In a new case, Hub Construction Specialties, Inc. v. Esperanza Charities, Inc. (filed February 8, 2016, Second District, Div. Eight) 2016 S.O.S. 787, the Court held that under the prior mechanic's lien code (Former Civ. Code, § 3097.1, subd. (a); Stats. 2010, ch....
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Mechanics Liens, Stop Notices And Payment Bonds
Prejudgment Interest is Set at 7% on a Mechanic’s Lien Claim Against Non-Contracting, Innocent Owners
In a recent case, Palomar Grading & Paving, Inc. v. Wells Fargo Bank, N.A. et al., Court of Appeal (2014 S.O.S. 4573) the appeal court held that "We determine it is the constitutional default rate that should apply to prejudgment interest on a mechanic's lien as...
Mechanics Liens, Stop Notices and Payment Bonds
I Forgot To File A Legal Action to Foreclose On My Mechanics Lien Within 90 days: Now What? Or My Contractor Recorded A Mechanic's Lien and not Filed A Timely Lawsuit to Foreclose On It: Now What? By William C Last, Jr. Attorney at Law California law requires that a...
Important changes to lien claim laws become effective July 1, 2012
Senate Bill 189, passed in 2009 by California legislatures, institutes a significant overhaul of lien claim laws. Lien claims include mechanic's liens, stop notice claims, and claims on public works payment bonds. The bill provided that most of the changes become...
Can a project owner sue a contractor for slander of title on the basis that the contractor’s mechanic’s lien lacks merit? The answer is no
Project owners facing mechanic's lien claims they believe lack merit will often threaten to retaliate with a slander of title action against the claimant. But the law generally does not allow a slander claim against a lien claimant, even if the claim lacks merit. In a...
A private works bonded stop notice could be invalidated as a result of a clerical error in stating the claim amount
In a unpublished decision filed October 27, 2011 the Court of Appeals confirmed that a private works bonded stop notice could be invalidated as a result of a clerical error in stating the claim amount. A stop notice may be served on an owner or construction lender to...
Are You Prepared For The 2012 Changes to California Lien Laws?
Over eight years ago, the California Law Review Commission started a review of the California construction lien laws. In 2008, the Commission recommended that the existing mechanics lien statutory laws be modified. Their objective was to modernize, simplify, and...
Beginning in January 2011 Mechanic’s Lien Claimants will be Required to Serve Project Owners a Specified Notice Before Recording Their Lien
At present, to record a mechanic's lien a claimant need only to complete and execute a claim of lien form and record the same at the county recorder's office in the county where the project was located. The claimant has no obligation to inform the project owner that...
Beginning in January 2011 a Lis Pendens Will Become a Mandatory Element to Enforcing a Mechanic’s Lien
A lis pendens (a.k.a. notice of pendency of action) is a document which is recorded against the title of real property to notify interested parties that litigation is pending which impacts the said property's title. The lis pendens protects claimants by ensuring that...
Could California Private Works Stop Notice Claims Be Challenged on Basis That State Stop Notice Law is Preempted by Federal Lending Regulations?
In this era of declining property values, owner abandoned projects, and defaulting developers, the private works stop notice has become a central element in contractor payment claims. The private works stop notice is served on a construction lender along with a bond,...