Legal Question in Construction Law in California
Who must receive a 20 day prelim notice
We supplied materials for a project which we are not being paid for, we have met all of the demands of this project, now we want to be paid. we are now seeking legal action.
We sent a 20 day preliminary notice to the construction lender, owner, original contractor, and sub contractor.
We are being told we should have sent a notice to the tenant as well. We never heard of this. Is this a new requirement for a California preliminary 20-day notice?
Thank you.
1 Answer from Attorneys
Re: Who must receive a 20 day prelim notice
I do not think the lien laws have changed. It is still the "reputed owner" that must be served with the preliminary notice. The actual owner, as well anyone with an ownership interest in the property (i.e. a lease) should be served, but it may not be kill the lien if only the "reputed owner" is served. An "owner" for the purposes lien laws is anyone having an interest in the property, including a tenant with a lease. Usually it is the tenant who ordered the work and then gets listed as the "reputed owner." If this happens then at the very least the claim would be valid as against the tenant's leasehold interest, (however, there is often a situation to support an argument that a lien was created on the entire property). You have a situation where the actual owner has been noticed, but not the tenant. It would seem then, using the same logic, at the very least you have a lien against the owner's interest, but not the leasehold interest of the tenant. Whether the tenant had actual knowledge of the work may also be a factor. I hope this lends some insight. Lien laws are very complicated with strict deadlines for filing notices and lawsuits, and are very fact dependent. If any significant amount of money is at risk, you really must sit down with an attorney as soon as possible to figure out your rights. Good Luck.
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