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What are the rules for filing a CA Preliminary Notice

California

I was scammed by a "fake" and untraceable contractor to the tune of $8750, which was supposed to include the cost of the 2yds of cement. I received a CA Preliminary Notice 10 days after it was poured at my house. The estimated amount showed as $6500. When I asked the cement company for a copy of the invoice, it was $870, which included a $125 Prelim Fee. Not a week later the cement company gave me a statement by email saying the total was now $918. It is legitimate for the cement company to add this Prelim Fee and interest when this had nothing to do with the material he provided. I am willing to pay the original invoice of $745, but feel taken advantage of for the additional two charges. Can he legally do this?

2 replies

May 30, 2023

It sounds like you had no direct contract with the cement company. So the cement company has no claim against you for breach of contract but primarily only to enforce its mechanics lien rights. The amount of the cement company's lien should be limited to the reasonable value of the labor and materials furnished. It appears that "reasonable value" would not include the $125 "Prelim Fee." With respect to interest, the cement company could be entitled to interest if they can prove that the amount owed was fixed on a certain date. For example if there was no dispute that the value of the cement delivered was the amount in the original invoice, then they could be entitled to prejudgment interest at seven percent from the date of the invoice.

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May 30, 2023

I have established contact with the Cement company. I said I would give him the original amount of the invoice to the contractor of $745, but he says he has done plenty of these and is entitled to not only the Prelim Fee of $125, but also the interest of $48. Interesting that the cement work was only done on May 6th, the prelim notice sent by certified mail to my house on May 16th, and he thinks he can charge me $48 for an invoice that has only been outstanding since May 6th. At 7% that would be $4 for 24 days, instead of the $48 he feels he is entitled to. Would you just pay it and call it a day once he gives me a Lien Waiver?

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