Legal Question in Business Law in California

Re: Mechanic's lien on a property

It sounds to me like there may be a timing issue because the lien was filed so late, or a breach of contract issue if you agreed to a settlement, you paid the agreed amount, and then he filed the lien anyway. One resource you can look at is California Mechanic's Lien Law, which your local library should have (if not, they will likely have something similar). There you should find a checklist of steps for a valid mechanic's lien. In the alternative, if the amount involved justifies the cost, you should seek legal counsel. Mechanic's lien law is complicated even for experienced lawyers.

Re: Mechanic's lien on a property

This is another sterling example of why you should

consult with an attorney before you pay the money,

rather than waiting until after it's paid to try

to get it back. The contractor in this case did

everything wrong:

1. The 20-day notice, if it was required at all (it is not required of a primse contractor, only of a subcontractor), must be served within 20 days of the commencement of the work. If served later, then only work performed back to 20 days before its service may be secured by the mechanics lien. In this case, the 20-day notice was served months after the work was performed.

2. The mechanics lien must be filed within 90 days of the completion of the work. In this case, it was many months late.

3. Of course, the mechanics lien was improper in the first place, because the contractor was paid in full according to the agreement with the owner.

4. Instead of paying the improper mechanics lien, the owner should have filed an action to expunge it. There is a summary action to eliminate such liens, and the contractor even has to pay the owner's attorney's fees for doing so.