Legal Question in Construction Law in California

Re: removal of mechanics lein & complete project & damages

It's hard to tell all that is going on from your note, but you might be shooting yourself in the foot. A common error that homeowners make is withholding everything rather than just what is in dispute. You expose yourself to penalties and attorney's fees if you withhold money that is not in dispute. Do a careful accounting to make sure you're only withholding items that are in legitimate dispute. You can withhold 150% of the amount in dispute.

The recording of a mechanic's lien is considered "privileged" and filing for more than the final "voucher" is essentially irrelevant. It's pretty hard to invalidate a mechanic's lien for being for the wrong amount. If you need to refinance, purchase a mechanics lien release bond. Litigation can take many months, often years.

The notice of completion may be irrelevant also. It may be void for being recorded too early, but it really doesn't matter if your contractor promptly recorded his lien. The only thing a Notice of Completion does is shorten the time frame in which prime contractors and subcontractors can record a lien.

What happens next? Probably, the contractor will sue you to foreclose the lien. A lot of contractors, however, don't really understand that they only have 90 days from recording the lien to filing the lawsuit. So, a lot of liens go stale.

Re: removal of mechanics lein & complete project & damages

In the words of the great football coach, punt. My initial question is what possessed you decide a notice of completion. Was there any person or persons who told you to do so. Did your foreman to you to do so. Do you have a foreman. So many questions and so few answers to guide me to really help you. There are a myraid of different things the you can do. But that would depend upon answers that you we give to questions I would ask. What you really need to do you is standup, turn off of the monitor, and set an appointment with an attorney who is eight real estate/construction expert who can ask the right questions and give you the proper right alternatives to choose from. City of front of the monitor is not going to help you because you have screwed up. And merely asking a question does not meet you can actually help yourself. More likely than not you're going to screw up the matter even worse. Get yourself to the attorney who can help you. Mechanic's lien law is statutory law which means that you have specific periods of time in which to do something to aid yourself. You started the ball rolling when you recorded your notice of completion. That forced the contractor to record his mechanic's lien with headache specific period Of time, 30 days. Expect a lawsuit to be filed quite shortly. Therefore, get thee to an attorney immediately.I have practiced law in the San Francisco Bay area for over 30 years and feel quite confident in terms of my familiarity with your problem. If you wish to contact me to set up an appointment please call me at 925-945 -- 6000.