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Payment Rights regarding 'Good Faith' Payment

CaliforniaMechanics LienRight to LienSlow Payment

Hello, We have a customer that was invoiced in January, made a half payment in March, had no further communication with us so we liened the property in April. He paid the remainder of the invoice, but refuses to pay the lien fees because he says it was illegal for us to place the lien based on his 'good faith' payment. So, does a customer making a partial payment for their invoice affect our payment rights?

1 reply

Jun 18, 2020
No, it is not illegal to file a mechanics lien when the customer has only made a partial payment. Lien rights will still be available for all amounts that became due but have not been paid. If the lien contains amounts that have already been paid - then that would result in an overstated lien. Though, that seems to be a different situation entirely. Regardless of whether they believe the lien is valid - the customer still owes whatever they haven't paid for the project, and they must still pay what's owed. For help pursuing recovery, I think the articles below will be useful to you. - My Lien Was Challenged: What Do I Do? - The 4 Steps to Take After Filing a Mechanics Lien - Construction Payment: What Is a Notice of Intent to Foreclose?
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