A contractor we hired badly botched our contract on multiple fronts, barely finished 50% of teh job before giving up. He has been paid 50% of the contract but thinks he should be paid on 80% of the contract and put a ML on title for 9K . We spent 3K on legal fees already and our attorney thinks we have a claim for fraud in the inducement but no longer does litigation. Whats our best approach for removing the ML. Small claims in California is 10K or less - will settling the dispute on the unpaid debt he thinks is owed in small claims bring about removal of the ML?
The mechanic's lien cannot be addressed in small claims. The cheapest way to address a mechanic's lien is to wait 90 days after recording to see if the contractor actually files an action to foreclose the lien. If the contractor does file an action you can file a Lambert Motion in that action to invalidate the lien, provided that you have factual grounds to do so.
If the contractor does not file a lawsuit to foreclose the lien within 90 days after recording, you can make a demand that he release the lien under California Civil Code §§ 8480-8488. If he fails to do so, you are entitled to a summary petition hearing to release the lien and would be eligible to recover the costs for doing so.
With respect to your other claims against the contractor, the most cost effective approach will likely be a claim against the contractor's license bond coupled with a CSLB complaint. But small claims is also an option and likely would be quicker.