ARTICLE
XIV LABOR RELATIONS
§ 3 Mechanics Liens
CIVIL CODE
TITLE 14 LIEN
CHAPTER 8 DESIGN PROFESSIONALS LIENS
3081.1
Definition
3081.2 Lien on Real Property for Which Work of Improvement
is Planned to be Constructed
3081.3 Conditions to Lien; Preliminary Notice; Notice of Lien
3081.4 Expiration of Lien; Release
3081.5 Enforcement
3081.6 Mechanics Lien Not Affected
3081.7 Time for Recording
3081.8 Other Remedies Not Affected
3081.9 Priorities; Construction Loans
3081.10 Single Family Dwellings
TITLE 15 WORKS OF IMPROVEMENT
CHAPTER 1 GENERAL DEFINITIONS
3082 Chapter
Governs Construction of Title
3083 “Bonded Stop Notice”
3084 “Claim of Lien”
3085 “Claimant”
3086 “Completion”
3087 “Construction Lender”
3088 “Contract”
3089 “Laborer”
3090 “Materialman”
3092 “Notice of Cessation”
3093 “Notice of Completion”
3094 “Notice of Nonresponsibility”
3095 “Original Contractor”
3096 “Payment Bond”
3097 “Preliminary Twenty-Day Notice (Private Work)”
3097.1 Proof of Service of Preliminary Notice
3098 “Preliminary Twenty-Day Notice (Public Work)”
3099 “Public Entity”
3100 “Public Work”
3101 “Site”
3102 “Site Improvement”
3103 Elements of Stop Notice; Service
3104 “Subcontractor”
3105 “Subdivision”
3106 “Work of Improvement”
CHAPTER
2 MECHANICS LIENS
ARTICLE 1 APPLICATION OF CHAPTER
3109 Application
ARTICLE 2 WHO IS ENTITLED TO LIEN
3110 Person Who Have Lien Rights
3111 Fringe Benefit Trusts
3111.5 Written Statement from Fringe Benefit Trust to Subcontractor
3112 Persons Who Furnish Site Improvements Have Lien Rights
ARTICLE 3 CONDITIONS TO ENFORCING A
LIEN
3114 Preliminary Twenty-Day Notice
3115 Original Contractor: Sixty Days After Notice of Completion
3116 Claimant Other Than Original Contractor: Thirty Days
After Notice of Completion
3117 Completion of Separate Original Contract
3118 Willful Inclusion of Items not Furnished; Forfeiture
ARTICLE
4 AMOUNT OF LIEN
3123 Amount of Lien; Charges
3124 Services and Materials not Included in Original Contract
ARTICLE
5 PROPERTY SUBJECT TO LIEN
3128 Liens Attach to Land Including Space for Convenient Use
and Occupations
3129 Notice of Nonresponsibility Protects Against Liens Suffered
by Tenants
3130 Lien Against two or More Buildings should Designate Amount
Due on Each
3131 Residential Units Considered Separate Works of Improvement
ARTICLE
6 PRIORITIES
3134 Claim of Lien Takes Priority from Commencement of Work
of Improvement
3135 Separate Contract for Site Improvements (“Offsite
Improvements”)
3136 Optional Advances by Construction Lender
3137 Priority of Liens for Site Improvements Over Deed of
Trust Securing Construction Loan
3138 Payment Bond to Secure Priority of Trust Deed
3139 Payment Bond to Secure Priority of Trust Deed Over Liens
for Site Improvements
3140 Amount of Lien After Deducting Credits and Offsets
ARTICLE 7 ENFORCEMENT OF LIEN
3143 Release Bond
3144 Time for Filing Foreclosure Suit
3144.5 Notice of Recording Release Bond; Statute of Limitations
on Bond
3145 Notice of Agreement of Credit or Extension of the Lien;
Recording
3146 Notice of Pendency of Action
3147 Discretionary Two-Year Dismissal
3148 Effect of Dismissal or Judgment
3149 Joinder and Consolidation of Foreclosure Actions
3150 Recording Costs
3151 Deficiency Judgment
3152 Lien does not Affect the Right to Maintain a Personal
Action or Issuance of a Writ of Attachment
3153 Contractor Shall Defend Owner Against Mechanics Lien
Actions; Liability of Performance Bond Surety
3154 Petition for Decree to Release Lien
CHAPTER 3 STOP NOTICES FOR PRIVATE WORKS OF IMPROVEMENT
ARTICLE 1 APPLICATION OF CHAPTER
3156 Chapter does not Apply to Public Works
ARTICLE 2 WHO IS ENTITLED TO SERVE A STOP NOTICE AND BONDED
STOP NOTICE
3158 Claimants Other Than Original Contractor; Written Demand
for Stop Notice; Forfeiture of Mechanics Lien Right
3159 Stop Notice to Construction Lender; Payment Bond; Net
Amount of Stop Notice
ARTICLE 3 CONDITIONS TO VALID SERVICE OF STOP NOTICE AND BONDED
STOP NOTICE
3160 Preliminary Twenty-Day Notice; Time for Service of Stop
Notice
ARTICLE 4 EFFECT OF STOP NOTICE AND BONDED STOP NOTICE
3161 Duty of Owner to Withhold; Payment Bond
3162 Duty of Construction Lender to Withhold; Payment Bond
3163 Objection to Sufficiency of Sureties on Stop Notice Bond
ARTICLE
5 PRIORITIES
3166 Stop Notice Takes Priority Over Assignment of Construction
Loan Funds
3167 Pro Rata Distribution
3168 Willfully False Stop Notice; Forfeiture
ARTICLE
6 RELEASE OF STOP NOTICE OR BONDED STOP NOTICE
3171 Release Bond
ARTICLE
7
ENFORCEMENT OF RIGHTS ARISING FROM STOP NOTICE AND BONDED
STOP NOTICE
3172 Action to Enforce Stop Notice Claim: Commencement; Five-Day
Notice of Commencement
3173 Discretionary Two-Year Dismissal
3174 Effect of Dismissal or Judgment
3175 Joinder and Consolidation; Impleader
3176 Attorneys Fees to Prevailing Party
3176.5 Interest on Stop Notice Claim
CHAPTER 4 STOP NOTICE FOR PUBLIC WORK
ARTICLE 1 APPLICATION OF CHAPTER
3179 Chapter Applies Only to Public Work
ARTICLE 2 WHO IS ENTITLED TO SERVE A STOP NOTICE
3181 Authorized Claimants
ARTICLE 3 CONDITIONS TO SERVICE OF
STOP NOTICE
3183 Preliminary Twenty-Day Notice (Public Work)
3184 Time for Service of Stop Notice
3185 Notice of Completion; Acceptance of Completion; Public
Agency to Notify Stop Notice Claimants
3186 Duty to Withhold
3187 Payments to Original Contractor
ARTICLE
4 PRIORITIES
3190 Claims Paid Pro Rata
3191 Recovery from Payment Bond Surety
3192 False Stop Notice; Forfeiture
3193 Stop Notice Takes Priority Over Assignments and Garnishments
ARTICLE
5 RELEASE OF STOP NOTICE
3196 Release Bond
3197 Summary Adjudication of Stop Notice Claim
3198 Contractor’s Affidavit
3199 Service of Affidavit
3200 Counter-Affidavit
3201 Action for Declaratory Relief; Hearing in Fifteen Days
3202 Burden of Proof; Evidence
3203 Release Order
3204 Jury Trial
3205 Determination Not Res Judicata
ARTICLE 6 ENFORCEMENT OF RIGHTS ARISING
FROM STOP NOTICE
3210 Statute of Limitations; Commencement of Action
3211 Five-Day Notice of Commencement
3212 Discretionary Two-Year Dismissal
3213 Dismissal; Judgment
3214 Joinder; Consolidation; Impleader
CHAPTER 5 GENERAL PROVISIONS RELATING TO BONDS
ARTICLE 1 CONSTRUCTION OF AND TERMS
AND CONDITIONS OF BONDS
3225 No Exoneration or Release by Changes or Rescission
3226 Bonds Construed Against Surety; Conditions of Recovery
3227 Written Notice to Surety
CHAPTER 6 PAYMENT BOND FOR PRIVATE
WORKS
ARTICLE 1 PROVISION FOR AND EFFECT OF FILING CONTRACT AND
PAYMENT BOND
3235 Recording Payment Bond Before Work has Commenced; Restriction
of Recovery
3236 Limits to Owner’s Liability
3237 Acceptance by Lending Institution of Payment Bond
ARTICLE 2 CONDITIONS TO ACTION ON PAYMENT BOND
3239 Recording Payment Bond; Statute of Limitations
3240 Limitations
3242 Enforcement of Claim Upon Payment Bond (Private Work)
CHAPTER 7 PAYMENT BOND FOR PUBLIC WORKS
3247 Payment Bond Requirement
3248 Contents of Payment Bond; Amount
3249 Suit Against Surety; Six-Month Statute of Limitations
3250 Action on Payment Bond; Attorneys Fees
3251 Payments to Original Contractor
3252 Condition Precedent; Ninety-Day Preliminary Bond Notice
3253 Delivery of Notice to Surety and Bond Principal
CHAPTER
8 MISCELLANEOUS PROVISIONS
3258 Recording Documents Required by this Chapter
3259 Rules of Practice
3260 Retention Proceeds and Payments
3260.1 Prompt Payment of Progress Payments to Contractor;
Good Faith Dispute
3261 Mistakes or Errors in Claims of Lien
3262 Impairment of Claims of Lien; Forms of Release; Accord
and Satisfaction
3262.5 Prompt Payment of Progress Payments to Subcontractors;
Good Faith Disputes; Penalties; Attorneys Fees
3263 Prevention of Performance; Exoneration of Sureties
3264 No Equitable Rights Against Construction Funds; Exceptions
3265 Claims Requirements of Government Code Inapplicable to
Stop Notice Action
3266 Oil and Gas Lien Act; Streets and Highways Code
3267 Limitation of Claims Against Payment Bond
TITLE 16 GENERAL PROVISIONS
3268 Waiver
CALIFORNIA CONSTITUTION
ARTICLE XIV LABOR RELATIONS
§ 3 Mechanics Liens
Mechanics, persons furnishing materials, artisans, and laborers
of every class, shall have a lien upon the property upon which
they have bestowed labor or furnished material for the value
of such labor done and material furnished; and the Legislature
shall provide, by law, for the speedy and efficient enforcement
of such liens.
