I am a sub contractor. We performed work on multiple projects for Horizon Solar. They stopped paying us so we sent out notices to lien. Looks like we have missed the deadline to file a lien on a handful of these projects. Will it still be effective at this point to file the lien?
It depends on how clear the completion date is and when the deadline lapsed. If a notice of completion or notice of cessation was filed, then the deadline is clearly 30 days from that notice. But if the deadline is 90 days from project completion and there were other trades, it is possible that punch list or other trades continued longer than you believe. If the money is substantial, it may make sense to error on the side of assuming the lien is valid for the time being. Especially because you may want to file a breach of contract action anyway.
Another possible argument that currently exists applies to deadlines that may have lasped after the April 6, 2020, adoption of Rule 9 by the California State Judicial Council 9 in response to the COVID-19 pandemic. The rule originally tolled the statute of limitations for all civil causes of action from April 6, 2020 until 90 days after the Governor lifts the current State of Emergency Declaration related to the COVID-19 pandemic. It was later amended to toll statute of limitations from April 6, 2020 until August 3, 2020 for civil causes of action that are 180 days or less. It is unclear whether or not this extension and tolling of deadlines applies to the statutory deadlines for filing and perfecting mechanics liens. But there is certainly an argument that it should and does.
If you require legal advice email me at ryan@huntortmann.com to schedule a free consultation.
No. If you've missed your deadline to record a lien, it won't be effective to do so. You still have breach of contract rights - 4 years from date of breach on a written contract. If you would like to discuss, feel free to call.
Carlton & Alberola and/or Andrew Carlton have not been retained by the recipient of the above comment and, moreover, the above comment does not create an attorney-client relationship. The above is general commentary based on limited and insufficient information. If you wish to obtain legal advice, please contact Andrew Carlton at 949-954-6666 x101, or by email at andrew@cnalawfirm.com.