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Guidance to Litigation to enforce foreclosure on Mechanics Lien

CaliforniaMechanics Lien

I am C-39 Roofing/Siding Contractor in California. DC Roofing & Waterproofing Systems. Upon completing a James Hardie siding, wood facia, exterior rot replacement project, attempting to mediate with the owner via phone 14 days following our completion. I asked the owner why he hadn’t paid, and when he was going to pay? He replied “when you replace my rotted chimney”. The Chimney would have been change order 2, but he •declined proceeding committing extortion. •Failed to pay change order 1 on February 22 (breach) •which was my cost on labor and materials (no profit). Yet we finished the project and it’s outstanding. I even deducted -500 for two small items we couldn’t finish. I don’t think he has the cash due to inquiring about financing early on. • On. April 3rd, we recorded a mechanics in Placer county. Total Contract $14500.00 Client Paid $-8000.00 Change order $+1610.00 Deducted -$500.00 (for 2 small items we could not complete due to dry rot) Outstanding $7610.00 •I’m obviously a business entity (small claims is $5000 below) and mechanics liens foreclosures can’t be enforced in small claims court in California. •CSLB Mediation renders no legal obligation on clients end. •CSLB Arbitration is $15000-$50,000 Any guidance? Anyone think Litigation will make him pay due to fear in paying high Lawyer fees? What’s the cost typically of this very small and not very complicated? Any experience with cases like this?

1 reply

Apr 7, 2021
Costs on any lawsuit vary depending on the fight the defendant puts up, but could easily exceed what you are owed if a significant dispute exists. Your best option may be to pursue in small claims and limit your recovery to $5K, or if you think the pressure of having to obtain a lawyer will result in a quick settlement, retaining an attonrey to file your lawsuit and foreclose on your lien may be best. Either way, you should consult an attorney to determine what route is best for you.
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