always include a claim against the lender for unjust enrichment in the same suit which you bring to initiate foreclosure entitling you to money damages.

Regardless, you should seriously consider filing suit ASAP. Doing so may bring the lender to the table and offer some kind of settlement.

If you would like to pursue this, then please contact our office.

Best of Luck!

www.SoCalConstructionLaw.com

George M.

714.904.1669

Re: Getting paid on a project as general conrtactor.

Your options are to either pursue all your rights and remedies timely and effectively, or walk away from the money owed you. The choice is yours. Hire an experienced attorney to try to recover your money. If you don't do all these things right, you lose.