Legal Question in Construction Law in California

Mechanic's Lein

If a subcontractor performed work for us and did not file a Preliminary Notice can he file a Mechan's Lien against our customer because we have not paid the sub-contractor for his work in a timely manor?


Asked on 7/30/02, 3:14 pm

1 Answer from Attorneys

Thomas W. Newton Tims & Newton

Re: Mechanic's Lein

When you say "us", I'm going to presume that means

you are a general contractor, and that the you had

the direct contract with the owner. I'll further

presume that the sub in question had a contract only

with you and no direct contractual relation with

the owner.

Nothing will keep the sub from recording a claim of

mechanics lien if it wants to do so. However, under

the facts as presumed above, the sub will not be

able to enforce the lien claim if it has failed to

serve the 20-Day Prelim. (Cal. Civil Code secs 3097, 3114).

The lien will remain of record until released, but

the sub will lose any lawsuit to foreclose the lien, because

service of the 20-Day Prelim is an absolute prerequisite to

enforcing the lien claim.

You need to be aware, thought, that the owner can

look to you to defend the lien claim at your own

expense, and may withhold from you the amount claimed

by the sub.

I'd be in close contact with the owner as to

the reasons for non-payment, and make sure

you're on firm ground in denying payment to the

sub. Best of luck in resolving this, and contact

me if you have further questions.

Now the inevitable caveat: The information provided

above is given as an accomodation only and can not

be considered as specific legal advice based on a

review of applicable facts and relevant documents.

No attorney-client relationship is created, either

impliedly or expressly.

Best Regards,

Tom Newton

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Answered on 7/30/02, 7:57 pm


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