CIVIL CODE
TITLE 14 LIEN
CHAPTER 8 DESIGN PROFESSIONALS LIENS
3081.1 Definition
For purposes of this chapter, “design professional”
means any certificated architect, registered professional
engineer, or licensed land surveyor who furnishes services
pursuant to a written contract with a landowner for the design,
engineering, or planning of a work of improvement. Except
as otherwise expressly provided, the definition in this section
does not apply to, or limit or expand the meaning of, provisions
of law other than this chapter.
3081.2
Lien on Real Property for Which Work of Improvement is Planned
to be Constructed
A
design professional shall, from the date of recordation pursuant
to Section 3081.3, have a lien upon the real property for
which the work of improvement is planned to be constructed,
notwithstanding the absence of commencement of actual construction
of the planned work of improvement, if the landowner contracted
for the design professional’s services and is also the
owner of the real property at the time of recordation of the
lien. The lien of the design professional shall be for the
amount of the design professional’s fee for any services
rendered prior to commencement of the work of improvement
or the reasonable value of those services, whichever is less.
The amount of the lien shall be reduced by the amount of any
deposit or prior payments, as specified by a written contract
entered into by the design professional and by the landowner
or his or her agent. However, no lien shall arise pursuant
to this chapter, and a design professional may not record
a notice of lien pursuant to subdivision (c) of Section 3081.3,
unless a building permit or other governmental approval in
furtherance of the work of improvement has been obtained in
connection with or utilizing the services rendered by the
design professional.
3081.3
Conditions to Lien; Preliminary Notice; Notice of Lien
In order for the design professional to be entitled to a lien
pursuant to Section 3081.2, all of the following shall occur:
(a) The landowner defaults in any payment required pursuant
to the terms of the written contract or refuses to pay upon
the demand of the design professional made in accordance with
the written contract.
(b) Not less than 10 days prior to recordation pursuant to
subdivision (c), the design professional mails by first-class
registered or certified mail, postage prepaid, addressed to
the landowner, a written demand for payment specifying that
a default has occurred pursuant to the contract or agreement
and the amount of the default.
(c) The design professional records, in the office of the
county recorder in the county in which the real property or
some portion thereof is located, a notice of lien which specifies
that a lien is created in favor of the named design professional,
specifies the amount thereof, identifies the current owner
of record of the real property, provides a legal description
of the real property to be improved, and specifies the building
permit or other governmental approval for the work of improvement
required as a condition of recording the notice of lien by
Section 3081.2.
3081.4 Expiration of Lien; Release
(a) Upon recordation of the notice of lien pursuant to subdivision
(c) of Section 3081.3, a lien is created in favor of the named
design professional.
(b) The lien created pursuant to subdivision (a) shall automatically
expire and be null and void and of no further force or effect
on the occurrence of either of the following:
(1) The commencement of the work of improvement for which
the design professional furnished services at the request
of the landowner.
(2) The expiration of 90 days after recording the notice of
lien, unless the design professional files suit to enforce
the lien within 90 days of recordation.
(c) In the event the landowner partially or fully satisfies
the lien of the design professional, the design professional
shall execute and record a document which evidences a partial
or full satisfaction and release of the lien, as the case
may be.
3081.5
Enforcement
Any
design professionals’ lien perfected pursuant to this
chapter shall be enforced pursuant to the provisions contained
in Article 7 (commencing with Section 3143) of Chapter 2 of
Title 15.
3081.6
Mechanics Lien Not Affected
This
chapter does not affect the ability of a design professional
to obtain a mechanic’s lien pursuant to Title 15 (commencing
with Section 3082) of this part.
3081.7 Time for Recording
A
design professional shall record a notice of lien pursuant
to subdivision (c) of Section 3081.3 no later than 90 days
after the design professional knows or has reason to know
that the landowner is not commencing the work of improvement.
3081.8
Other Remedies Not Affected
The
lien of a design professional perfected pursuant to this chapter
shall not affect the ability of the design professional to
pursue other remedies.
3081.9
Priorities; Construction Loans
(a)
No lien created by this chapter shall affect or take priority
over the interest of record of a purchaser, lessee, or encumbrancer,
if the interest of the purchaser, lessee, or encumbrancer
in the real property was duly recorded before recordation
of the design professionals’ lien.
(b)
No lien created by this chapter shall affect or take priority
over an encumbrance of a construction lender which funds the
loan to commence the work of improvement for which the design
professional furnished services at the request of the landowner.
3081.10
Single Family Dwellings
The design professionals’ lien provided in this chapter
shall not apply to a work of improvement relating to a single-family
owner occupied residence where the construction costs are
less than one hundred thousand dollars ($100,000) in value.
TITLE 15 WORKS OF IMPROVEMENT
CHAPTER 1 GENERAL DEFINITIONS
3082
Chapter Governs Construction of Title
Unless
the context otherwise requires, the provisions in this chapter
govern the construction of this title.
3083
“Bonded Stop Notice”
“Bonded stop notice” means a stop notice, given
to any construction lender, accompanied by a bond with good
and sufficient sureties in a penal sum equal to 11/4 times
the amount of such claim conditioned that if the defendant
recovers judgment in an action brought on such verified claim
or on the lien filed by the claimant, the claimant will pay
all costs that may be awarded against the owner, original
contractor, construction lender, or any of them, and all damages
that such owner, original contractor, or construction lender
may sustain by reason of the equitable garnishment effected
by the claim or by reason of the lien, not exceeding the sum
specified in the bond. To be effective such bonded stop notice
shall be delivered to the manager or other responsible officer
or person at the office of the construction lender or must
be sent to such office by registered or certified mail. If
such notice is delivered or sent to any institution or organization
maintaining branch offices, it shall not be effective unless
delivered or sent to the office or branch administering or
holding such construction funds.
3084
“Claim of Lien”
(a)
“Claim of lien” means a written statement, signed
and verified by the claimant or by the claimant’s agent,
containing all of the following:
(1)
A statement of the claimant’s demand after deducting
all just credits and offsets.
(2)
The name of the owner or reputed owner, if known.
(3)
A general statement of the kind of labor, services, equipment,
or materials furnished by the claimant.
(4)
The name of the person by whom the claimant was employed or
to whom the claimant furnished the labor, services, equipment,
or materials.
(5)
A description of the site sufficient for identification.
(b)
A claim of lien in otherwise proper form, verified and containing
the information required by this section shall be accepted
by the recorder for recording and shall be deemed duly recorded
without acknowledgment.
3085
“Claimant”
“Claimant”
means any person entitled under this title to record a claim
of lien, to give a stop notice in connection with any work
of improvement, or to recover on any payment bond, or any
combination of the foregoing.
3086
“Completion”
“Completion” means, in the case of any work of
improvement other than a public work, actual completion of
the work of improvement. Any of the following shall be deemed
equivalent to a completion:
(a) The occupation or use of a work of improvement by the
owner, or his agent, accompanied by cessation of labor thereon.
(b) The acceptance by the owner, or his agent, of the work
of improvement.
(c) After the commencement of a work of improvement, a cessation
of labor thereon for a continuous period of 60 days, or a
cessation of labor thereon for a continuous period of 30 days
or more if the owner files for record a notice of cessation.
If
the work of improvement is subject to acceptance by any public
entity, the completion of such work of improvement shall be
deemed to be the date of such acceptance; provided, however,
that, except as to contracts awarded under the State Contract
Act, Chapter 3 (commencing with Section 14250), Part 5, Division
3, Title 2 of the Government Code, a cessation of labor on
any public work for a continuous period of 30 days shall be
a completion thereof.
3087 “Construction Lender”
“Construction lender” means any mortgagee or beneficiary
under a deed of trust lending funds with which the cost of
the work of improvement is, wholly or in part, to be defrayed,
or any assignee or successor in interest of either, or any
escrow holder or other party holding any funds furnished or
to be furnished by the owner or lender or any other person
as a fund from which to pay construction costs.
3088 “Contract”
“Contract” means an agreement between an owner
and any original contractor providing for the work of improvement
or any part thereof.
3089 “Laborer”
“Laborer” means any person who, acting as an employee,
performs labor upon or bestows skill or other necessary services
on any work of improvement.
3090 “Materialmen”
“Materialman” means any person who furnishes materials
or supplies to be used or consumed in any work of improvement.
3092
“Notice of Cessation”
“Notice of cessation” means a written notice,
signed and verified by the owner or his agent, containing
all of the following:
(a) The date on or about when the cessation of labor commenced.
(b) A statement that such cessation has continued until the
recording of the notice of cessation.
(c) The name and address of the owner.
(d) The nature of the interest or estate of the owner.
(e) A description of the site sufficient for identification,
containing the street address of the site, if any. If a sufficient
legal description of the site is given, the validity of the
notice shall not, however, be affected by the fact that the
street address is erroneous or is omitted.
