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Liens
Liens
Recent Issues
FORECLOSURE COULD NOT BE FILED BEFORE LIEN RECORDING
The California statutory 90-day period for initiating a lien foreclosure action starts to run only after the mechanic’s lien is recorded. The foreclosure suit cannot precede the lien recording. If foreclosure is not initiated within 90 days of recording, the lien becomes null and void.The California statutory 90-day period for initiating a lien foreclosure action starts to run only after the mechanic’s lien is recorded. The foreclosure suit cannot precede the lien recording. If foreclosure is not initiated within 90 days of recording, the lien becomes null and void.
“GOOD FAITH” NO DEFENSE TO CONSULTANT’S EXAGGERATED LIEN
If a consultant’s lien included non-lienable items such as lost profit or other damages for breach of contract, the lien could be considered willfully exaggerated notwithstanding the consultant’s good faith belief it was owed the fee.
LICENSED INDIVIDUAL COULD CONTRACT UNDER FICTITIOUS BUSINESS NAME
A licensed individual could contract and maintain a lien under the fictitious business name of the individual’s sole proprietorship.
EXCAVATION INCIDENTAL TO CONSTRUCTION EVEN WITHOUT BUILDING
Excavation was incidental to construction, and therefore lienable, even though no buildings were erected. The excavation was performed pursuant to plans calling for the construction of buildings.
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