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Do I file a mechanics lien or Stop Notice?

CaliforniaPayment BondPayment DisputesRecovery OptionsStop Notice

I am a material supplier and filed a stop notice for a job with the County of San Diego and received the following message: "We have received your legal notice under Civil Code Section 9350 et Seq., dated June 19, 2020, claiming an amount due for work furnished to Prime Contractor (optional Power and Cable Solutions) pursuant to a public works contract. The legal provisions cited in this notice are not applicable, because the agreement between the County and Optional Power and Cable solutions was for a purchase of goods and not a public works contract." Also, A Third party company placed the order for the County, and the county installed the materials themselves. The county did not require the third party company to provide a performance bond. Was I supposed to file a lien instead of a Stop Notice?

1 reply

Jul 8, 2020
If work was done on publicly owned land, then a mechanics lien generally won't be available because public land can't be liened. More on that here: The Difference Between Public and Private Projects.

Forcing payment when bond claims or stop notices aren't available

From the sound of it, the project was structured in a way that doesn't require that the third party company to secure a bond and renders stop notice provisions inapplicable. If the job was truly a purchase of goods, and not a public works job, then the payment protections designed for public works projects (like payment bond claims and stop notices) wouldn't be applicable. Though, for clarity, it might be helpful to consult with a local California construction lawyer to ensure everything's on the up and up. Even if a stop notice or payment bond claim isn't available, there are other ways to force your customer to pay you what you're owed. For one, sending simple invoice reminders can prod them into paying what's owed. When they see an invoice reminder, they'll need to make the decision to either pay you, ignore the notice, or respond in some other way. Or, turning up the heat with a payment demand letter could be effective, too. Sending a demand letter that includes specific legal threats (such as a breach of contract claim) will let the customer know you mean business and that nonpayment isn't an option. Lastly, pursuing legal claims could be an option too. Consulting with a local California lawyer can help identify what claims will be available. Plus, depending on the size of the claim, taking the matter to small claims court may be an option. And, as always, reaching out to a collector about placing the debt with them could be another alternative.
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