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My company provides custom made shelving items for our clients across the US

My client in San Mateo County, CA took delivery of three floating shelves from us, and has not remitted their final payment of 25% to us, after several/many calls from both me and my wife. We would like to be paid our final 25% which is clearly stated in the Statement of Work (SOW) that we provide each and every client. Our payment terms of very clear; 75% down and 25% at delivery. The 75% down provides me the ability to buy the wood and materials for their custom project. We send them all the materials they need to place their shelves where ever they'd like in their home. I believe that my only recourse is to file a Mechanics Lien to receive final payment. I understand the need to provide Intent to file etc. Please let me know if I need to provide more information so you can answer this question - can I file a mechanics lien to get paid? Your insight is valuable.

1 reply

Dec 10, 2019

Unless there's some serious attachment involved to the project property, supplying shelving - even custom shelving - wouldn't seem to give rise to mechanics lien rights. Those who supply materials to works of improvement are generally entitled to file a mechanics lien in every state. But, in order for mechanics lien rights to arise, the materials must typically be used in a way that "permanently" improves the property. Nothing's permanent, of course, but for lien rights to arise - the property must be improved in some lasting, drastic fashion. So, for materials used which attach to the property in an invasive fashion - lien rights could potentially arise. In the event that the materials provided do ultimately constitute a permanent improvement of the property - certain notice requirements must be followed in order to preserve mechanics lien rights in most states. This includes California, where parties hired by someone other than the owner must send preliminary notice within 20 days of furnishing labor or materials to the project. For more information on who's entitled to file a California mechanics lien claim: Who can file a California Mechanics Lien?

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