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Is this possible.

California

I loaned a block layer $4000.00 to start a residential block wall because he spent the $4800.00 material money the contractor gave him to start job, the first day he got it at the casino. Can i file a mechanics lien because i essentially paid for the material to start the job? and who do i file on? the contractor, homeowner, ????

1 reply

Aug 20, 2019
In order to file a valid and enforceable California mechanics lien claim, the lien claimant must have provided authorized work that permanently improves the project property. Merely providing financing for someone else's improving of property generally will not give rise to lien rights. To be sure, § 8400-8404 of the California Civil Code dictate who is entitled to file a California mechanics lien. Under those sections, only those who provide "work authorized for a work of improvement" (emphasis added) are entitled to file a mechanics lien. And, as defined by § 8048 of the California Civil Code, "work" does not include financing or loaning funds. Rather, it's defined as "labor, service, equipment, or material provided to a work of improvement." So, while there may be a debt between someone loaning funds and a contractor, that debt is very likely not recoverable by way of a California mechanics lien claim. For a discussion on some recovery options outside of the mechanics lien process, here's a helpful resource: Can’t File a Lien? Here Are Some Other Options For Recovery. Further, Rocket Lawyer has an article that might be helpful, too: How to Collect Personal Debt from a Friend, Family Member, or a Business.
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