Legal Question in Construction Law in California

20 day preliminary notice

Can an employee of the general

contractor we heve a remodeling

contract with legally file a 20day

Preliminary Notice, and consequently a

Mechanics Lien against our property?

Contract originated January 2006.

We received Prelim.Notice October

2006. He disassociated with the project

August 2006. He was the project

manager and is a licensed

contractor but was working as an

employee of our general. We paid

the general contractor the scheduled

amounts but the employee hasn't been

paid in full. His management was

inferior. He says he will go to the labor

board next. Can he do this?

The contractor has walked out on us

and the job remains unfinished.

We think his claim is invalid due to

timing, but he says we are misinformed

and he has the right to file a claim at

any time, and we are responsible for

paying him.

1. Is the notice invalid because he is an

employee?

2. Is the notice invalid due to timing?

3. Can he file a Mechanics Lien in spite

of it's validity? (This has occurred with

another sub already)

4. What should we do to protect

ourselves?

Thanks for any answers.


Asked on 11/14/06, 7:16 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: 20 day preliminary notice

"Can he?" He already did.

"Can he win?" is a different question.

If you don't know how to handle all the pleadings, procedural issues and time limits in opposing mechanics liens and construction law, hire someone who does; otherwise you could end up paying twice for the job.

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Answered on 11/14/06, 7:52 pm
EZRA FRUCHTER LAW OFFICES OF E. LEONARD FRUCHTER

Re: 20 day preliminary notice

1. An employee is not required to serve a 20 day notice in order to have the right to lien.

2. See answer to #1

3. See answer to #1

4. If the job is incomplete and no work has been done for a continuous period of 30 days, you can record a "Notice of Cessation" which cuts off the rights of laborers and subcontractors to lien the work 30 days after recording. If you do nothing, these people can file their liense up to 150 days after work stopped.

If liens are recorded, be aware that the lien is only valid for 90 days after recording unless a lawsuit is filed to perfect the lien; many lien claimants are not aware of this requirement.

Good Luck

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Answered on 11/14/06, 8:46 pm


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