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What do we do next?

California

We were a subcontractor on a job. The contractor paid us $7,000 of the $16,000 they owe us. We have been trying to collect the remaining $9,000 for months now. The contractor tells us that the owner hasnt paid him so we have contacted the owner and she claims she has already paid the contractor in full. They both tell us "do what we gotta do to collect"! We have already filed a mechanics lien, so what is our next step?

1 reply

May 29, 2020
You have 90 days after recording the lien to file a lien foreclosure action. Record a lis pendens in connection with your lien foreclosure lawsuit. If you have the ability to serve a bonded stop payment notice, that could give you some additional remedies. You probably have rights under the terms of your subcontract to pursue in the same lawsuit. And if the contractor is lying to you, explore whether you have a valid fraud claim. That would require you to show that you did something in reliance upon the contractor's fraudulent statements or false promises.
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