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Can I proceed to file a lien? can I take him to court?

CaliforniaLawsuitMechanics LienNotice of Intent to LienRight to Lien

Project started on October 20, 2020 We are the prime on the project and hired other subcontractors to fulfill the needs of the emergency services. last day on job was dropping off couch/contents on march 25, 2021. All charges are a little bit over $25,000 homeowner is refusing payment saying these charges are unreasonable and not consistent with industry standard, when they are 100% reasonable and it is industry standard xactamate team line items we get paid for on every job. Except this is a liability claim because his neighbor leaked into his house and they are not paying for any mold work or any virus work there are exclusions on that. He is also stating that I do not have a legally mandated written contract that is required under California contractor state license board. We have an emergency services authorization. There is no way to even get close to telling what the damages were before the job was started. Same thing we do on every job. I issued intent to lien and intent to foreclose paperwork a month or so ago but chargers were still ongoing as we were still storing his couch. Can I retract those in issue a new intent to lien with the new total. I know he has received money I think a total of 18 or $19,000. The homeowner mentioned that it was around $6000 less than my billing if he would eat half of it would I eat half of it. I told him I can take 10% off anything more than that could be considered insurance fraud. He wanted me to eat $3000 the 10% off was around $2500 and all communication has failed since then. He did reply to my payment reminder saying that I am overcharging and adding O&P when it is not warranted. The white paper from Xactamate states that overhead and profit is warranted. A bunch of BS

1 reply

May 4, 2021

If you've performed work that permanently improved the project property, but have not not been paid for it, and if the deadline to file has not yet passed, then yes - a mechanics lien will generally be available for that work. That being said, lien rights are generally available to the extent that the property is being permanently improved. Specific charges unrelated to the permanent improvement of property, like couch storage, will generally not be lienable.

Additionally, note that lien rights are generally available even when it's not the property owner who's going to be making payment. Lien rights arise against the property, itself, when work is done to that property - and lien rights don't arise against the specific individual. So, even when an insurance company or someone else is paying for the work, lien rights against the project property may well be on the table. More on that here: Do You Still Have Lien Rights If Someone Besides the Owner Is Paying for the Work?

Regarding the CA home improvement contract requirements - that's a complex issue, and I'll admit that I'm not terribly familiar with those requirements and whether emergency work would be exempt from the contract requirements. Still, I assume that there are likely some exceptions to the requirements, particularly in emergency situations. Contacting a California construction lawyer would be helpful for clarity on potential exceptions. You can find an attorney who might be able to help, here: Top California Construction Lawyers. Note that Levelset can also help to connect with CA lawyers through Legal Guard, too: Legal Guard | Put a legal team in your corner.

Finally, regarding a potential retraction - there's generally no need to officially retract a Notice of Intent document. They're not required in California, and if you'd like the threaten a mechanics lien for an updated amount, then sending another Notice of Intent to Lien could certainly do that.

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