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Do I the homeowner have any protections against the liens

I had a solar company install a new roof and solar panels on my home in October 2019. The project was completed mid November with my final payment being made on 11/18/2019. The solar company subcontracted the roof replacement to a roofing company they use for their projects. Now on 2/28/2020, I receive a letter that a supplier is filing a mechanics lien on my property for non payment of supplies. The roofer called me to inform me that they plan to file a mechanics lien as well. Can they do this even though my contract is with the solar company and I have paid them in full?

1 reply

Mar 4, 2020

Yes. California is generally considered a "full price lien" state, meaning, subcontractors and suppliers are generally entitled to file a mechanics lien for the full amount that they're owed, even if the job's direct contractor was paid in full. However, to preserve this lien right, all subcontractors and suppliers would need to send a preliminary notice at the start of the job. Further, the deadline to file a California mechanics lien is generally 90 days after last furnishing labor or materials to the project. So, if the mechanics lien claimant didn't send proper notice, or if they failed to file their lien within their window to do so, then a mechanics lien filed by that claimant would end up being invalid and enforceable. Now, that doesn't mean they won't actually file the lien claim. They could still place the lien for filing with the county recorder's office, and that lien could still affect the property. However, if the lien were challenged or if the claimant tried to enforce the filed lien, then the owner (or their contractor) should be able to have the lien tossed aside relatively easily. These articles should provide some good insight for you, as well: (1) I Just Received a Notice of Intent to Lien – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?

California contractors are liable for their subs' and suppliers' mechanics liens

A contractor must defend the owner from lien enforcement actions filed by the contractor's subcontractors and suppliers under California Civil Code § 8470. Further, if a California contractor took full payment from the owner, some of which was designated for the payment of subs and suppliers, then the contractor may be liable for additional claims, as well. So, when an owner is threatened with potential lien claims, it might be helpful to contact the contractor immediately to remind them of their duty to defend against the lien claims.

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