(f) The name of the original contractor, if any, for the work
of improvement as a whole.
(g)
For the purpose of this section, “owner” means
the owner who causes a building, improvement, or structure,
to be constructed, altered, or repaired (or his successor
in interest at the date of a notice of cessation from labor
is filed for record) whether the interest or estate of such
owner be in fee, as vendee under a contract of purchase, as
lessee, or other interest or estate less than the fee. Where
such interest or estate is held by two or more persons as
joint tenants or tenants in common, any one or more of the
cotenants may be deemed to be the “owner” within
the meaning of this section. Any notice of cessation signed
by less than all of such cotenants shall recite the names
and addresses of all such cotenants.
The notice of cessation shall be recorded in the office of
the county recorder of the county in which the site is located
and shall be effective only if there has been a continuous
cessation of labor for at least 30 days prior to such recording.
3093 “Notice of Completion”
“Notice of completion” means a written notice,
signed and verified by the owner or his agent, containing
all of the following:
(a) The date of completion (other than a cessation of labor).
The recital of an erroneous date of completion shall not,
however, affect the validity of the notice if the true date
of completion is within 10 days preceding the date of recording
of such notice.
(b) The name and address of the owner.
(c) The nature of the interest or estate of the owner.
(d) A description of the site sufficient for identification,
containing the street address of the site, if any. If a sufficient
legal description of the site is given, the validity of the
notice shall not, however, be affected by the fact that the
street address recited is erroneous or that such street address
is omitted.
(e) The name of the original contractor, if any, or if the
notice is given only of completion of a contract for a particular
portion of such work of improvement, as provided in Section
3117, then the name of the original contractor under such
contract, and a general statement of the kind of work done
or materials furnished pursuant to such contract.
The notice of completion shall be recorded in the office of
the county recorder of the county in which the site is located,
within 10 days after such completion. A notice of completion
in otherwise proper form, verified and containing the information
required by this section shall be accepted by the recorder
for recording and shall be deemed duly recorded without acknowledgment.
If there is more than one owner, any notice of completion
signed by less than all of such co-owners shall recite the
names and addresses of all of such co-owners; and provided
further, that any notice of completion signed by a successor
in interest shall recite the names and addresses of his transferor
or transferors.
For the purpose of this section, owner is defined as set forth
in subdivision (g) of Section 3092.
3094
“Notice of Nonresponsibility”
“Notice of nonresponsibility” means a written
notice, signed and verified by a person owning or claiming
an interest in the site who has not caused the work of improvement
to be performed, or his agent, containing all of the following:
(a) A description of the site sufficient for identification.
(b) The name and nature of the title or interest of the person
giving the notice.
(c) The name of the purchaser under contract, if any, or lessee,
if known.
(d) A statement that the person giving the notice will not
be responsible for any claims arising from the work of improvement.
Within 10 days after the person claiming the benefits of nonresponsibility
has obtained knowledge of the work of improvement, the notice
provided for in this section shall be posted in some conspicuous
place on the site. Within the same 10-day period provided
for the posting of the notice, the notice shall be recorded
in the office of the county recorder of the county in which
the site or some part thereof is located.
3095 “Original Contractor”
“Original contractor” means any contractor who
has a direct contractual relationship with the owner.
3096
“Payment Bond”
“Payment bond” means a bond with good and sufficient
sureties that is conditioned for the payment in full of the
claims of all claimants and that also by its terms is made
to inure to the benefit of all claimants so as to give these
persons a right of action to recover upon this bond in any
suit brought to foreclose the liens provided for in this title
or in a separate suit brought on the bond. An owner, original
contractor, or a subcontractor may be the principal upon any
payment bond.
3097
“Preliminary Twenty-Day Notice (Private Work)”
“Preliminary 20-day notice (private work)” means
a written notice from a claimant that is given prior to the
recording of a mechanic’s lien, prior to the filing
of a stop notice, and prior to asserting a claim against a
payment bond, and is required to be given under the following
circumstances:
(a) Except one under direct contract with the owner or one
performing actual labor for wages, or an express trust fund
described in Section 3111, every person who furnishes labor,
service, equipment, or material for which a lien or payment
bond otherwise can be claimed under this title, or for which
a notice to withhold can otherwise be given under this title,
shall, as a necessary prerequisite to the validity of any
claim of lien, payment bond, and of a notice to withhold,
cause to be given to the owner or reputed owner, to the original
contractor, or reputed contractor, and to the construction
lender, if any, or to the reputed construction lender, if
any, a written preliminary notice as prescribed by this section.
(b) Except the contractor, or one performing actual labor
for wages, or an express trust fund described in Section 3111,
all persons who have a direct contract with the owner and
who furnish labor, service, equipment, or material for which
a lien or payment bond otherwise can be claimed under this
title, or for which a notice to withhold can otherwise be
given under this title, shall, as a necessary prerequisite
to the validity of any claim of lien, claim on a payment bond,
and of a notice to withhold, cause to be given to the construction
lender, if any, or to the reputed construction lender, if
any, a written preliminary notice as prescribed by this section.
(c) The preliminary notice referred to in subdivisions (a)
and (b) shall contain the following information:
(1) A general description of the labor, service, equipment,
or materials furnished, or to be furnished, and an estimate
of the total price thereof.
(2) The name and address of the person furnishing that labor,
service, equipment, or materials.
(3) The name of the person who contracted for purchase of
that labor, service, equipment, or materials.
(4) A description of the jobsite sufficient for identification.
(5) The following statement in boldface type:
NOTICE TO PROPERTY OWNER
If bills are not paid in full for the labor, services, equipment,
or materials furnished or to be furnished, a mechanic’s
lien leading to the loss, through court foreclosure proceedings,
of all or part of your property being so improved may be placed
against the property even though you have paid your contractor
in full. You may wish to protect yourself against this consequence
by (1) requiring your contractor to furnish a signed release
by the person or firm giving you this notice before making
payment to your contractor or (2) any other method or device
that is appropriate under the circumstances.
(6) If the notice is given by a subcontractor who is required
pursuant to a collective bargaining agreement to pay supplemental
fringe benefits into an express trust fund described in Section
3111, the notice shall also contain the identity and address
of the trust fund or funds.
If an invoice for materials contains the information required
by this section, a copy of the invoice, transmitted in the
manner prescribed by this section shall be sufficient notice.
A certificated architect, registered engineer, or licensed
land surveyor who has furnished services for the design of
the work of improvement and who gives a preliminary notice
as provided in this section not later than 20 days after the
work of improvement has commenced shall be deemed to have
complied with subdivisions (a) and (b) with respect to architectural,
engineering, or surveying services furnished, or to be furnished.
(d) The preliminary notice referred to in subdivisions (a)
and (b) shall be given not later than 20 days after the claimant
has first furnished labor, service, equipment, or materials
to the jobsite. If labor, service, equipment, or materials
have been furnished to a jobsite by a claimant who did not
give a preliminary notice, that claimant shall not be precluded
from giving a preliminary notice at any time thereafter. The
claimant shall, however, be entitled to record a lien, file
a stop notice, and assert a claim against a payment bond only
for labor, service, equipment, or material furnished within
20 days prior to the service of the preliminary notice, and
at any time thereafter.
(e) Any agreement made or entered into by an owner, whereby
the owner agrees to waive the rights or privileges conferred
upon the owner by this section shall be void and of no effect.
(f) The notice required under this section may be served as
follows:
(1) If the person to be notified resides in this state, by
delivering the notice personally, or by leaving it at his
or her address of residence or place of business with some
person in charge, or by first-class registered or certified
mail, postage prepaid, addressed to the person to whom notice
is to be given at his or her residence or place of business
address or at the address shown by the building permit on
file with the authority issuing a building permit for the
work, or at an address recorded pursuant to subdivision (j).
(2) If the person to be notified does not reside in this state,
by any method enumerated in paragraph (1) of this subdivision.
If the person cannot be served by any of these methods, then
notice may be given by first-class certified or registered
mail, addressed to the construction lender or to the original
contractor.
(3) When service is made by first-class certified or registered
mail, service is complete at the time of the deposit of that
registered or certified mail.
(g) A person required by this section to give notice to the
owner, to an original contractor, and to a person to whom
a notice to withhold may be given, need give only one notice
to the owner, to the original contractor, and to the person
to whom a notice to withhold may be given with respect to
all materials, service, labor, or equipment he or she furnishes
for a work of improvement, that means the entire structure
or scheme of improvements as a whole, unless the same is furnished
under contracts with more than one subcontractor, in which
event, the notice requirements shall be met with respect to
materials, services, labor, or equipment furnished to each
contractor.
If a notice contains a general description required by subdivision
(a) or (b) of the materials, services, labor, or equipment
furnished to the date of notice, it is not defective because,
after that date, the person giving notice furnishes materials,
services, labor, or equipment not within the scope of this
general description.
(h) Where the contract price to be paid to any subcontractor
on a particular work of improvement exceeds four hundred dollars
($400), the failure of that contractor, licensed under Chapter
9 (commencing with Section 7000) of Division 3 of the Business
and Professions Code, to give the notice provided for in this
section, constitutes grounds for disciplinary action by the
Registrar of Contractors.
Where
the notice is required to contain the information set forth
in paragraph (6) of subdivision (c), a failure to give the
notice, including that information, that results in the filing
of a lien, claim on a payment bond, or the delivery of a stop
notice by the express trust fund to which the obligation is
owing constitutes grounds for disciplinary action by the Registrar
of Contractors against the subcontractor if the amount due
the trust fund is not paid.
