Mechanic Lien Enforcement Options
After Contractor Jim filed a Mechanics Lien on Hide and Seek Sam, Sam was still no where to be found, he ignored all the notices and stubbornly still refused to pay. Jim decided to wait it out for a couple months, and still, no word from Sneaky Sam. Once again, Jim turned to Google, and in the search bar wrote, “I have filed a mechanics Lien, and still no payment, what are my options?” Then appeared another list of muffled search results, so Jim patiently sifted through all jargon, until he discovered exactly what his options were. Jim was kind enough to document them down below:
Mechanics liens in California provide a way for contractors, subcontractors, and material suppliers to secure payment for work done or materials provided on a construction project. If payment is not received, they can enforce their lien rights through legal action. Here are some options to enforce a mechanics lien in California:
1. Filing a Lawsuit: The most common way to enforce a mechanics lien in California is by filing a lawsuit. The lien claimant can file a lawsuit against the property owner to foreclose on the lien and force the sale of the property to pay the debt owed.
2. Demand Letter: Before filing a lawsuit, the lien claimant can send a demand letter to the property owner requesting payment. This letter can include a warning that legal action will be taken if payment is not made.
3. Mediation: In some cases, mediation can be used to resolve disputes between the parties. A neutral third-party mediator can help the parties reach a settlement agreement and avoid the expense and time of a lawsuit.
4. Arbitration: Arbitration is a more formal process than mediation and involves a neutral third party who listens to both sides of the dispute and makes a decision. This can be a faster and less expensive option than going to court.
5. Bonded Stop Notice: A bonded stop notice can be used to stop the release of funds from a construction project until the mechanics lien is resolved. This involves posting a bond and sending notice to the construction lender, owner, and general contractor.
6. Litigation Funders: Some companies specialize in providing funding for litigation. These companies can provide the lien claimant with the money they need to pursue legal action and take a percentage of the recovery.
As for Jim, he wanted to make sure that Hide and Seek Sam would never do this to anyone else again, so he opted straight for the lawsuit. Jim did not even have to count to 10, with the law on his side, Hide and Seek Sam appeared. Under the judge’s gavel, Sneaky Sam Trembled as Judge Brown said “You’re ordered to pay the claimant within 30 days, failure to do so will immediately result in the foreclosure of your home, to recover the losses suffered by Mr. Contractor Jim”. Jim smiled with pride, as Sneaky Sam handed him over 50k in cash.