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What are average costs to perfect a lien in CA?

We are a supplier on a private project in CA. We have not been paid for 50% of our debt and feel sure we will need to not only file a lien, but will need to perfect it. Typically, what kind of costs are we looking at if we have to perfect a lien in CA?

8 replies

Sep 16, 2019

Good afternoon! The cost to perfect a lien (i.e., file a lawsuit to foreclose upon the lien) can vary depending on the nature of the claims and the firm you decide to use, but it should take an experienced construction attorney about 90 minutes hours to draft the lawsuit, plus a $450 Superior Court filing fee. Thus, assuming the attorney has a $300 billing rate, you are looking at $900-1000 total to "perfect" the lien.

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Sep 17, 2019

Thank you Christopher! I have a few more questions: A brief summary of our situation: The contractor we are working with is claiming we did not meet their material requirements because our production run did not match previous projects/phases we had produced for them in the past on the same jobsite. Our position is that we had received their approval to move forward with production of the goods for the current phase; that if the current product did not meet their requirements it is because they did not fully vet our samples before giving approval to move forward with production. We advised them in writing we were hesitant to move forward because we noticed some differences, but they directed us to move forward with what we had been given. Now they want us to replace the entire production run for half the cost. Additional questions: C<span style="color: #44546a; font-family: Calibri, sans-serif; font-size: 11pt;">an you speak to how the contractor's assertion of a claim may affect the perfection of our lien? Are we looking at hours of argument in court?</span>

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Sep 18, 2019

I wish I could provide you a straightforward response in this forum, but a thorough response will require a complete download of all pertinent facts, including a review of the contract documents between the parties. You should consult an experienced construction attorney of your choice to continue the conversation so you can ascertain your rights, duties, and obligations and how to best proceed forward.

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Sep 18, 2019

Thank you Christopher. Can the secondary questions be answered in a general sense? We believe we will have to perfect the lien because of a claim. How might a contractors assertion of a claim affect the perfection of our lien? Could we be looking at hours of argument in court?

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Sep 18, 2019

You really should discuss your situation with an experienced construction lawyer as soon as possible!

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Sep 18, 2019

Thank you again Christopher. one last question: is there a difference between "perfecting" a lien and "enforcing" a lien? If yes, can you clarify it? Thank you!

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Sep 18, 2019

It depends who you ask! Broadly interpreted, perfecting a lien can include: (1) proper and timely service of the preliminary notice; (2) timely and proper service and recording of the mechanics lien; and (3) timely and proper lawsuit to foreclose upon the mechanics lien.

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Mar 14, 2020

I just wanted to follow up and confirm you've been paid on this private project in CA. If I can further assist your company with any unpaid invoices, please feel free to call or email. My firm can collect for you even when lien rights have expired or were never pursued. Mike Ross Miller, Ross & Goldman mross@mrgpartners.com (512)275-6412 Direct https://www.mrgpartners.com/levelset

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