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Is my lien valid

I’m trying to find out if our lien could still be valid. Background information...contractor paid a partial bill and his check was returned and he has failed to make a valid payment. I filed a preliminary loan with him and the commercial property owner. At the time I did not know who the business owner was. I then filed a lien and now had the business owner information (no preliminary lien was given to them), and was notified that the commercial property owner was not correct and was given the new property owner info and filed a lien (no preliminary lien was sent to new owner as the 20 day has past). The lien was filed by the county clerk on the business owner, new property owner, and contractor (he was listed on the lien, but not served a certified lien since we now had the owners info). Is my lien valid in California since the business owner and new property owner not get a preliminary lien?

1 reply

Aug 6, 2020

Let's look at 3 separate issues from above: (1) CA's preliminary notice rules; (2) Mechanics liens for tenant improvements in CA; and (3) service of filed lien claims in CA.

CA's preliminary notice requirements

For a California mechanics lien to be effective against a particular "owner" (whether that be the fee owner of the property or their tenant), preliminary notice must be sent to that owner. So, if the prelim wasn't sent to a particular owner, that owner's interest won't be subject to lien. If you'd previously requested ownership information from the contractor on this job, they were required to provide it under CA Civil Code § 8208. However, even though it's required, there's no penalty created under the statute - and the statute doesn't specify whether flexibility will be given when a contractor has failed to provide the correct information. Still, it's possible some leniency might be granted.

Liens on tenant improvements in CA

Still - if you sent preliminary notice to the actual owner of the property, a lien might be available against that owner's interest in the property even if the work was initiated by a tenant. Generally, in order for a property owner to avoid potential lien claims from tenant improvements, the owner must quickly send a Notice of Nonresponsibility. That document shows that the property owner didn't authorize the improvement and won't take responsibilty for it - and that lien claims will only attach to their tenant's interest. If the owner knew about the project but failed to send the Notice of Nonresponsibility, then a lien filed against the property owner may be valid.

Service of a filed lien

Finally, regarding service of the lien claim - if you're filing a lien with multiple owners listed, those owners should all receive notice of the lien filing. And, to the extent that an owner doesn't receive proper notice of the lien claim, the lien would likely not be effective against that owner.

Help evaluating your claim

Certainly, having a local construction attorney review your circumstances, the documents that have been sent, and the lien claim you've filed would provide additional clarity. For help finding the right lawyer: Find a California Construction Lawyer. Reviewing the requirements here will help, too: California Mechanics Lien Rules & FAQs.

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