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CALPASC Webinar: Contract Council Webinar – Sept 10, 2019 Speakers: Maria Plumtree & Bruce Wick

CALPASC Webinar: Contract Council Webinar - Sept 10, 2019 Speakers: Maria Plumtree & Bruce Wick, CALPASC Director of Risk Management At this webinar you will learn:How to avoid being cited by CSLB continue reading

Construction Contracts Workshop, San Luis Obispo, 8-22-2019

Construction Contracts Workshop Join us for an informative construction contracts workshop at the Plumtree & Associates San Luis Obispo office. The confusing language of contracts made understandable; What must/should be included; why; continue reading

Mechanics Liens P&A SLO office 6-20-2019

Mechanics Liens P&A SLO office 6-20-2019 WARNING!!! The most minor mistakes could make your lien/stop notice unenforceable! Mechanics Lien and Stop Notice WorkshopCome Learn How To Get Paid!!! Preliminary Notices – Are you filling continue reading

Construction Contracts 101- SLO Exchange 6-19-2019

Construction Contracts 101- SLO Exchange 6-19-2019 Join us for an informative meeting at the San Luis Obispo County Builders Exchange, with Plumtree & Associates.  What you'll learn.The confusing language of contracts made continue reading

Plumtree & Associates

2 months ago

Plumtree & Associates

WARNING: California Appellate Court Confirms – Lien Early And Lose Your Lien Rights!!

As many California contractors know, one of the strongest remedies to secure non-payment for work performed is the constitutionally guaranteed right to record a mechanics lien on the work of improvement. One of the crucial factors in successfully enforcing a mechanics lien is ensuring that the mechanics lien was timely recorded. Most contractors, to avoid recording the mechanics lien too late, record their liens as soon as their scope of work on the project is deemed complete. However, as the recent court of appeals decision below suggests, this strategy may no longer be viable as the courts have determined that recording a mechanics lien too early may also void the contractor’s rights under the mechanics lien.

In Precision Framing Systems, Inc. v. Luzuriaga, decided September 3, 2019, the appellate court affirmed the trial court’s determination that pursuant to Civil Code Section 8414(a), a mechanics lien that was recorded before a contractor ceased all work related to the work of improvement, the mechanics lien would be considered premature, void, and unenforceable.

In summary, Precision was contracted to perform framing work, including the “supplying and installing” of the trusses on a construction project. After completing its work, Precision failed to receive full payment for its work, so Precision promptly filed a mechanics lien. However, before Precision recorded its mechanics lien, the city had issued several correction notices regarding the installed trusses. These correction notices remained outstanding when Precision completed its work as there was an ongoing dispute in determining the responsible party for performing the correctional work. A month after Precision recorded its mechanics lien, Precision returned to the project site and performed the repair work on the trusses.

Because Precision was aware of the correction notices which were substantially related to its scope of work before it recorded its mechanics lien, the Precision’s scope of work was not complete. The court found that Precision’s “cessation of work”, pursuant to the statute, was when Precision had completed the correctional work. The court noted that although Precision had ample opportunity to rerecord its mechanics lien after completing the correctional work, it failed to do so, causing its only recorded mechanics lien to be invalid.

The court’s decision in Precision is a stark reminder to all contractors that although the mechanics lien exists as a powerful legal instrument to secure payment, there are strict guidelines that must be followed. To avoid waiving their lien rights, contractors must take particular care when recording the mechanics lien, especially when there is correctional work that remains to be performed.

*Your rights will also be affected if you lien too late.

This article is intended for general information purposes only and should not be construed as legal advice or legal opinions on any specific facts or circumstances. Questions please contact please contact Maria Plumtree at mplumtree@plumtreelaw.com ... See MoreSee Less

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Plumtree & Associates

4 months ago

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11132 Winners Circle # 207,
Los Alamitos, CA 90720
Phone: 562-594-3911

Satellite Offices:
3450 Broad St Suite 101,
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