Category: Mechanic’s Liens and Stop Notices

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Contractor Beware When Working With Developers to Assure Mechanic’s Lien Rights

Interpreting Utah’s former mechanic’s lien statute, the Utah Court of Appeals has held that a contractor that contracted with and provided construction services for a developer could not maintain a valid mechanic’s lien on property owned by a third-party landowner. In Reeve & Associates, Inc. v. Tanner, 2015 UT App 166 (2015), the owners of … Continue Reading

Idaho Verifies That Priority Position Remains Relevant After Bond Posting

In a case of first impression in Idaho, the Supreme Court in American Bank v. Wadsworth Golf Construction Co. of Southwest, No. 39415 (Idaho Aug. 16, 2013) (slip op.), determined that priority of lien filings on a property remain subject to a lien priority analysis even after a statutory lien release bond is filed to … Continue Reading

A Valid Contract Limits the Amount of a Mechanic’s Lien, Even Against a Party with No Direct Contract with a Contractor

A California appellate court recently held that the value of an original construction contract is admissible as evidence to limit a contractor’s right to recovery under Civil Code section 3123(a), even by a property buyer that was not a party to the construction contract. Appel v. Los Angeles Superior Court (CA No. B244590, Mar. 11, 2013). The … Continue Reading

Nevada Lenders Beware! Mechanic’s Liens Not Easily Avoided

Following the market crash in 2008-09, the $2.8 billion Fontainebleau development in Las Vegas was halted with 70 percent of the construction completed. Naturally, numerous mechanic’s liens were filed by contractors, subcontractors, professionals and suppliers ("claimants"). In the bankruptcy proceeding, the lenders asserted novel and potentially legally destabilizing theories against the claimants’ rights: a.) the … Continue Reading

CA Lender’s Not Entitled to Lambert Rights Against Contractors Even If Loan Is In Default

The Third District Court of Appeal in Cal Sierra Construction, Inc. v. Comerica Bank (Cal. App., May 31, 2012, No. C060707) 2012 Cal. App. LEXIS 641 (Cal Sierra), determined that lenders were precluded from enforcing property owner rights though a motion to release the mechanic’s lien and stop notice.  The court distinguished the California Supreme … Continue Reading

Have You Updated Your Mechanic’s Lien Procedures in California?

Now that the holiday frenzy has wound down, many have overlooked the necessity of updating their mechanic’s lien procedures in California. Effective January 1, 2011, prevailing California law imposes new requirements and notice procedures for effective lien actions on mechanic’s lien claimants. These changes immediately affect the preparation, service, and recordation of mechanic’s lien claims. California Civil Code … Continue Reading
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