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What are the requirements for a contractor to file a lien?

CaliforniaMechanics LienRight to Lien

Our home was affected by the Tick Canyon Fires on October 24, 2019. We had a very smokey smell in our home but no actual fire damage or visible smoke damage. We called a restoration company out to let us know if we needed services. We were told that our home required immediate remediation services. The restoration company placed air scrubbers in our home for several days. They removed our insulation and sent a cleaning crew to clean the surface area of the home to eliminate the soot that was present. After this work had been completed the restoration company sent my insurance company an exorbitant bill.The bill was 5 x the amount of the insurance adjusters estimate. I was certain this was a clerical error and asked the insurance company to check into it. They did and were told by the restoration company that they had completed the job and this figure was correct. They expected the insurance company to remit payment immediately. The insurance adjuster denied the claim and told the restoration company to send in a new bill with only the work that had been completed. The restoration company continued to claim they had completed all work as stated in their bill. I was called on by the insurance company to inform them of what work had actually been completed. I let them know and they ran a new estimate saying the restoration company was only owed approximately $2000. I also sent evidence that the restoration company had damaged my home in multiple places. Someone stepped through the ceiling in my living room and also tore up the duct work in the attic.The insurance company instructed us to no longer allow these contractors in our home and to hire a new company to come and fix the remaining issues and repair what restoration company A had damaged. The new company charged $5000 to restore the damages to my home. Therefore the insurance company is stating that they do not owe restoration company A any money as they caused more damage than they are owed. The insurance company has informed me that they have turned the name of restoration company A into the insurance commision for fraudulent practices. Restoration company A is continuing to email my insurance company seeking payment. I have never received an invoice or any attempt by restoration company A attempting to receive payment. In the latest email to my insurance company restoration company A has threatened to place a lien on my home if the insurance company does not remit payment in full this week. Can you please tell me what steps restoration company A must take to place a lien. What recourse do I, as the homeowner, have since this would be a fraudulent case for a lien? Thank you very much

1 reply

Feb 7, 2020
In California, like every other state, there are specific requirements that must be met in order for a claimant to file a valid and enforceable lien. While lien protection is generally provided to all parties who perform work for the construction or improvement of property, there are potential notice requirements, timing requirements, form requirements, and more. First, all parties who perform work on construction projects are generally required to provide a preliminary notice in order to retain lien rights. However, parties who contract directly with the property owner are only required to provide a notice to the construction lender, if any. When a notice is provided, or not required, the requirements of the lien itself must still be met. A California mechanics lien must be filed within 90 days of the completion of the project, although that deadline can be shortened to 60 days from the filing of a notice of completion or cessation. The lien has several formal requirements, as well. You can read about the form and procedure requirements for filing a California lien, here. It is worth noting that a lien is only valid for an amount that is actually due, and cannot exceed the lesser of "the reasonable value of the work provided by the claimant, or the price agreed to by the claimant and the person that contracted for the work." Once the lien is filed, an action to enforce the lien must be filed within 90 days after the lien is recorded. If the action is filed, the property owner and any other interested party can present the defense to the lien claim; and if the enforcement action is not filed in time the lien can be extinguished and removed. Additionally, a party claiming a lien in California must be licensed if a license is required for the type of work, and the failure to be licensed not only forbids the filing of a lien, but also the right to payment at all.  
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