Legal Question in Construction Law in California

Re: stop notice statute of 1999

The stop notice statutes have been around a lot longer than 1999. There may have been some changes made in 1999, but what you'd be going under is the statute as it stands today.

The builder can try posting a stop notice against the loan, but unless the guy posts a bond it's unlikely that the lender will honor it. I don't think I've ever seen a lender in a private construction project honor a stop notice unless there was also a bond, although, admittedly, the lender can if it wishes.

The recording of a mechanics lien or the filing of a stop notice is generally considered an act that is done in furtherance of litigation and, thus, is privileged. So, no, it isn't correct that "a stop notice can only be done legally if there is NO dispute as to the contractor's performance."

When people get desperate they can interpret a contract in pretty weird ways. So, it's not unusual that the contract has suddenly become a cost plus rather than fixed. Now you have the fun and joy of going to litigation to make this determination.

Re: stop notice statute of 1999

Would need to see all your contractual agreements, etc. Call to discuss.

Re: stop notice statute of 1999

I have been practicing real estate law for over 30 years and have been dealing with mechanic's lien law including stock notices during all that time. The problem you have initially is that you are not wold in understanding the mechanic's lien statutes applicable to your problem. You must seek an attorney who is experienced in real estate law/litigation and has dealt with mechanic's lien statutes to aid you. One of the worst things that you can do is interpret statutes with which you are unfamiliar. In all probability you had no legal advice in going into the contract itself. The attorney has to see all the documents including the original contract at any amendment to it to interpret that contract to see whether it was a fixed-price or time and materials. No matter what it is you have a major problem. There is nothing in the law that says a stop notice can only be filed when there is no problem. In fact more likely than not the stock notices are filed when there are problems and you should be looking for a mechanic's lien. This basically is the precursor to litigation. What you need to do is get an attorney to help you settle this matter for, help you find a new contractor and to the old one.I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.