California  |  Construction Law

Legal Question

Asked on: 10/23/06, 6:35 pm

Wildly fraudulent Mechanics Lien

The general contractor on a condo conversion project was fired, which is allowed under the contract (Termination for Convenience). Fired GC proceeded to file a Mechanic's Lien on the property for the remaining value of the contract--NOT for the value of actual unpaid work completed but the value of future work had he stayed on the project to the end. We are now unable to close condo sale escrows due to the cloud on title. Waiting 90 days until he files a lawsuit to perfect the lien means tremendous lost income for units that we can not close. What recourse exsits for such a blatant abuse of Mechanic's Lien Law?

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