(i) Every city, county, city and county, or other governmental
authority issuing building permits shall, in its application
form for a building permit, provide space and a designation
for the applicant to enter the name, branch, designation,
if any, and address of the construction lender and shall keep
the information on file open for public inspection during
the regular business hours of the authority.
If there is no known construction lender, that fact shall
be noted in the designated space. Any failure to indicate
the name and address of the construction lender on the application,
however, shall not relieve any person from the obligation
to give to the construction lender the notice required by
this section.
(j) A mortgage, deed of trust, or other instrument securing
a loan, any of the proceeds of which may be used for the purpose
of constructing improvements on real property, shall bear
the designation “Construction Trust Deed” prominently
on its face and shall state all of the following: (1) the
name and address of the lender, and the name and address of
the owner of the real property described in the instrument,
and (2) a legal description of the real property which secures
the loan and, if known, the street address of the property.
The failure to be so designated or to state any of the information
required by this subdivision shall not affect the validity
of the mortgage, deed of trust, or other instrument.
Failure to provide this information on this instrument when
recorded shall not relieve persons required to give preliminary
notice under this section from that duty.
The county recorder of the county in which the instrument
is recorded shall indicate in the general index of the official
records of the county that the instrument secures a construction
loan.
(k) Every contractor and subcontractor who is required pursuant
to a collective bargaining agreement to pay supplementary
fringe benefits into an express trust fund described in Section
3111, and who has failed to do so shall cause to be given
to the trust fund and to the construction lender, if any,
or to the reputed construction lender, if any, not later than
the date the payment due to the trust fund became delinquent,
a written notice containing all of the following:
(1) The name of the owner and the contractor.
(2) A description of the jobsite sufficient for identification.
(3) The identity and address of the express trust fund.
(4) The total number of straight time and overtime hours on
each job, payment for which the contractor or subcontractor
is delinquent to the express trust.
(5) The amount then past due and owing.
Failure to give this notice shall constitute grounds for disciplinary
action by the Registrar of Contractors.
(l) Every written contract entered into between a property
owner and an original contractor shall provide space for the
owner to enter his or her name and address of residence; and
place of business if any. The original contractor shall make
available the name and address of residence of the owner to
any person seeking to serve the notice specified in subdivision
(c).
(m) Every written contract entered into between a property
owner and an original contractor, except home improvement
contracts and swimming pool contracts subject to Article 10
(commencing with Section 7150) of Chapter 9 of Division 3
of the Business and Professions Code, shall provide space
for the owner to enter the name and address of the construction
lender or lenders. The original contractor shall make available
the name and address of the construction lender or lenders
to any person seeking to serve the notice specified in subdivision
(c). Every contract entered into between an original contractor
and subcontractor, and between subcontractors, shall provide
a space for the name and address of the owner, original contractor,
and any construction lender.
(n) Where one or more construction loans are obtained after
commencement of construction, the property owner shall provide
the name and address of the construction lender or lenders
to each person who has given the property owner the notice
specified in subdivision (c).
(o) (1) Each person who has served a preliminary 20-day notice
pursuant to subdivision (f) may file the preliminary 20-day
notice with the county recorder in the county in which any
portion of the property is located. A preliminary 20-day notice
filed pursuant to this section shall contain all of the following:
(A) The name and address of the person furnishing the labor,
service, equipment, or materials.
(B) The name of the person who contracted for purchase of
the labor, service, equipment, or materials.
(C) The common street address of the jobsite.
(2) Upon the acceptance for recording of a notice of completion
or notice of cessation the county recorder shall mail to those
persons who have filed a preliminary 20-day notice, notification
that a notice of completion or notice of cessation has been
recorded on the property, and shall affix the date that the
notice of completion or notice of cessation was recorded with
the county recorder.
(3) The failure of the county recorder to mail the notification
to the person who filed a preliminary 20-day notice, or the
failure of those persons to receive the notification or to
receive complete notification, shall not affect the period
within which a claim of lien is required to be recorded. However,
the county recorder shall make a good faith effort to mail
notification to those persons who have filed the preliminary
20-day notice under this section and to do so within five
days after the recording of a notice of completion or notice
of cessation.
(4) This new function of the county recorder shall not become
operative until July 1, 1988. The county recorder may cause
to be destroyed all documents filed pursuant to this section,
two years after the date of filing.
(5) The preliminary 20-day notice which a person may file
pursuant to this subdivision is for the limited purpose of
facilitating the mailing of notice by the county recorder
of recorded notices of completion and notices of cessation.
The notice which is filed is not a recordable document and
shall not be entered into those official records of the county
which by law impart constructive notice. Notwithstanding any
other provision of law, the index maintained by the recorder
of filed preliminary 20-day notices shall be separate and
distinct from those indexes maintained by the county recorder
of those official records of the county which by law impart
constructive notice. The filing of a preliminary 20-day notice
with the county recorder does not give rise to any actual
or constructive notice with respect to any party of the existence
or contents of a filed preliminary 20-day notice nor to any
duty of inquiry on the part of any party as to the existence
or contents of that notice.
(p) The change made to the statement described in subdivision
(c) by Chapter 974 of the Statutes of 1994 shall have no effect
upon the validity of any notice that otherwise meets the requirements
of this section. The failure to provide, pursuant to Chapter
974 of the Statutes of 1994, a written preliminary notice
to a subcontractor with whom the claimant has contracted shall
not affect the validity of any preliminary notice provided
pursuant to this section.
3097.1 Proof of Service of Preliminary
Notice
Proof that the preliminary 20-day notice required by Section
3097 was served in accordance with subdivision (f) of Section
3097 shall be made as follows:
(a) If served by mail, by the proof of service affidavit described
in subdivision (c) of this section accompanied either by the
return receipt of certified or registered mail, or by a photocopy
of the record of delivery and receipt maintained by the post
office, showing the date of delivery and to whom delivered,
or, in the event of nondelivery, by the returned envelope
itself.
(b) If served by personally delivering the notice to the person
to be notified, or by leaving it at his address or place of
business with some person in charge, by the proof of service
affidavit described in subdivision (c).
(c) A “proof of service affidavit” is an affidavit
of the person making the service, showing the time, place
and manner of service and facts showing that such service
was made in accordance with Section 3097. Such affidavit shall
show the name and address of the person upon whom a copy of
the preliminary 20-day notice was served, and, if appropriate,
the title or capacity in which he was served.
3098
“Preliminary Twenty-Day Notice (Public Work)”
“Preliminary 20-day notice (public work)” means
a written notice from a claimant that was given prior to the
assertion of a claim against a payment bond, or the filing
of a stop notice on public work, and is required to be given
under the following circumstances:
(a) In any case in which the law of this state affords a right
to a person furnishing labor or materials for a public work
who has not been paid therefor to assert a claim against a
payment bond, or to file a stop notice with the public agency
concerned, and thereby cause the withholding of payment from
the contractor for the public work, any such person having
no direct contractual relationship with the contractor, other
than a person who performed actual labor for wages or an express
trust fund described in Section 3111, may file the preliminary
notice, but no payment shall be withheld from the contractor
pursuant to that notice unless the person has caused written
notice to be given to the contractor, and the public agency
concerned, not later than 20 days after the claimant has first
furnished labor, services, equipment, or materials to the
jobsite, stating with substantial accuracy a general description
of labor, service, equipment, or materials furnished or to
be furnished, and the name of the party to whom the same was
furnished. This notice shall be served by mailing the same
by first-class mail, registered mail, or certified mail, postage
prepaid, in an envelope addressed to the contractor at any
place the contractor maintains an office or conducts business,
or his or her residence, or by personal service. In case of
any public works constructed by the Department of Public Works
or the Department of General Services of the state, such notice
shall be served by mailing in the same manner as above, addressed
to the office of the disbursing officer of the department
constructing the work, or by personal service upon the officer.
When service is by registered or certified mail, service is
complete at the time of the deposit of the registered or certified
mail.
(b) Where the contract price to be paid to any subcontractor
on a particular work of improvement exceeds four hundred dollars
($400), the failure of that contractor, licensed under Chapter
9, (commencing with Section 7000) of Division 3 of the Business
and Professions Code, to give the notice provided for in this
section, constitutes grounds for disciplinary action by the
Registrar of Contractors.
(c) The notice requirements of this section shall not apply
to an express trust fund described in Section 3111.
(d) If labor, service, equipment, or materials have been furnished
to a jobsite by a claimant who did not give a preliminary
notice pursuant to subdivision (a), that claimant shall not
be precluded from giving a preliminary notice at any time
thereafter. The claimant shall, however, be entitled to assert
a claim against a payment bond and file a stop notice only
for labor, service, equipment, or material furnished within
20 days prior to the service of the preliminary notice, and
at any time thereafter.
(e) The failure to provide, pursuant to Chapter 974 of the
Statutes of 1994, a written preliminary notice to a subcontractor
with whom the claimant has contracted shall not affect the
validity of any preliminary notice provided pursuant to this
section.
3099 “Public Entity”
“Public entity” means the state, Regents of the
University of California, a county, city, district, public
authority, public agency, and any other political subdivision
or public corporation in the state.
3100 “Public Work”
“Public work” means any work of improvement contracted
for by a public entity.
3101 “Site”
“Site” means the real property upon which the
work of improvement is being constructed or performed.
3102 “Site Improvement”
“Site improvement” means the demolishing or removing
of improvements, trees, or other vegetation located thereon,
or drilling test holes or the grading, filling, or otherwise
improving of any lot or tract of land or the street, highway,
or sidewalk in front of or adjoining any lot or tract of land,
or constructing or installing sewers or other public utilities
therein, or constructing any areas, vaults, cellars, or rooms
under said sidewalks or making any improvements thereon.
