Tag Archives: Bonds and Stop Notices

New Court Decision Clarifies Mechanic’s Lien Valuation Statute

The amount of a mechanic’s lien in California is generally the lesser of: 1) the reasonable value of the work; or 2) the price agreed upon in the lien claimant’s contract. But does the same measure apply if a lien defendant was not a party to the contract? In Appel v. Superior Court of Los … Continue Reading

Special Advisory: New Mechanics Lien Act in California

In 2010, the California Legislature enacted Senate Bill (“SB”) 189 to reorganize and simplify the laws governing works of improvement. The bill completely re-writes the statutes which provide for mechanics liens, stop notices and certain construction bonds. These revisions took effect on July 1, 2012. In addition to this reorganization, some substantive changes to the … Continue Reading

Court Broadly Defines Subcontractors Who Qualify For Payment Bond Claims

Can a supplier of construction materials be considered a “subcontractor” for purposes of enforcing its claim on a public works payment bond? The answer is “yes” according to a recent decision of the California Court of Appeal. In Eggers Industries v. Flintco, Inc., et al., 201 Cal. App. 4th 536 (3d Dist. 2011), rev. denied … Continue Reading

The Year 2010 In Review: Mechanic’s Liens, Lis Pendens and Construction Bonds

This article is the third in a series summarizing construction law developments for 2010. By Candace Matson, Harold Hamersmith & Helen Lauderdale A. Mechanic’s Liens 1. New Requirement for Mechanic’s Liens (AB 457) Effective January 1, 2011, Civil Code Section 3084 is amended to require that mechanic’s lien claimants must give notice of certain information included … Continue Reading

Mechanic’s Lien Update: Lien Claimants Must Now Give Owners “Notice of Mechanic’s Lien”

By Edward Lozowicki & James Higgins California contractors and material suppliers beware. Beginning on January 1, 2011, a mechanic’s lien claimant will be required to give notice of a mechanic’s lien to the property owner. The notice must contain specific information, be included on the lien claim and be accompanied by a proof of service … Continue Reading

Appellate Court Finds That the Filing of a Stop Notice Is Potentially Subject to the Litigation Privilege if Made in Good Faith Contemplation of Litigation

In AF Brown Electrical Contractor, Inc. v. Rhino Electric Supply, Inc., issued March 23, 2006, the Fourth Appellate District was faced with the question of whether an electrical supplier’s conduct in filing a stop notice fell within the ambit of C.C.P. § 425.16, the anti-Slapp statute.… Continue Reading

California Court Of Appeal Holds That A Contractor “Completes His Contract” Under Civil Code Section 3115

When The Owner Anticipatorily Breaches The Contract, And Therefore A Lien Recorded One Day After The Breach Is Not Premature Howard S. Wright Construction Co. v. BBIC Investors, LLC, California Court of Appeal, First Appellate District, 2006 DJDAR 1339 Cases concerning the timeliness of recording a mechanic’s lien generally concern the latest time a party … Continue Reading
LexBlog