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Mechanics Lien Filing vs Bond

So here is our scenario... We filed a Mechanics Lien & a Bond Claim on a property that is "Bank funded". We filed both because this GC isnt great at communication and we wanted to be sure there wasnt a bond. well...the GC is mad and said this "Needless to say, we are working with the client to get all the paperwork in order. If necessary your lien will be bonded around so your effort to perfect will be pointless" We have already started to process of perfecting the lien. The project itself is still in process. What is the best way to go with this?

1 reply

Mar 31, 2020

You have 90 days after redecoration of the lien to file suit. You should calendar that date and, well in advance of that date, retain a lawyer to file suit to foreclose on the lien. If you fail to do so, you'll lose significant leverage. If they bond around the lien, great. A release bond surety is valuable in that, assuming you are owed the money, the surety will pay if the GC does not. I'm not sure what you mean by "Bond Claim" - is that a license bond claim? Finally, if the project is bank funded, and assuming you served the lender with a 20-day preliminary notice, you'll want to pursue a stop payment claim, too. If you are willing to pay for a bonded stop notice, you can recover your attorneys' fees, too. If you would like to discuss further, my office number is 949 954 6666 x101. Thanks, Andrew

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