Legal Question in Business Law in California

Lien

If my company did the coping work for a law firm and they win the case we did the work for, and before paying our invoice the firm went into liqudation can my compnay put a lien on the judgement they won to help secure payment or at least most of it.

Thank you. Liz


Asked on 7/07/03, 1:15 pm

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Lien

The answer is basically no; an ordinary commercial contract does not give rise to an interest upon which a lien can be filed. This is in distinction to a work of improvement on real property, where "mechanics" can file liens for the value of labor and materials furnished.

There is a means whereby an unsecured creditor can obtain a prejudgment attachment, but it requires a lawsuit and a special application to the court showing that the debtor is likely to hide or divert assets unfairly, and I think your prospects against a law firm would be weak.

You did not say whether the firm was a partnership or a professional corporation, nor whether a bankruptcy was involved. These factors could affect the answer and your remedies.

If the amount involved is large, it could be worthwhile discussing your case with an attorney who specializes in credit and collection matters, or bankruptcy if that aspect is present.

Read more
Answered on 7/07/03, 1:51 pm
Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Lien

If you get a judgment you can lien their interest in the judgment. The do not, however, have a lienable interest in the judgment unless they have a contingent retainer interest. Do you know what kind of a case this was?

Read more
Answered on 7/07/03, 1:30 pm
Joel Selik www.SelikLaw.com

Re: Lien

Does your agreement provide for a lien? If not, no.

Joel Selik

www.SelikLaw.com

800-894-2889

Read more
Answered on 7/07/03, 1:36 pm


Related Questions & Answers

More Business Law questions and answers in California