Section § 8410

Explanation

If someone wants to enforce a lien, they must first give a preliminary notice and be able to prove they did so, as required by the law starting at Section 8200.

A claimant may enforce a lien only if the claimant has given preliminary notice to the extent required by Chapter 2 (commencing with Section 8200) and made proof of notice.

Section § 8412

Explanation

This law says that a contractor can't make a legal claim on a property unless they officially file a claim of lien after finishing their contract. They must do this before 90 days after the work is all done or before 60 days after the property owner says the work is complete or has stopped, whichever of those two events happens first.

A direct contractor may not enforce a lien unless the contractor records a claim of lien after the contractor completes the direct contract, and before the earlier of the following times:
(a)CA Civil Law Code § 8412(a) Ninety days after completion of the work of improvement.
(b)CA Civil Law Code § 8412(b) Sixty days after the owner records a notice of completion or cessation.

Section § 8414

Explanation

If you're someone other than the main contractor working on a project and you want to file a lien (a legal claim) against the property, you must do so within certain time limits. You should file the lien after you've stopped working, but it has to be done within 90 days after the whole project is finished, or within 30 days if the property owner files a notice that the work is done or stopped, whichever comes first.

A claimant other than a direct contractor may not enforce a lien unless the claimant records a claim of lien within the following times:
(a)CA Civil Law Code § 8414(a) After the claimant ceases to provide work.
(b)CA Civil Law Code § 8414(b) Before the earlier of the following times:
(1)CA Civil Law Code § 8414(b)(1) Ninety days after completion of the work of improvement.
(2)CA Civil Law Code § 8414(b)(2) Thirty days after the owner records a notice of completion or cessation.

Section § 8416

Explanation

A mechanics lien claim must include a written statement with details like the claimant’s demand, owner's name, type of work, claimant’s employer, site description, claimant’s address, and a signed affidavit of service. A special notice explaining the lien's effect on property must also be included. This lien can be recorded without acknowledgment but must follow specific service rules. If the owner can't be directly served, the lien notice can be mailed to the construction lender or main contractor, and it becomes valid once mailed. If not properly served, the lien can't be enforced.