3103
Elements of Stop Notice; Service
“Stop
notice” means a written notice, signed and verified
by the claimant or his or her agent, stating in general terms
all of the following:
(a)
The kind of labor, services, equipment, or materials furnished
or agreed to be furnished by such claimant.
(b)
The name of the person to or for whom the same was done or
furnished.
(c)
The amount in value, as near as may be, of that already done
or furnished and of the whole agreed to be done or furnished.
(d)
The name and address of the claimant.
The
notice, in the case of any work of improvement other than
a public work, shall be delivered to the owner personally
or left at his or her residence or place of business with
some person in charge, or delivered to his or her architect,
if any, if the notice is served upon a construction lender,
holding construction funds and maintaining branch offices,
it shall not be effective as against the construction lender
unless given to or served upon the manager or other responsible
officer or person at the office or branch thereof administering
or holding the construction funds. The notice, in the case
of any public work for the state, shall be filed with the
director of the department which let the contract and, in
the case of any other public work, shall be filed in the office
of the controller, auditor, or other public disbursing officer
whose duty it is to make payments under the provisions of
the contract, or with the commissioners, managers, trustees,
officers, board of supervisors, board of trustees, common
council, or other body by whom the contract was awarded. No
stop notice shall be invalid by reason of any defect in form
if it is sufficient to substantially inform the owner of the
information required.
Any
stop notice may be served by registered or certified mail
with the same effect as by personal service.
3104 “Subcontractor”
“Subcontractor” means any contractor who has no
direct contractual relationship with the owner.
3105
“Subdivision”
“Subdivision”
means a work of improvement consisting of two or more separate
residential units or two or more buildings, mining claims,
or other improvements owned or reputed to be owned by the
same person or on which the claimant has been employed by
the same person. A separate residential unit means one residential
structure, together with any garage or other improvements
appurtenant thereto.
3106
“Work of Improvement”
“Work
of improvement” includes but is not restricted to the
construction, alteration, addition to, or repair, in whole
or in part, of any building, wharf, bridge, ditch, flume,
aqueduct, well, tunnel, fence, machinery, railroad, or road,
the seeding, sodding, or planting of any lot or tract of land
for landscaping purposes, the filling, leveling, or grading
of any lot or tract of land, the demolition of buildings,
and the removal of buildings. Except as otherwise provided
in this title, “work of improvement” means the
entire structure or scheme of improvement as a whole.
CHAPTER 2 MECHANICS LIENS
ARTICLE 1 APPLICATION OF CHAPTER
3109 Application
This chapter does not apply to any public work.
ARTICLE
2 WHO IS ENTITLED TO LIEN
3110
Persons Who Have Lien Rights
Mechanics, materialmen, contractors, subcontractors, lessors
of equipment, artisans, architects, registered engineers,
licensed land surveyors, machinists, builders, teamsters,
and draymen, and all persons and laborers of every class performing
labor upon or bestowing skill or other necessary services
on, or furnishing materials or leasing equipment to be used
or consumed in or furnishing appliances, teams, or power contributing
to a work of improvement shall have a lien upon the property
upon which they have bestowed labor or furnished materials
or appliances or leased equipment for the value of such labor
done or materials furnished and for the value of the use of
such appliances, equipment, teams, or power whether done or
furnished at the instance of the owner or of any person acting
by his authority or under him as contractor or otherwise.
For the purposes of this chapter, every contractor, subcontractor,
sub-subcontractor, architect, builder, or other person having
charge of a work of improvement or portion thereof shall be
held to be the agent of the owner.
3111
Fringe Benefit Trusts
For the purposes of this chapter, an express trust fund established
pursuant to a collective bargaining agreement to which payments
are required to be made on account of fringe benefits supplemental
to a wage agreement for the benefit of a claimant on particular
real property shall have a lien on such property in the amount
of the supplemental fringe benefit payments owing to it pursuant
to the collective bargaining agreement.
3111.5
Written Statement from Fringe Benefit Trust to Subcontractor
(a)
Every trust fund as described in Section 3111 shall, upon
written demand by a subcontractor, give to the subcontractor
in person, or by first-class mail, addressed to the address
of the subcontractor as stated on the demand, within five
working days of the receipt of the demand, a written statement
which shall contain the following information:
(1) The name and address of the subcontractor.
(2) A list of those months in the 12 months preceding the
demand, commencing with the last month of record in possession
of the trust fund, for which the subcontractor has paid supplemental
fringe benefit payments.
(3) The facts, if such be the case, that the trust fund has
no information or belief that the subcontractor is further
indebted to the trust fund for those months.
(b) The statement of the trust fund provided for in subdivision
(a) above shall be, without prejudice to the trust fund, sufficient
to satisfy any creditors of the subcontractor to whom it is
given that the subcontractor is not indebted to the trust
fund for the months so stated, without further release from
the trust fund.
3112 Persons Who Furnish Site Improvements
Have Lien Rights
Any claimant who, at the instance or request of the owner
(or any other person acting by his authority or under him,
as contractor or otherwise) of any lot or tract of land, has
made any site improvement has a lien upon such lot or tract
of land for work done or materials furnished.
ARTICLE 3 CONDITIONS TO ENFORCING A
LIEN
3114 Preliminary Twenty-Day Notice
A claimant shall be entitled to enforce a lien only if he
has given the preliminary 20-day notice (private work) in
accordance with the provisions of Section 3097, if required
by that section, and has made proof of service in accordance
with the provisions of Section 3097.1.
3115 Original Contractor: Sixty Days
After Notice of Completion
Each original contractor, in order to enforce a lien, must
record his claim of lien after he completes his contract and
before the expiration of (a) 90 days after the completion
of the work of improvement as defined in Section 3106 if no
notice of completion or notice of cessation has been recorded,
or (b) 60 days after recordation of a notice of completion
or notice of cessation.
3116 Claimant Other Than Original Contractor:
Thirty Days After Notice of Completion
Each claimant other than an original contractor, in order
to enforce a lien, must record his claim of lien after he
has ceased furnishing labor, services, equipment, or materials,
and before the expiration of (a) 90 days after completion
of the work of improvement if no notice of completion or cessation
has been recorded, or (b) 30 days after recordation of a notice
of completion or notice of cessation.
3117 Completion of Separate Original
Contract
Where the work of improvement is not made pursuant to one
original contract for the work of improvement but is made
in whole or in part pursuant to two or more original contracts,
each covering a particular portion of the work of improvement,
the owner may, within 10 days after completion of any such
contract for a particular portion of the work of improvement,
record a notice of completion. If such notice of completion
be recorded, notwithstanding the provisions of Sections 3115
and 3116, the original contractor under the contract covered
by such notice must, within 60 days after recording of such
notice, and any claimant under such contract other than the
original contractor must, within 30 days after the recording
of such notice of completion, record his claim of lien. If
such notice is not recorded, then the period for recording
claims of lien shall be as provided for in Sections 3115 and
3116.
3118 Willful Inclusion of Items not Furnished; Forfeiture
Any person who shall willfully include in his claim of lien
labor, services, equipment, or materials not furnished for
the property described in such claim shall thereby forfeit
his lien.
ARTICLE 4 AMOUNT OF LIEN
3123 Amount of Lien; Charge
(a) The liens provided for in this chapter shall be direct
liens, and shall be for the reasonable value of the labor,
services, equipment, or materials furnished or for the price
agreed upon by the claimant and the person with whom he or
she contracted, whichever is less. The lien shall not be limited
in amount by the price stated in the contract as defined in
Section 3088, except as provided in Sections 3235 and 3236
and in subdivision (c) of this section.
(b) This section does not preclude the claimant from including
in the lien any amount due for labor, services, equipment,
or materials furnished based on a written modification of
the contract or as a result of the rescission, abandonment,
or breach of the contract. However, in the event of rescission,
abandonment, or breach of the contract, the amount of the
lien may not exceed the reasonable value of the labor, services,
equipment, and materials furnished by the claimant.
(c) The owner shall notify the prime contractor and construction
lenders of any changes in the contract if the change has the
effect of increasing the price stated in the contract by 5
percent or more.
3124 Services and Materials not Included
in Original Contract
In any case where the claimant was employed by a contractor
or subcontractor, his claim of lien shall not extend to any
labor, services, equipment, or materials not included in the
contract between the owner and original contractor or any
modification thereof, if the claimant had actual knowledge
or constructive notice of the contract as defined in Section
3088 or any such modification before he furnished such labor,
service, equipment, or materials. The filing of a contract
for a work of improvement or of a modification of such contract
with the county recorder of the county where the property
is situated, before the commencement of work, shall be equivalent
to the giving of actual notice of the provisions thereof by
the owner to all persons performing work or furnishing materials
thereunder.
ARTICLE
5 PROPERTY SUBJECT TO LIEN
3128 Liens Attach to Land Including Space for Convenient Use
and Occupation
The liens provided for in this chapter shall attach to the
work of improvement and the land on which it is situated together
with a convenient space about the same or so much as may be
required for the convenient use and occupation thereof, if
at the commencement of the work or of the furnishing of the
materials for the same, the land belonged to the person who
caused such work of improvement to be constructed, but if
such person owned less than a fee simple estate in such land
then only his interest therein is subject to such lien, except
as provided in Section 3129.
