Legal Question in Credit and Debt Law in California

Re: re-possession

Your only remedy against C would have been to serve a timely mechanic's lien. By the way, it is not a 20-day time period. In order to have the lien rights, persons who don't have a contract withi the owner must serve a statutory 20-day preliminary notice within 20 days of first started work or supplying materials to the project.

You can file a collection lawsuit against B for the unpaid balance. You still have leverage becuase the Contractors State License Board will suspend the contractors license if you get a judgment and it remains unpaid.

Re: re-possession

Unless you've filed a lien against the property with the UCC, you don't have any right to repossession against the current owner. It looks like your only option is to file a normal lawsuit against the contractor.

Re: re-possession

No. C owns the equipment because he is a "bona fide purchaser" for value without notice of A's claim against B. A should have specified in his contract with B that he retains a security interest in the equipment, and should have then filed a UCC-1 with the Calif. Secretary of State to perfect his security interest in the equipment. A can now only sue B for whatever he can get from B. This is my best guess. You should consult an attorney in person and bring the relevant documents (which I have not reviewed). Remember there are legal time limits for filing lawsuits.