We are the Direct or Prime Contractor on the project. Our pool subcontractor hired a sub-subcontractor to perform the gunite and tile work. We paid our pool contractor in full but the pool contractor failed to pay his gunite and tile sub-subcontractor. The gunite subcontractor is now threatening to place a lien on our client's (homeowner's) property. We have just learned of the non-payment and lien. We, the direct contractor, did not receive a pre-lien notice. When I read Ca Civil Code 8200 (2), I read it as saying the direct contractor is supposed to have received a pre-lien notice. Am I right? Does this make the potential lien invalid? TEXT: "(2) The direct contractor or reputed direct contractor to which the claimant provides work, either directly or through one or more subcontractors."
If the sub-subcontractor did not properly serve a preliminary notice upon the owner and the direct contractor, it is possible that a mechanics lien from this sub-subcontractor may be invalid. Just because you didn't receive the preliminary notice may not be the end of the analysis (e.g., the preliminary notice could still be valid if the sub-subcontractor paid for a certified mailing or other permitted delivery regardless of whether the notice was received).
---CN