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Can a Design Build company place a lien on my home without ANY work done on the home

We hired a Design and Build company to create architect plans and 3D renderings for a closet and ADU addition. We were to move forward with the permit process and construction but due to COVID and new circumstances, we have been faced with delays and money loss in investments and change in life circumstance and now will not move forward with any work done/construction. We have paid them 10,000 for the plans and 3D renderings and now they are demanding 4,000 more without any work done or invoice to show what this new charge is for. They are threatening to come to our house AND putting a lien on our home despite no work being done. Is this legal? what can we do to protect ourselves. Can they put a lien on our house without any actual work done?

1 reply

Jun 9, 2020

In California, design professionals (architects, landscape architects, engineers, surveyors) are able to file a lien even if work isn't actually undertaken. This is generally referred to as a "design professional's lien" which is a little different from an ordinary mechanics lien (which is limited to the value of work actually done). However, under CA Civil Code § 8302, that design professional's lien is limited to "the amount of the design professional’s fee for services provided under the contract or the reasonable value of those services, whichever is less." So, if some of the design costs or fees haven't been paid, those amounts would be subject to a design professional's lien. However, if payment isn't outstanding for those services, then other amounts allegedly owed should not give rise to mechanics lien rights if work wasn't actually done. However, the alleged additional costs could still be recovered, if legitimate, in some other way. When facing potential mechanics lien claims, it might be wise to consult a local construction attorney for help fending off the lien. Additionally, these resources should be useful: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?

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