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Can we file a Mechanics Lien and is it wise?

CaliforniaMechanics Lien

We have a subcontract for significant landscape works on a larger home construction project. The General has only made one progress payment and says he is in a dispute with the Home Owner with no end in sight, and will not pay us anything further until they get paid. The General will not disclose or substantiate in any way, what the dispute actually is. Additionally, according to our contract with the General, we are expected to deliver all aspects of the contract...labor, materials and related services, even if there is a dispute and interruption in payment. Question #1: Do we have grounds for and is it Wise to file a Mechanics Lien on the property? Question #2: if advisable to file the Lien, do we cease work on the site, or continue contracted work through completion? We greatly appreciate any good Counsel Paul Hazell, General Manager Rock and Rose Landscapes 415-716-4102

1 reply

Dec 9, 2019
Hello Paul, Your rights, duties, and responsibilities are largely governed by your written subcontract with the GC.  Of course, the mechanics lien law comes from the Civil Code and largely supplements your contractual rights. Whether you continue to perform work or suspend until payments are brought current is a common issue, and you should discuss this issue with counsel of your choice.  This is a very important decision that cannot be answered in this Forum.   I can tell you that you cannot record the lien and then continue to do work; in essence, if you decide to treat your subcontract as terminated, then you can record a mechanics lien. ---CN
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