Legal Question in Construction Law in California

Re: Release of lien

Yes and no. The limit in small claims court is $7500 for an individual and $5000 for a corporation or other business entity other than a sole proprietor. So, could he still sue you in small claims court? Yes, but he could only ask for the jurisdictional maximum, not the full $11,000.

Re: Release of lien

I wanted to add my 2 cents to Mr. Redenbacher's comments. Although the contractor has now forfeited his mechanics lien claim, as Gary said, he can still file an action for breach of contract. If he's unwilling to accept the maximum amount available in small claims court, he could conceivably file a limited civil case in Superior Court, seeking the full $11K.

However, if he's given you a lien release stating that his claim has been paid in full, that will be powerful evidence you can use to defend against his cause of action for breach of contract. You might want to check with an attorney in your area who works in the construction law field, and ask him or her to review the release and let you know their thoughts on the evidentiary value of the document.

A last thought - you didn't mention whether or not the release had been recorded. You'll want to make sure that it is, to insure that any cloud on title caused by the lien is removed.

Best of luck.