Legal Question in Real Estate Law in California

contractor property lien

A licensed contractor fails to complete the last 10% (est) of a home remodeling contract. He underestimated his costs and he used non-professional employees/sub contractors. The contractor ''walks away'' and files a ''lien''. But he is clearly not entitled to be paid for work not done or workmanship of very poor quality.

1) how does the homeowner get rid of the lien?

2) does a court judge decide if the lien is valid?

3) Are there time limits to filing papers?

4) what are the papers to be filed?

5) what is the basic legal process of filing a lien, proving the contractor is not entitled, and eliminating it?


Asked on 11/08/04, 5:13 pm

3 Answers from Attorneys

OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: contractor property lien

The lien may last up to one year.

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Answered on 11/10/04, 12:00 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: contractor property lien

Your question might attract more answers, and better ones, if re-asked under the heading of "Construction Law" on LawGuru. I will take a shot at answering your question, however.

First, a mechanic's lien arises as an automatic result of a worker or material supplier furnishing labor or materials to a "work of improvement" on real property.

In order to be enforced, however, a worker or supplier must record a claim of lien (see Civil Code section 3115) and in some cases must give the owner a written preliminary 20-day notice (Civil Cide section 3097).

A recorded claim of lien has a duration of only 90 days per Civil Code section 3144. If the claimant fails to initiate an action to foreclose the lien within that time, the lien becomes null and void. Sec. 3144(b).

If, on the other hand, the contractor decides to file suit, the court will hear both sides of the dispute and decide whether the contractor is entitled to recover.

If sued,you should check with your homowners liability insurance carrier to see if they will defend the action and/or reimburse you for any claim.

So, the answers are:

(1) Although you could sue to expunge the lien, this seems like an unnecessary step. If the contractor doesn't sue you, it will expire.

(2) The Court would rule on the validity of the lien per se as well as on the validity of the money claims presented by the contractor and you, and any other issues presented by any suit filed by either of you. If it were a jury trial, the "fact" issues would be submitted to the jury for determination.

(3) Yes. See, for example, the Civil Code sections cited above.

(4) I hope the answer(s) to this question are clear to you. If you are asking specifically what papers must be filed to remove the lien, the answer is none; it will either expire or suit will be brought by the contractor. Of course, if you are served with a summons and complaint, you must file an answer.

(5) Hopefully answered above, or at least your review of the Civil Code will reveal what you need to know about lien law. The lien itself involves a somewhat different body of law than does the contract law covering the underlying dispute. A court will probably adjudicate the contract dispute prior to determining the validity of the lien, because if the contractor is found to be owed nothing, the validity of the lien is moot.

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Answered on 11/08/04, 8:16 pm
Larry Rothman Larry Rothman & Associates

Re: contractor property lien

Has 90 days passed since the lien was recorded? You have a right to sue him for your damages and also to remove the lien. We would have to review your documetation in order to provide you with further information.

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Answered on 11/12/04, 10:53 am


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