We contracted a company to install solar panel system late last year. The project was financed through loan and company was paid in full when panel system was installed, but not fully functioning yet. I learned the company laid off all employees and closed their business down on 11/24/2020. I filed complaint with CSLB and found all assets of the company have been sold off by investors after the company defaulted on loans. There are no funds available to pay off liens or subcontractors. One of the subcontractor filed mechanic's lien and I just received SUMMONS from Superior Court. I need help to either negotiate settlement with their attorney or process of the court procedure. I have paid the project in full, and is now paying for the loan monthly. Would I be required to pay for the project twice because contractor did not pay the subcontractor?
You may be required to pay for the project twice if the subcontractor served you with preliminary notice within 20 days of starting work and you failed to get unconditional waiver's from them before paying the general contractor. If you were not mailed preliminary notice, then most likely the lien is no good. There is a summary procedure called a Lambert Motion that could potentially be used to defeat the claim.
If you have further questions email me at ryan@huntortmann.com to set up a free consultation.