3129 Notice of Nonresponsibility Protects Against Liens Suffered
by Tenants
Every work of improvement constructed upon any land and all
work or labor performed or materials furnished in connection
therewith with the knowledge of the owner or of any person
having or claiming any estate therein shall be held to have
been constructed, performed, or furnished at the instance
of such owner or person having or claiming any estate therein
and such interest shall be subject to any lien recorded under
this chapter unless such owner or person having or claiming
any estate therein shall give a notice of nonresponsibility
pursuant to Section 3094.
3130 Lien Against Two or More Buildings should Designate Amount
Due on Each
In every case in which one claim is filed against two or more
buildings or other works of improvement owned or reputed to
be owned by the same person or on which the claimant has been
employed by the same person to do his work or furnish his
materials, whether such works of improvement are owned by
one or more owners, the person filing such claim must at the
same time designate the amount due to him on each of such
works of improvement; otherwise the lien of such claim is
postponed to other liens. If such claimant has been employed
to furnish labor or materials under a contract providing for
a lump sum to be paid to him for his work or materials on
such works of improvement as a whole, and such contract does
not segregate the amount due for the work done and materials
furnished on such works of improvement separately, then such
claimant, for the purposes of this section, may estimate an
equitable distribution of the sum due him over all of such
works of improvement based upon the proportionate amount of
work done or materials furnished upon such respective works
of improvement. The lien of such claimant does not extend
beyond the amount designated as against other creditors having
liens, by judgment, mortgage, or otherwise, upon either such
works of improvement or upon the land upon which the same
are situated.
For all purposes of this section, if there is a single structure
on more than one parcel of land owned by one or more different
owners, it shall not be the duty of the claimant to segregate
the proportion of material or labor entering into the structure
on any one of such parcels; but upon the trial thereof the
court may, when it deems it equitable so to do, distribute
the lien equitably as between the several parcels involved.
3131
Residential Units Considered Separate Works of Improvement
If a work of improvement consists in the construction of two
or more separate residential units, each such unit shall be
considered a separate “work of improvement,” and
the time for filing claims of lien against each such residential
unit shall commence to run upon the completion of each such
residential unit. A separate residential unit means one residential
structure, including a residential structure containing multiple
condominium units, together with any common area, or any garage
or other improvements appurtenant thereto. The provisions
of this qualification shall not impair any rights conferred
under the provisions of Section 3112 and 3130. Materials delivered
to or upon any portion of such entire work of improvement
or furnished to be used in such entire work of improvement
and ultimately used or consumed in one of such separate residential
units shall, for all the purposes of this title, be deemed
to have been furnished to be used or consumed in the separate
residential unit in which the same shall have been actually
used or consumed; provided, however, that if the claimant
is unable to segregate the amounts used on or consumed in
such separate units, he shall be entitled to all the benefits
of Section 3130.
For purposes of this section and notwithstanding any other
provision of this chapter, the completion of a residential
structure containing multiple condominium units, together
with any common area, or any garage or other improvements
appurtenant thereto, and only such residential structure,
shall not operate in any manner to impair the rights of a
lien claimant entitled to a lien pursuant to Section 3111,
if the claim of lien is recorded in the manner prescribed
by this chapter within 120 days of the completion of the residential
structure.
ARTICLE 6 PRIORITIES
3134 Claim of Lien Takes Priority from
Commencement of Work of Improvement
The liens provided for in this chapter (other than with respect
to site improvements) are, subject to the exception in Section
3138, preferred to any lien, mortgage, deed of trust, or other
encumbrance upon the work of improvement and the site, which
attaches subsequent to the commencement of the work of improvement,
and also to any lien, mortgage, deed of trust, or other encumbrance
of which the claimant had no notice and which was unrecorded
at the time of commencement of the work of improvement.
3135
Separate Contract for Site Improvements (“Offsite Improvements”)
If any site improvement is provided for in a separate contract
from any contract with respect to the erection of residential
units or other structures, then the site improvement shall
be considered a separate work of improvement and the commencement
thereof shall not constitute a commencement of the work of
improvement consisting of the erection of any residential
unit or other structure.
3136
Optional Advances by Construction Lender
A mortgage or deed of trust which would be prior to the liens
provided for in this chapter to the extent of obligatory advances
made thereunder in accordance with the commitment of the lender
shall also be prior to the liens provided for in this chapter
as to any other advances, secured by such mortgage or deed
of trust, which are used in payment of any claim of lien which
is recorded at the date or dates of such other advances and
thereafter in payment of costs of the work of improvement.
Such priority shall not, however, exceed the original obligatory
commitment of the lender as shown in such mortgage or deed
of trust.
3137 Priority of Liens for Site Improvements
over Deed of Trust Securing Construction Loan
The liens provided for in Section 3112 with respect to site
improvements are, subject to the exception in Section 3139,
preferred to (a) any mortgage, deed of trust, or other encumbrance
which attaches subsequent to the commencement of the site
improvement work; and (b) any mortgage, deed of trust, or
other encumbrance of which the claimant had no notice and
which was unrecorded at the time of the commencement of such
site improvement; and (c) any mortgage, deed of trust, or
other encumbrance recorded before the commencement of the
site improvement work which was given for the sole or primary
purpose of financing such site improvements, unless the loan
proceeds are, in good faith, placed in the control of the
lender under a binding agreement with the borrower to the
effect that such proceeds are to be applied to the payment
of claims of claimants and that no portion of such proceeds
will be paid to the borrower in the absence of satisfactory
evidence that all such claims have been paid or that the time
for recording claims of liens has expired and no such claims
have been recorded.
3138 Payment Bond to Secure Priority
of Trust Deed
If the holder of any mortgage or deed of trust which is subordinate
pursuant to Section 3134 to any lien, shall procure a payment
bond as defined in Section 3096 in an amount not less than
75 percent of the principal amount of such mortgage or deed
of trust, which bond refers to such mortgage or deed of trust,
and shall record such payment bond in the office of the county
recorder in the county where the site is located, then such
mortgage or deed of trust shall be preferred to all liens
for labor, services, equipment, or materials furnished after
such recording.
3139 Payment Bond to Secure Priority
of Trust Deed over Liens for Site Improvements
If the owner of the land or holder of any mortgage or deed
of trust, which is subordinate pursuant to Section 3137 to
any lien, shall procure a payment bond in an amount not less
than 50 percent of the principal amount of such mortgage or
deed of trust and shall record such payment bond in the office
of the county recorder in the county where the site is located
before completion of the work of improvement, then such mortgage
or deed of trust shall be preferred to all such liens provided
in Section 3112.
3140 Amount of Lien After Deducting
Credits and Offsets
Any original contractor or subcontractor shall be entitled
to recover, upon a claim of lien recorded by him, only such
amount as may be due him according to the terms of his contract
after deducting all claims of other claimants for labor, services,
equipment, or materials furnished and embraced within his
contract.
ARTICLE 7 ENFORCEMENT OF LIEN
3143 Release Bond
If
the owner of property, or the owner of any interest therein,
sought to be charged with a claim of lien, or any original
contractor or subcontractor disputes the correctness or validity
of any claim of lien, he may record in the office of the county
recorder in which such claim of lien was recorded, either
before or after the commencement of an action to enforce such
claim of lien, a bond executed by a corporation authorized
to issue surety bonds in the State of California, in a penal
sum equal to 11/2 times the amount of the claim or 11/2 times
the amount allocated in the claim of lien to the parcel or
parcels of real property sought to be released, which bond
shall be conditioned for the payment of any sum which the
claimant may recover on the claim together with his cost of
suit in the action, if he recovers therein. Upon the recording
of such bond the real property described in such bond is released
from the lien and from any action brought to foreclose such
lien. The principal upon such bond may be either the owner
of the property or the owner of any interest therein, or any
original contractor, subcontractor, or sub-subcontractor affected
by such claim of lien.
3144
Time for Filing Foreclosure Suit
(a)
No lien provided for in this chapter binds any property for
a longer period of time than 90 days after the recording of
the claim of lien, unless within that time an action to foreclose
the lien is commenced in a proper court, except that, if credit
is given and notice of the fact and terms of such credit is
recorded in the office of the county recorder subsequent to
the recording of such claim of lien and prior to the expiration
of such 90-day period, then such lien continues in force until
90 days after the expiration of such credit, but in no case
longer than one year from the time of completion of the work
of improvement.
(b)
If the claimant fails to commence an action to foreclose the
lien within the time limitation provided in this section,
the lien automatically shall be null and void and of no further
force and effect.
3144.5
Notice of Recording Release Bond; Statute of Limitations on
Bond
Any
person who obtains a lien release bond which is recorded pursuant
to Section 3143 shall give notice of the recording to the
lienholder by mailing a copy of the bond to the lienholder
at the address appearing on the lien. Service of the notice
shall be by certified or registered mail, return receipt requested.
Failure to give the notice provided by this section shall
not affect the validity of the lien release bond, but the
statute of limitations on any action on the bond shall be
tolled until the notice is given. Any action on the lien release
bond shall be commenced by the claimant within six months
of the recording of the lien release bond.
3145
Notice of Agreement of Credit or Extension of the Lien; Recording
As
against any purchaser or encumbrancer for value and in good
faith whose rights are acquired subsequent to the expiration
of the 90-day period following the recording of the claim
of lien, no giving of credit or extension of the lien or of
the time to enforce the same shall be effective unless evidenced
by a notice or agreement recorded in the office of the county
recorder prior to the acquisition of the rights of such purchaser
or encumbrancer.
