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If a vendor did not file a preliminary lien notice and files a stop notice, is the stop notice legitimate?

CaliforniaStop Notice

I'm a CM overseeing a residential subdivision development. The trucking company hired by the grader is threatening to file a stop notice for non-payment. The trucking company did not file a preliminary lien notice. I understand that if you have lien rights you can file a stop notice. Since a preliminary lien notice was not filed, will a stop notice be legitimate?

1 reply

Apr 5, 2022

If the trucking company is in contract with the grader, and the grader is in contract with a general contractor, then the trucking company would need to serve a Preliminary Notice in order to be able to assert a Stop Payment Notice on a private works project. If the trucking company sends a Preliminary Notice during the course of the Project, they may be able to assert a Stop Payment Notice for services provided within twenty days from the date that the Preliminary Notice was served, and then for the remainder of the Project.

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