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 may record its lien. In Howard S. Wright Construction Co. v. BBIC Investors, LLC, 2006 DJDAR 1339, the California Court of Appeal considered the reverse issue, i.e., when is the earliest time an original contractor may timely record a mechanic’s lien under California Civil Code Section 3115? Section 3115 provides that an original contractor may record a claim of lien “after he completes his contract . . . .” In Howard S. Wright, the California Court of Appeal held that a contractor “completes its contract” within the meaning of section 3115 not only when it substantially performs its obligations under the contract, but also when the contract is terminated prematurely by the owner, or the contractor is discharged from any further obligations under the contract by the owner’s material or anticipatory breach
Continue Reading California Court Of Appeal Holds That A Contractor “Completes His Contract” Under Civil Code Section 3115