We are a subcontractor working for a GC. We have a supplier who had an issue with their equipment and they had to hire a subcontractor on an emergency basis. Does that subcontractor have lien rights since he 4th tier under the GC.
3 replies
Sep 20, 2019
Tier limits don't matter so much in California for purposes of being able to assert lien rights. The question is whether "that subcontractor" you refer to is actually a "subcontractor" under California law --- or whether that subcontractor is just considered a subcontractor/supplier to your supplier and in that case, is likely cut off from asserting lien rights. Of course, that "subcontractor" to your supplier would also have to timely serve a preliminary notice to have a chance to argue it was somehow entitled to assert lien rights.
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Sep 20, 2019
Thank you for the answer. For a little more clarity here is the situation. We bought pumps from our supplier. The project was down and getting ready to open and the pumps seized up and stopped working due to a manufacturing defect. The supplier instead of fixing it themselves hired another company to do the work. This is a high profile project so it had to be done quickly. The company that fixed the pumps did file a preliminary notice, but the Owner, GC, and us don't owe them any money only the supplier does to fix a defect on their equipment. We are trying to address this with the owner since it was under us. One approach we are looking at is that even though they filed a prelim they actually have any lien rights based on the work they did.
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Sep 21, 2019
Are these pumps specially manufactured and fabricated pursuant to the project's plans and specifications? Did the repair company go onsite and make repairs to the installed pump system?