(a)CA Civil Law Code § 8416(a) A claim of mechanics lien shall be a written statement, signed and verified by the claimant, containing all of the following:
(1)CA Civil Law Code § 8416(a)(1) A statement of the claimant’s demand after deducting all just credits and offsets.
(2)CA Civil Law Code § 8416(a)(2) The name of the owner or reputed owner, if known.
(3)CA Civil Law Code § 8416(a)(3) A general statement of the kind of work furnished by the claimant.
(4)CA Civil Law Code § 8416(a)(4) The name of the person by whom the claimant was employed or to whom the claimant furnished work.
(5)CA Civil Law Code § 8416(a)(5) A description of the site sufficient for identification.
(6)CA Civil Law Code § 8416(a)(6) The claimant’s address.
(7)CA Civil Law Code § 8416(a)(7) A proof of service affidavit completed and signed by the person serving a copy of the claim of mechanics lien pursuant to subdivision (c). The affidavit shall show the date, place, and manner of service, and facts showing that the service was made in accordance with this section. The affidavit shall show the name and address of the owner or reputed owner upon whom the copy of the claim of mechanics lien was served pursuant to paragraphs (1) or (2) of subdivision (c), and the title or capacity in which the person or entity was served.
(8)CA Civil Law Code § 8416(a)(8) The following statement, printed in at least 10-point boldface type. The letters of the last sentence shall be printed in uppercase type, excepting the Internet Web site address of the Contractors’ State License Board, which shall be printed in lowercase type:
“NOTICE OF MECHANICS LIEN
ATTENTION!
Upon the recording of the enclosed MECHANICS LIEN with the county recorder’s office of the county where the property is located, your property is subject to the filing of a legal action seeking a court-ordered foreclosure sale of the real property on which the lien has been recorded. That legal action must be filed with the court no later than 90 days after the date the mechanics lien is recorded.
The party identified in the enclosed mechanics lien may have provided labor or materials for improvements to your property and may not have been paid for these items. You are receiving this notice because it is a required step in filing a mechanics lien foreclosure action against your property. The foreclosure action will seek a sale of your property in order to pay for unpaid labor, materials, or improvements provided to your property. This may affect your ability to borrow against, refinance, or sell the property until the mechanics lien is released.
BECAUSE THE LIEN AFFECTS YOUR PROPERTY, YOU MAY WISH TO SPEAK WITH YOUR CONTRACTOR IMMEDIATELY, OR CONTACT AN ATTORNEY, OR FOR MORE INFORMATION ON MECHANICS LIENS GO TO THE CONTRACTORS’ STATE LICENSE BOARD WEB SITE AT www.cslb.ca.gov.”
(b)CA Civil Law Code § 8416(b) A claim of mechanics lien in otherwise proper form, verified and containing the information required in subdivision (a), shall be accepted by the recorder for recording and shall be deemed duly recorded without acknowledgment.
(c)CA Civil Law Code § 8416(c) A copy of the claim of mechanics lien, which includes the Notice of Mechanics Lien required by paragraph (8) of subdivision (a), shall be served on the owner or reputed owner. Service shall be made as follows:
(1)CA Civil Law Code § 8416(c)(1) For an owner or reputed owner to be notified who resides in or outside this state, by registered mail, certified mail, or first-class mail, evidenced by a certificate of mailing, postage prepaid, addressed to the owner or reputed owner at the owner’s or reputed owner’s 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 as otherwise provided in Section 8174.
(2)CA Civil Law Code § 8416(c)(2) If the owner or reputed owner cannot be served by this method, then the copy of the claim of mechanics lien may be given by registered mail, certified mail, or first-class mail, evidenced by a certificate of mailing, postage prepaid, addressed to the construction lender or to the original contractor.
(d)CA Civil Law Code § 8416(d) Service of the copy of the claim of mechanics lien by registered mail, certified mail, or first-class mail, evidenced by a certificate of mailing, postage prepaid, is complete at the time of the deposit of that first-class, certified, or registered mail.
(e)CA Civil Law Code § 8416(e) Failure to serve the copy of the claim of mechanics lien as prescribed by this section, including the Notice of Mechanics Lien required by paragraph (8) of subdivision (a), shall cause the claim of mechanics lien to be unenforceable as a matter of law.

Section § 8422

Explanation

This law section deals with claims of lien in construction or property improvement cases. Generally, small mistakes in the lien about money, credits, or property details don't make the lien invalid. However, if someone's trying to cheat or if the mistake is so bad that a new owner couldn't figure out there might be a lien, then the lien can be invalid. Also, if someone knowingly adds work or materials to the lien that weren't actually provided, they lose their lien rights altogether.

(a)CA Civil Law Code § 8422(a) Except as provided in subdivisions (b) and (c), erroneous information contained in a claim of lien relating to the claimant’s demand, credits and offsets deducted, the work provided, or the description of the site, does not invalidate the claim of lien.
(b)CA Civil Law Code § 8422(b) Erroneous information contained in a claim of lien relating to the claimant’s demand, credits and offsets deducted, or the work provided, invalidates the claim of lien if the court determines either of the following:
(1)CA Civil Law Code § 8422(b)(1) The claim of lien was made with intent to defraud.
(2)CA Civil Law Code § 8422(b)(2) An innocent third party, without notice, actual or constructive, became the bona fide owner of the property after recordation of the claim of lien, and the claim of lien was so deficient that it did not put the party on further inquiry in any manner.
(c)CA Civil Law Code § 8422(c) Any person who shall willfully include in a claim of lien labor, services, equipment, or materials not furnished for the property described in the claim, shall thereby forfeit the person’s lien.

Section § 8424

Explanation

If you are a property owner or contractor dealing with a disputed lien on your property, you can release it by getting a lien release bond. This bond needs to be 125% of the claim's amount and backed by a recognized insurer. Recording this bond will free your property from the lien. You must notify the claimant by providing a copy of the bond, though the bond's validity isn't affected if the notice is late. However, the time limit for the claimant to take action on the bond doesn't start until you give notice, and they have six months to act once notified.