3146
Notice of Pendency of Action
After
the filing of the complaint in the proper court, the plaintiff
may record in the office of the county recorder of the county,
or of the several counties in which the property is situated,
a notice of the pendency of such proceedings, as provided
in Section 409 of the Code of Civil Procedure. Only from the
time of recording such notice shall a purchaser or encumbrancer
of the property affected thereby be deemed to have constructive
notice of the pendency of the action, and in that event only
if its pendency against parties designated by their real names.
3147
Discretionary Two-Year Dismissal
If the action to foreclose the lien is not brought to trial
within two years after the commencement thereof, the court
may in its discretion dismiss the same for want of prosecution.
3148 Effect of Dismissal or Judgment
In all cases the dismissal of an action to foreclose the lien
(unless it is expressly stated that the same is without prejudice)
or a judgment rendered therein that no lien exists shall be
equivalent to the cancellation and removal from the record
of such lien.
3149 Joinder and Consolidation of Foreclosure
Actions
Any number of persons claiming liens on the same property
may join in the same action to foreclose their liens and when
separate actions are commenced the court may consolidate them.
3150 Recording Costs
In addition to any other costs allowed by law, the court in
an action to foreclose a lien must also allow as costs the
money paid for verifying and recording the lien, such costs
to be allowed each claimant whose lien is established, whether
he be plaintiff or defendant.
3151 Deficiency Judgment
Whenever on the sale of the property subject to any liens
provided for in this chapter, under a judgment of foreclosure
of such lien, there is a deficiency of proceeds, judgment
for the deficiency may be entered against any party personally
liable therefor in like manner and with like effect as in
an action for the foreclosure of a mortgage.
3152 Lien does not Affect the Right
to Maintain a Personal Action or Issuance of a Writ of Attachment
Nothing contained in this title affects the right of a claimant
to maintain a personal action to recover a debt against the
person liable therefor either in a separate action or in the
action to foreclose the lien, nor any right the claimant may
have to the issuance of a writ of attachment or execution
or to enforce a judgment by other means. In an application
for a writ of attachment, the claimant shall refer to this
section. A lien held by the claimant under this chapter does
not affect the right to procure a writ of attachment. The
judgment, if any, obtained by the claimant in a personal action,
or personal judgment obtained in a mechanic’s lien action,
does not impair or merge a lien held by the claimant under
this chapter, but any money collected on the judgment shall
be credited on the amount of the lien.
3153 Contractor Shall Defend Owner
Against Mechanics Lien Actions; Liability of Performance Bond
Surety
In all cases where a claim of lien is recorded for labor,
services, equipment, or materials furnished to any contractor,
he shall defend any action brought thereon at his own expense,
and during the pendency of such action the owner may withhold
from the original contractor the amount of money for which
the claim of lien is recorded. In case of judgment in such
action against the owner or his property upon the lien, the
owner shall be entitled to deduct from any amount then or
thereafter due from him to the original contractor the amount
of such judgment and costs. If the amount of such judgment
and costs exceeds the amount due from him to the original
contractor, or if he has settled with the original contractor
in full, he shall be entitled to recover back from the original
contractor, or the sureties on any bond given by him for the
faithful performance of his contract, any amount of such judgment
and costs in excess of the contract price, and for which the
original contractor was originally the party liable.
3154 Owner’s Petition for Decree
to Release Property from Lien
(a) At any time after the expiration of the time period specified
by Section 3144 with regard to the period during which property
is bound by a lien after recordation of a claim of lien, where
no action has been brought to enforce such lien, the owner
of the property or the owner of any interest therein may petition
the proper court for a decree to release the property from
the lien.
(b) The petition shall be verified and shall allege all of
the following:
(1) The date of recordation of the claim of lien.
(2) The legal description of the property affected by such
claim of lien.
(3) That no action has been filed to foreclose the lien, or
that no extension of credit has been recorded, and that the
time period during which suit can be brought to foreclose
the lien has expired.
(4) That the lien claimant is unable or unwilling to execute
a release of the lien or cannot with reasonable diligence
be found.
(5) That the owner of the property or interest in the property
has not filed for relief under any law governing bankrupts,
and that there exists no other restraint to prevent the lien
claimant from filing to foreclose his or her lien. A certified
copy of the claim of lien shall be attached to the petition.
The petition shall be deemed controverted by the lien claimant.
(c) Upon the filing of the petition, and before any further
proceedings are had, the clerk, or if there is no clerk, the
judge shall set a date for the hearing not more that 30 days
following the filing of the petition. The court may continue
the hearing beyond the 30-day period, but good cause shall
be shown for any continuance.
(d) A copy of the petition and the notice setting the date
for the hearing shall be served upon the lien claimant at
least 10 days prior to the date set for hearing, in the manner
in which a summons is required to be served, or by certified
or registered mail, postage prepaid, return receipt requested,
addressed to the lien claimant at the claimant’s address
as shown: (1) on the preliminary 20-day notice served by the
claimant pursuant to Section 3097, (2) in the records of the
registrar of contractors, (3) on the contract on which the
lien is based, or (4) on the claim of lien itself. When service
is made by mail as provided in this section, service is complete
on the fifth day following the day of the deposit of such
mail. No decree shall issue in favor of the petitioner unless
the petitioner proves that service of the petition and the
order fixing the date for hearing was made in compliance with
this subdivision. The issue of compliance with this subdivision
shall be deemed controverted by the lien claimant.
(e) In the event judgment is rendered in favor of the petitioner,
the decree shall indicate all of the following:
(1) The date the lien was recorded.
(2) The county and city, if any, in which the lien was recorded.
(3) The book and page of the place in the official records
where the lien is recorded.
(4) The legal description of the property affected. Upon the
recordation of a certified copy of the decree, the property
described in the decree shall be released from the lien.
(f) The prevailing party shall be entitled to attorneys’
fees not to exceed one thousand dollars ($1,000).
(g) Nothing in this section shall be construed to bar any
other cause of action or claim for relief by the owner of
the property or an interest in the property, nor shall a decree
canceling a claimant’s lien bar the lien claimant from
bringing any other cause of action or claim for relief, other
than an action foreclosing such lien. However, no other action
or claim shall be joined with the claim for relief established
by this section.
(h) The provisions of Chapter 2.5 (commencing with Section
1141.10) of Title 3 of Part 3 of the Code of Civil Procedure
shall not apply to causes commenced pursuant to this section.
CHAPTER 3 STOP NOTICES FOR PRIVATE
WORKS OF IMPROVEMENT
ARTICLE 1 APPLICATION OF CHAPTER
3156 Chapter does not Apply to Public
Works
The provisions of this chapter do not apply to any public
work.
ARTICLE 2 WHO IS ENTITLED TO SERVE
A STOP NOTICE AND BONDED STOP NOTICE
3158
Claimants Other Than Original Contractor; Written Demand for
Stop Notice; Forfeiture of Mechanics Lien Right
Any of the persons named in Sections 3110, 3111, and 3112,
other than the original contractor, may give to the owner
a stop notice. Any person who shall fail to serve such a stop
notice after a written demand therefor from the owner shall
forfeit his right to a mechanic’s lien.
3159 Stop Notice to Construction Lender;
Payment Bond; Net Amount of Stop Notice
(a) Any of the persons named in Sections 3110, 3111, and 3112
may, prior to the expiration of the period within which his
or her claim of lien must be recorded under Chapter 2 (commencing
with Section 3109), give to a construction lender a stop notice
or a bonded stop notice. The construction lender shall be
subject to the following:
(1) The construction lender shall withhold funds pursuant
to a bonded stop notice filed by an original contractor, regardless
of whether a payment bond has previously been recorded in
the office of the county recorder where the site is located
in accordance with Section 3235.
(2) The construction lender shall withhold funds pursuant
to a bonded stop notice filed by any other person named in
Sections 3110, 3111, and 3112, unless a payment bond has previously
been recorded in the office of the county recorder where the
site is located in accordance with Section 3235. If a payment
bond has previously been recorded, the construction lender
may, at its option, withhold funds pursuant to the bonded
stop notice or stop notice, or may elect not to withhold pursuant
to the bonded stop notice or stop notice given by anyone other
than an original contractor.
(3) If, when giving the construction lender the stop notice
or bonded stop notice, the claimant makes a written request
for notice of the election, accompanied by a preaddressed,
stamped envelope, the construction lender shall furnish the
claimant a copy of the bond within 30 days after making the
election. A lender shall not be liable for a failure to furnish
a copy of the bond if the failure was not intentional and
resulted from a bona fide error, if the lender maintains reasonable
procedures to avoid such an error, and if the error was corrected
not later than 20 days from the date on which the violation
was discovered. The payment bond may be recorded at any time
prior to the serving of the first stop notice. The notice
may only be given for materials, equipment, or services furnished,
or labor performed.
(b) In the case of a stop notice or bonded stop notice filed
by the original contractor or by a subcontractor, the original
contractor or subcontractor shall only be entitled to recover
on his or her stop notice or bonded stop notice the net amount
due the original contractor or subcontractor after deducting
the stop notice claims of all subcontractors or material suppliers
who have filed bonded stop notices on account of work done
on behalf of the original contractor or the subcontractor.
(c) In no event shall the construction lender be required
to withhold, pursuant to a bonded stop notice, more than the
net amount identified in subdivision (b). Notwithstanding
any other provision, no construction lender shall have any
liability for the failure to withhold more than this net amount
upon receipt of a bonded stop notice.
ARTICLE 3 CONDITIONS TO VALID SERVICE
OF STOP NOTICE AND BONDED STOP NOTICE
3160 Preliminary Twenty-Day Notice; Time for Service of Stop
Notice
Service of a stop notice or a bonded stop notice shall be
effective only if the claimant:
(a) Gave the preliminary 20-day notice (private work) in accordance
with the provisions of Section 3097 if required by that section;
and
(b) Served his stop notice as defined in Section 3103 or his
bonded stop notice as defined in Section 3083 prior to the
expiration of the period within which his claim of lien must
be recorded under Section 3115, 3116, or 3117.
