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What's the time frame to file a lien?

CaliforniaLien Deadlines

My house burnt, insurance adjuster brought a GC with them, signed contract under stress, not much explanation just sign "don't worry." For months no work was done due to Asbestos. GC told not to worry about old contact it was no longer valid. Five months after, GC comes new contract "for review" and 7 days later, I refused to sign, contract is one sided, 3 days later, I noticed broken glass, mess, left my house unprotected. I email my GC and not only did I reinstated, I didn't agree to contract, but prohibiting him from entering my house. He agreed to stopped all work and plans check, honestly didn't know what he was talking about. I found out he not only attempted to put all wrong size windows damaged stucco, but had file for permits. Discussed all this with insurance to no help. He threatened me to file a lien asap, to voicemail saying I couldn't build with 2 permits, threatened it be a mess. I canceled permits with city 2 months ago. What's puzzling is that, I received a letter from insurance with invoices, old contract. I have NEVER received an invoice, bill, nor was informed of ANY work done, i requested that from insurance and him. Insurance says, he has merits for lien, lawyer said that contract didn't have a $ amount, no work was done. Why would a GC do work without sending me invoices? Install horrible windows, do damage, but windows are not part of invoice? I'm confused as to what's date to file a lien? Date we both agreed? Date i file city permits cancellations with signature/states project completion/cancellation. Trying to talk to GC only brings more problems, he lies (contract stated i requested his services by phone? He also said my house had 98% asbestos, etc,etc). DOES HE HAVE GROUNDS TO FILE A LIEN? WHEN IS THE DATE OF STOP WORK?

1 reply

Jan 11, 2021

CA's mechanics lien deadline is generally based on the date the project was completed. In situations where the project doesn't actually get completed, but there's a termination or some other cause of the work stoppage, calculating the "completion" date for the purposes of a lien deadline gets pretty confusing. However, this article breaks things down pretty well: When Is A California Construction Project Substantially Complete?

As for whether or not a contractor has the right to file a lien - CA contractors will generally only be entitled to file a mechanics lien if they've performed authorized work but not been paid for that work. So, if you never agreed to let a contractor on site, or if they haven't actually performed the work they're trying to claim a lien for, then they might not be entitled to mechanics lien rights. Further, CA's lien statute limits lien claims to the lesser of the contract price and the value of the work they've done. So, if they haven't actually improved the property, they won't be entitled to lien rights.

On top of that, note that there are specific form requirements for CA home improvement contracts. And, if not followed, there may be legal consequences for the contractor. Further, keep in mind that filing a claim against the contractor with the state licensing board (CSLB) could be useful, as well. If the CSLB finds the contractor has acted improperly, the contractor's license could be put in jeopardy and the contractor may be more motivated to resolve the dispute.

Helpful resources

Finally, if it looks like this dispute is becomeing too convoluted and that you need the help of an attorney, you can begin the search here: Top California Construction Lawyers. These resources should help you to understand the situation in better detail as well: (1) I Just Received a Mechanics Lien Threat – What Should I Do Now?; and (2) A Mechanics Lien Was Filed on My Property – What Do I Do Now?

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