(a)CA Civil Law Code § 8424(a) An owner of real property or an owner of any interest in real property subject to a recorded claim of lien, or a direct contractor or subcontractor affected by the claim of lien, that disputes the correctness or validity of the claim may obtain release of the real property from the claim of lien by recording a lien release bond. The principal on the bond may be the owner of the property, the direct contractor, or the subcontractor.
(b)CA Civil Law Code § 8424(b) The bond shall be conditioned on payment of any judgment and costs the claimant recovers on the lien. The bond shall be in an amount equal to 125 percent of the amount of the claim of lien or 125 percent of the amount allocated in the claim of lien to the real property to be released. The bond shall be executed by an admitted surety insurer.
(c)CA Civil Law Code § 8424(c) The bond may be recorded either before or after commencement of an action to enforce the lien. On recordation of the bond, the real property is released from the claim of lien and from any action to enforce the lien.
(d)CA Civil Law Code § 8424(d) A person that obtains and records a lien release bond shall give notice to the claimant. The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1 and shall include a copy of the bond. Failure to give the notice required by this section does not affect the validity of the bond, but the statute of limitations for an action on the bond is tolled until notice is given. The claimant shall commence an action on the bond within six months after notice is given.

Section § 9400

Explanation

This law allows a contractor to get back money that was held due to a stop payment notice if certain conditions are met. The contractor can claim that the notice is not authorized, the person issuing it isn't allowed to do so, the claim amount is too high, or the claim itself is baseless.

A direct contractor may obtain release of funds withheld pursuant to a stop payment notice under the summary proceeding provided in this article on any of the following grounds:
(a)CA Civil Law Code § 9400(a) The claim on which the notice is based is not a type for which a stop payment notice is authorized under this chapter.
(b)CA Civil Law Code § 9400(b) The claimant is not a person authorized under Section 9100 to give a stop payment notice.
(c)CA Civil Law Code § 9400(c) The amount of the claim stated in the stop payment notice is excessive.
(d)CA Civil Law Code § 9400(d) There is no basis for the claim stated in the stop payment notice.

Section § 9402

Explanation

If a direct contractor believes funds are being wrongfully withheld by a public entity, they need to provide the entity with an affidavit, and an additional copy, detailing specific reasons and facts supporting why the funds should be released. The affidavit must also include the contractor's address in the state for receiving official notices or documents by mail.

The direct contractor shall serve on the public entity an affidavit, together with a copy of the affidavit, in compliance with the requirements of Chapter 2 (commencing with Section 8100) of Title 1, that includes all of the following information:
(a)CA Civil Law Code § 9402(a) An allegation of the grounds for release of the funds and a statement of the facts supporting the allegation.
(b)CA Civil Law Code § 9402(b) A demand for the release of all or the portion of the funds that are alleged to be withheld improperly or in an excessive amount.
(c)CA Civil Law Code § 9402(c) A statement of the address of the contractor within the state for the purpose of permitting service by mail on the contractor of any notice or document.

Section § 9404

Explanation

This section explains that when a public entity intends to release funds associated with a direct contractor, they must notify the person making the claim (the claimant) by sending a copy of the contractor's affidavit with a notice. The claimant has between 10 and 20 days to respond with a counteraffidavit to prevent the release of these funds. The notice has to follow specific guidelines mentioned in another legal section.

The public entity shall serve on the claimant a copy of the direct contractor’s affidavit, together with a notice stating that the public entity will release the funds withheld, or the portion of the funds demanded, unless the claimant serves on the public entity a counteraffidavit on or before the time stated in the notice. The time stated in the notice shall be not less than 10 days nor more than 20 days after service on the claimant of the copy of the affidavit. The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.

Section § 9406

Explanation

If you're challenging a statement by a main contractor about payment, you need to quickly send a detailed counter statement to the government entity involved, outlining why you disagree. You must also show that you've informed the contractor about this challenge. If you don't do all this within the given timeframe, the government will pay the contractor as requested, and they won't be liable for doing so. Also, the government isn't responsible for whether any of these statements are true or accurate.

