Legal Question in Real Estate Law in California
Amount on Mechanics Lien
I am a subcontractor who supplied materials and labor on a commercial building in three phases. Now the general is not paying and claims it is because the owner has not paid. I think it is a stall tactic. The time within which to file a lien on the first two phases has expired, but I can still file on the third phase. My question is, can I file a lien for the entire amount of all three phases, since it was one big project? I am afraid that if it is determined at the foreclosure hearing that I should not have included the first two phases, they will find the entire lien defective and I'll end up with nothing.
4 Answers from Attorneys
Re: Amount on Mechanics Lien
The statutes that govern the time to record a lien do not reference phases of a project, but there may be some cases which do. My inclination is that you can record a lien for your full contract amount. Did you file the 20-day notice? Call me if you'd like to discuss this matter.
-Ben
Re: Amount on Mechanics Lien
Mr. Berger is correct. An attorney will need to do some research to make sure you can file for all phases in one. We can also handle this.
Re: Amount on Mechanics Lien
"Phases" is too indefinite a term to have a legal meaning in itself, or to allow an attorney to research whether the claims must be separated. Has a Notice of Completion or Notice of Cessation been recorded by the owner with respect to the earlier "phases?" If you timely provided a 20-day preliminary notice, you would be entitled to have such Notices sent to you, and failure of the owner to do so would extend your time for filing your lien. See Civil Code section 3259.5. I would also suggest that you might want to give yourself a quick refresher course on the nuts and bolts of mechanic's liens. In any case, my hunch is that whether separate Notices of Completion (or Notices of Cessation) were recorded will determine whether what you call "phases" has an impact on you, or not.
Re: Amount on Mechanics Lien
The answer depends upon a lot of factors, and I would need to know a lot more information. There are some strict statutory time periods at play here.
If you are in direct contract with the owner, then you are in the best position. However, it sounds as if you are not in direct contract with the owner and instead have a contract with the general.
If so, you cannot lien the project without first having served (timely and properly) a 20 day Preliminary Notice. Did you do this? If not, you have some problems. You can still likely recover against the general, but you will likely have problems against the owner.
If you timely and properly serve a 20 Day, then the answer on whether you can lien the project depends upon several factors, including but not limited to when you did the work, whether notices of non responsibility were served and/or posted, whether a notice of cessation of work was recorded, and when you last did work, among other factors.
My firm's website explains in more detail issues surrounding mechanics liens. If you need help, call or email. We have several attorneys who routinely file foreclosures of liens.