ARTICLE 4 EFFECT OF STOP NOTICE AND
BONDED STOP NOTICE
3161 Duty of Owner to Withhold; Payment Bond
It shall be the duty of the owner upon receipt of a stop notice
pursuant to Section 3158 to withhold from the original contractor
or from any person acting under his or her authority and to
whom labor or materials, or both, have been furnished, or
agreed to be furnished, sufficient money due or to become
due to such contractor to answer such claim and any claim
of lien that may be recorded therefor, unless a payment bond
has been recorded pursuant to the provisions of Section 3235,
in which case the owner may, but is not obligated to, withhold
such money.
If the owner elects not to withhold pursuant to a stop notice
by reason of a payment bond having been previously recorded,
then the owner shall, within 30 days after receipt of the
stop notice, give a written notice to the claimant at the
address shown in the stop notice that the bond has been recorded
and furnish to the claimant a copy of that bond.
3162 Duty of Construction Lender to
Withhold; Payment Bond
(a) Upon receipt of a stop notice pursuant to Section 3159,
the construction lender may, and upon receipt of a bonded
stop notice the construction lender shall, except as provided
in this section, withhold from the borrower or other person
to whom it or the owner may be obligated to make payments
or advancement out of the construction fund, sufficient money
to answer the claim and any claim of lien that may be recorded
therefor. The construction lender shall be subject to the
following:
(1) The construction lender shall withhold funds pursuant
to a bonded stop notice filed by an original contractor, regardless
of whether a payment bond has previously been recorded in
the office of the county recorder where the site is located
in accordance with Section 3235.
(2) The construction lender shall withhold funds pursuant
to a bonded stop notice filed by any other person named in
Sections 3110, 3111, and 3112, unless a payment bond has previously
been recorded in the office of the county recorder where the
site is located in accordance with Section 3235. If a payment
bond has previously been recorded, the construction lender
may, at its option, withhold funds pursuant to the bonded
stop notice or stop notice, or may elect not to withhold pursuant
to the bonded stop notice or stop notice given by anyone other
than an original contractor.
(3) If, when giving the construction lender the stop notice
or bonded stop notice, the claimant makes a written request
for notice of the election, accompanied by a preaddressed,
stamped envelope, the construction lender shall furnish the
claimant a copy of the bond within 30 days after making the
election. A lender shall not be liable for a failure to furnish
a copy of the bond if the failure was not intentional and
resulted from a bona fide error, if the lender maintains reasonable
procedures to avoid such an error, and if the error was corrected
not later than 20 days from the date on which the violation
was discovered. The payment bond may be recorded at any time
prior to the serving of the first stop notice.
(b) In the case of a stop notice or bonded stop notice filed
by the original contractor or by a subcontractor, the original
contractor or subcontractor shall only be entitled to recover
on his or her stop notice or bonded stop notice the net amount
due the original contractor or subcontractor after deducting
the stop notice claims of all subcontractors or material suppliers
who have filed bonded stop notices on account of work done
on behalf of the original contractor or the subcontractor.
(c) In no event shall the construction lender be required
to withhold, pursuant to a bonded stop notice, more than the
net amount identified in subdivision (b). Notwithstanding
any other provision, no construction lender shall have any
liability for the failure to withhold more than this net amount
upon receipt of a bonded stop notice.
3163 Objection to Sufficiency of Sureties on Stop Notice Bond
If the construction lender objects to the sufficiency of the
sureties on the bond accompanying the bonded stop notice,
he must give notice in writing of such objection to the claimant
within 20 days after the service of the bonded stop notice.
The claimant may within 10 days after the receipt of such
written objection substitute for the initial bond a bond in
like amount executed by a corporate surety licensed to write
such bonds in the State of California. If the claimant fails
to do so, the construction lender may disregard the bonded
stop notice and release all funds withheld in response thereto.
ARTICLE 5 PRIORITIES
3166 Stop Notice Takes Priority Over Assignment of Construction
Loan Funds
No assignment by the owner or contractor of construction loan
funds, whether made before or after a stop notice or bonded
stop notice is given to a construction lender, shall be held
to take priority over the stop notice or bonded stop notice,
and such assignment shall have no effect insofar as the rights
of claimants who give the stop notice or bonded stop notice
are concerned.
3167 Pro Rata Distribution
(a) If the money withheld or required to be withheld pursuant
to any bonded stop notice shall be insufficient to pay in
full the valid claims of all persons by whom such notices
were given, the same shall be distributed among such persons
in the same ratio that their respective claims bear to the
aggregate of all such valid claims. Such pro rata distribution
shall be made among the persons entitled to share therein
without regard to the order of time in which their respective
notices may have been given or their respective actions, if
any, commenced.
(b) If the money withheld or required to be withheld pursuant
to any stop notice shall be insufficient to pay in full the
valid claims of all persons by whom such notices were given,
the same shall be distributed among such persons in the same
ratio that their respective claims bear to the aggregate of
all such valid claims. Such pro rata distribution shall be
made among the persons entitled to share therein without regard
to the order of time in which their respective notices may
have been given or their respective actions, if any, commenced.
3168 Willfully False Stop Notice; Forfeiture
Any person who willfully gives a false stop notice or bonded
stop notice or who willfully includes in his notice labor,
services, equipment, or materials not furnished for the property
described in such notice forfeits all right to participate
in the pro rata distribution of such money and all right to
any lien under Chapter 2 (commencing with Section 3109).
ARTICLE 6 RELEASE OF STOP NOTICE OR
BONDED STOP NOTICE
3171 Release Bond
If the owner, construction lender or any original contractor
or subcontractor disputes the correctness or validity of any
stop notice or bonded stop notice, he may file with the person
upon whom such notice was served a bond executed by good and
sufficient sureties in a penal sum equal to 11/4 times the
amount stated in such notice, conditioned for the payment
of any sum not exceeding the penal obligation of the bond
which the claimant may recover on the claim, together with
his costs of suit in the action, if he recovers therein. Upon
the filing of such bond, the funds withheld to respond to
the stop notice or bonded stop notice shall forthwith be released.
ARTICLE 7 ENFORCEMENT OF RIGHTS ARISING FROM STOP NOTICE AND
BONDED STOP NOTICE
3172 Action to Enforce Stop Notice Claim: Commencement; Five-Day
Notice of Commencement
An action against the owner or construction lender to enforce
payment of the claim stated in the stop notice or bonded stop
notice may be commenced at any time after 10 days from the
date of the service of the stop notice upon either the owner
or construction lender and shall be commenced not later than
90 days following the expiration of the period within which
claims of lien must be recorded as prescribed in Chapter 2
(commencing with Section 3109). No such action shall be brought
to trial or judgment entered until the expiration of said
90-day period. No money shall be withheld by reason of any
such notice longer than the expiration of such 90-day period
unless such action is commenced. If no such action is commenced,
such notice shall cease to be effective and such moneys shall
be paid or delivered to the contractor or other person to
whom they are due. Notice of commencement of any such action
shall be given within five days after commencement thereof
to the same persons and in the same manner as provided for
service of a stop notice or bonded stop notice.
3173 Discretionary Two-Year Dismissal
In case such action is commenced as provided in Section 3172
but is not brought to trial within two years after the commencement
thereof, the court may in its discretion dismiss the action
for want of prosecution.
3174 Effect of Dismissal or Judgment
Upon the dismissal of an action to enforce a stop notice or
bonded stop notice, unless expressly stated to be without
prejudice, or upon a judgment rendered therein against the
claimant, the stop notice or bonded stop notice shall cease
to be effective and the moneys withheld shall be paid or delivered
to the person to whom they are due.
3175 Joinder and Consolidation; Impleader
Any number of persons who have given stop notices or bonded
stop notices may join in the same action and when separate
actions are commenced the court first acquiring jurisdiction
may consolidate them. Upon the motion of the owner or construction
lender the court shall require all claimants to the moneys
withheld pursuant to stop notices and bonded stop notices
to be impleaded in one action, to the end that the respective
rights of all parties may be adjudicated therein.
3176 Attorneys Fees to Prevailing Party
In any action against an owner or construction lender to enforce
payment of a claim stated in a bonded stop notice, the prevailing
party shall be entitled to collect from the party held liable
by the court for payment of the claim, reasonable attorney’s
fees in addition to other costs and in addition to any liability
for damages.
The court, upon notice and motion by a party, shall determine
who is the prevailing party for purposes of this section,
whether or not the suit proceeds to final judgment. Except
as otherwise provided by this section, the prevailing party
shall be the party who recovered a greater relief in the action.
The court may also determine that there is no prevailing party.
Where an action has been voluntarily dismissed or dismissed
pursuant to a settlement of the case, there shall be no prevailing
party for purposes of this section.
Where the defendant alleges in his or her answer that he or
she tendered to the plaintiff the full amount to which he
or she was entitled, and thereupon deposits in court for the
plaintiff, the amount so tendered, and the allegation is found
to be true, then the defendant is deemed to be a prevailing
party.
3176.5
Interest on Stop Notice Claim
If the plaintiff is the prevailing party in any action against
an owner or construction lender to enforce payment of a claim
stated in a bonded stop notice, any amount awarded on the
claim shall include interest at the legal rate calculated
from the date the bonded stop notice is served upon the owner
or construction lender pursuant to Section 3172. |