(a)CA Civil Law Code § 9406(a) A claimant that contests the direct contractor’s affidavit shall serve on the public entity a counteraffidavit alleging the details of the claim and describing the specific basis on which the claimant contests or rebuts the allegations of the contractor’s affidavit. The counteraffidavit shall be served within the time stated in the public entity’s notice, together with proof of service of a copy of the counteraffidavit on the direct contractor. The service of the counteraffidavit on the public entity and the copy of the affidavit on the direct contractor shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.
(b)CA Civil Law Code § 9406(b) If no counteraffidavit with proof of service is served on the public entity within the time stated in the public entity’s notice, the public entity shall immediately release the funds, or the portion of the funds demanded by the affidavit, without further notice to the claimant, and the public entity is not liable in any manner for their release.
(c)CA Civil Law Code § 9406(c) The public entity is not responsible for the validity of an affidavit or counteraffidavit under this article.

Section § 9408

Explanation

This section outlines what happens when a counteraffidavit is filed in a construction dispute involving a direct contractor and a claimant. Once the counteraffidavit is filed and served, either party can start a court action to clarify their rights. After starting the court case, either side can ask the court to decide who is right based on the affidavit and counteraffidavit by giving at least five days' notice to all parties involved. The notice must follow specific mailing rules, which consider it served five days after being mailed. The court aims to hold a hearing on the issue within 15 days, unless there's a good reason to delay it.

(a)CA Civil Law Code § 9408(a) If a counteraffidavit, together with proof of service, is served under Section 9406, either the direct contractor or the claimant may commence an action for a declaration of the rights of the parties.
(b)CA Civil Law Code § 9408(b) After commencement of the action, either the direct contractor or the claimant may move the court for a determination of rights under the affidavit and counteraffidavit. The party making the motion shall give not less than five days’ notice of the hearing to the public entity and to the other party.
(c)CA Civil Law Code § 9408(c) The notice of hearing shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1. Notwithstanding Section 8116, when notice of the hearing is made by mail, the notice is complete on the fifth day following deposit of the notice in the mail.
(d)CA Civil Law Code § 9408(d) The court shall hear the motion within 15 days after the date of the motion, unless the court continues the hearing for good cause.

Section § 9410

Explanation

This law explains that when a contractor's affidavit and a claimant's counter-affidavit are filed in court, they become part of the official court records. The court can change these records if needed to be fair. During the court hearing, it's up to the contractor to prove their case.

(a)CA Civil Law Code § 9410(a) The affidavit and counteraffidavit shall be filed with the court by the public entity and shall constitute the pleadings, subject to the power of the court to permit an amendment in the interest of justice. The affidavit of the direct contractor shall be deemed controverted by the counteraffidavit of the claimant, and both shall be received in evidence.
(b)CA Civil Law Code § 9410(b) At the hearing, the direct contractor has the burden of proof.

Section § 9412

Explanation

This section describes a process where a court decides on a financial dispute quickly and without needing formal findings. The decision can be based solely on written statements if those statements provide enough information. If not, the court can postpone to allow more evidence to be presented. Ultimately, the court will determine if funds should continue to be withheld, affecting what the claimant can receive. The main contractor must inform the public agency of the court's decision.

(a)CA Civil Law Code § 9412(a) No findings are required in a summary proceeding under this article.
(b)CA Civil Law Code § 9412(b) If at the hearing no evidence other than the affidavit and counteraffidavit is offered, the court may, if satisfied that sufficient facts are shown, make a determination on the basis of the affidavit and counteraffidavit. If the court is not satisfied that sufficient facts are shown, the court shall order the hearing continued for production of other evidence, oral or documentary, or the filing of other affidavits and counteraffidavits.
(c)CA Civil Law Code § 9412(c) At the conclusion of the hearing, the court shall make an order determining whether the demand for release is allowed. The court’s order is determinative of the right of the claimant to have funds further withheld by the public entity.
(d)CA Civil Law Code § 9412(d) The direct contractor shall serve a copy of the court’s order on the public entity in compliance with the requirements of Chapter 2 (commencing with Section 8100) of Title 1.

Section § 9414

Explanation

This law states that decisions made in quick legal processes, called summary proceedings, are not final or binding (known as res judicata) on future lawsuits that a claimant might bring. This means if you go through a summary proceeding, it won't prevent further legal action against the main person or their guarantor on a payment bond, or anyone else who might owe you money.

A determination in a summary proceeding under this article is not res judicata with respect to a right of action by the claimant against either the principal or surety on a payment bond or with respect to a right of action against a party personally liable to the claimant.