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Regarding Stop Notice

California

My General Contractor Angeles would like for me to withdraw the Stop Notice once I do they are willing go pay half. My question if I do that do I have a leg to stand on for the remainder. How do I protect myself. If they do not pay the remainder.

5 replies

May 12, 2023

You can provide a partial release of your stop notice, reserving your right to payment to the remainder. I suggest you have a construction lawyer help you with the correct form. 

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May 12, 2023

Thank you, I will need to bring this up with my General Manager. 

She is on vacation until next week. We will need to draw up the forms.

Gary 

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May 19, 2023

Good afternoon, Atty Ginn,

Thank you for your response, however I would like to know if there are any other options. The reason for which our client is requesting that we release the Stop Notice is that their payment from the county is being held up due to the Stop Notice. If we provide a partial release, I do not see that their position with the county would change. Their funds would still be placed on hold.

Please correct me if I am wrong in my understanding. We as subcontractors performed work for the GC on a county job. The job was completed as of November of 2022. Because we are now many days over the 90 days of expiration of period, we no longer have any legal rights, and providing them with a release of Stop Notice would be simply a good gesture in our part. We would not be losing any legal rights, as we no longer have any.

Thank you in advance.

Leticia Covarrubias

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May 19, 2023

As I understood your situation, you have a stop payment notice with a public entity, and the public entity is holding back money paid to your contractor. The contractor has offered to pay you half of your claim in exchange for a release of your stop payment notice. You wanted to know how you could still go after the remainder. I advised you could do a partial release of the stop notice. Now, you claim that it is too late to pursue the stop payment notice, but I think your understanding of the time limits may be incorrect. I think you should consult with a construction lawyer concerning all of the facts, so that you can be advised as to your legal rights. 

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May 20, 2023

Thank you.

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