Legal Question in Real Estate Law in California

Re: Who is at the right?

The tenants should have called you. What is the reasonable value of the repair? The participants in the car chase are responsible, and you should make the appropriate claims immediately. Perhaps one or both drivers' insurance will cover your repairs.

Re: Who is at the right?

Without interviewing you in person to get all the details, here is the way I'd guess things stack up:

1. The tenant is liable to you for your losses because he exceeded his authority under the lease (but read the lease!), but probably not for the entire $10,000, becuase you got some benefit. You'd have to prove damages.

2. You are liable to the private company, and it can file and enforce a mechanic's lien, but only if its reliance on the authority of the tenant to act as your agent was reasonable; it probably was, since they were in possession of the property and a presumption of authority is not unreasonable.

3. The tenant may also be liable to the private company under the "undisclosed principal" or "partially disclosed principal" rules of agency law.

4. The driver who did the damage is liable to you. Lotsa luck!

5. The police may be liable to you, if their chase was negligent. It may be negligent if they failed to follow established procedures.

Pretty complicated, huh? You may have some defenses to the private company's action to enforce their lien. I'd suggest seeing an attorney that does mechanics lien work and also professes to know something about the law of agency.