I am a concrete subcontractor who is contracted directly through a GC. We hired a subcontractor to provide and place pavers for the project. Unfortunately, they did not do very well and caused a bunch of back charges. They refuse to accept the back charges and demand full payment. Per our contract with them we are allowed to hold up to 150% of the disputed value. They filed a lien on the project in November 2020 before they were finished with their work. The 90 days has passed and they have not foreclosed on the lien. Are they able to refile the lien to get it extended? What are our options? Thank you!
Unless the owner and GC are coming after you, there is nothing you can do to resolve the lien. The owner can file a petition to remove the lien pursuant to Cal. Civil Code section 8480 because the contractor failed to foreclose on it in time.
Those are good questions. If the sub didn’t file a lawsuit to foreclose their lien within 90 days of the lien recording date, then the lien has expired. You or your attorney can write the sub a strong letter and demand that they release the lien. If they refuse, you can file a petition with the court to get the lien released, and they can be held responsible for reimbursing you for your attorney’s fees. However, if the project is not complete and the lien window period is still open, then the sub could file another mechanic’s lien on the property, which would start the 90 day period to foreclose again. This could be a problem if the owner is requiring you to keep the job lien free before paying you. You could bond around the lien which would get the lien off the property and allow you to get paid. You would need to purchase the lien release bond from a bonding agent. I’m happy to answer any questions you have about this.
Cathleen M. Curl, Esq.
Law Office of Cathleen M. Curl
T 650-871-5955