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A contractor flooded my house and filed an extortionate mechanics lien. What can I do?

CaliforniaConstruction ContractLawsuitMechanics LienPayment Disputes

The contractor I hired I fired in a day of starting work. He started demo without permits and the job was shut down and he did not cap the old water pipes outside and they flooded the first floor and went into the basement. I fired him when I found my house was flooded from his negligence. I paid him prior to him starting $7,000.00 which he cashed before he started. When I told him he was fired he told me I wasn't getting any of my money back and I would be owing him a lot more money. I asked for what and he said he didn't know yet but would send me a final bill. I have received his final bill and have called the people he claimed he paid and one of them told me she was his wife's friend and never received any money from him. He also made up other bills to try to get almost $6,000.00 more dollars from me for 4 hours of work. He has put a mechanics lien on my house for $5,958.42. I consider this fraud and extortion.

1 reply

Sep 28, 2017
California mechanics liens are limited to the "lesser of the following amounts: (1) The reasonable value of the work provided by the claimant. (2) The price agreed to by the claimant and the person that contracted for the work." Accordingly, it appears that the lien filed may be excessive and improper. You may demand a release of the lien, and in addition there are likely causes of action that can be threatened and asserted against the contractor. California recognizes a "slander of title" action; and other causes of action like breach of contract, negligence, etc. may provide recoverable damages.

There are many reasons that a lien may not be valid or enforceable even if the amount was correct. There are timing, form, filing, and service requirements that must be met. It is possible that there may be something to examine here, as well.

Finally, it is a crime to record a false document in California pursuant to California Penal Code 115 PC. This means that if the mechanics lien was filed for money that wasn't owed, the contractor could be guilty of a felony, with penalties potential penalties including between 16 months, to three (3) years in prison, and/or a fine of up to ten thousand dollars ($10,000). Additionally, there can be an additional fine of up to $75,000 if the alleged false document places an encumbrance on a single-family residence. This knowledge may be enough to get the contractor to release the lien voluntarily.
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