Legal Question in Real Estate Law in California

We have a contract dispute with our contractor on the final amount and have recently received a lawsuit. The contractor placed a lien against the house in November 2015.

The reason why we are disputing the charges with our contractor is for work that was not completed by them and also materials that we paid out of pocket. In our contract, it states that all parties would seek mediation in the event there is a dispute. We had asked them for mediation several times in an email but they said it was costly. We have been emailing back and forth and had agreed on the final amount and ready to sign paperwork. Surprisingly, we received a civil lawsuit from 2 weeks ago even though we have agreed to meet this week to sign the final document.

We have receipts showing the materials we paid for out of our own pocket and also documents showing the contradicting scope of work completed and change orders showing that they did not do some of the work that they are trying to get paid for.

We would like to know how we can ensure that the lawsuit will be dismissed after we pay them. Can they still sue us even if they give us a document that shows we owe 0 balance?


Asked on 4/08/16, 1:43 pm

2 Answers from Attorneys
Gerald Dorfman Dorfman Law Office

You need a written settlement agreement which contains a release, and promises to remove the lien and dismiss the lawsuit "with prejudice".

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Answered on 4/08/16, 2:00 pm
Gerald Dorfman Dorfman Law Office

Also, it is very important you pay attention to the time limit for responding to the lawsuit. If you have been served with a lawsuit you must file formal responsive papers on time or you can lose.

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Answered on 4/08/16, 2:03 pm


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