Any developer, owner, contractor, subcontractor, material supplier, or design professional should be aware of the changes that have been made to California Mechanic’s Lien Law which have taken effect as of January 1, 2011. Failure to properly implement these changes will have drastic consequences as it will render a Mechanic’s Lien unenforceable as a matter of law.

STATUTORY REQUIREMENTS:

Prerequisites That Remain Unchanged

1. Recording a Mechanic’s Lien After Valid Notice of Completion or Cessation Has Been Recorded
   • General Contractors
     If a claimant is a general contractor on the Project, it must record its Mechanic’s Lien within 60 days after a valid notice of completion or cessation has been recorded.
   • Subcontractor or Supplier
     If a claimant is a subcontractor or supplier on the Project, it must record its Mechanic’s Lien within 30 days after a valid notice of completion or cessation has been recorded.
2. Recording a Mechanic’s Lien If No Valid Notice of Completion or Cessation Has Been Recorded
   
   • General Contractors, Subcontractors, or Suppliers
     Where no valid notice of completion or cessation has been recorded, then all claimants must record their Mechanic’s Liens within 90 days after completion of the work of improvement, as completion is defined in Civil Code section 3260.
3. Mechanic’s Liens Must Include:
   • Statement of the Claimant’s Demand
   • Name of Owner or Reputed Owner
   • Description of Site Sufficient For Identification

Prerequisites Effective January 1, 2011. In addition to existing statutory requirements, the 2011 changes require a claimant to:

1. Include A New Statutorily Defined Warning Notice on Notice of Mechanic’s Lien
   • As of January 1, 2011, a claimant must include the following statutorily defined warning notice on the Notice of Mechanic’s Lien, printed in at least 10 point boldface font:

     NOTICE OF MECHANIC’S LIEN ATTENTION!
     Upon the recording of the enclosed MECHANIC’S 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 mechanic’s lien is recorded.
     The party identified in the mechanic’s 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 mechanic’s 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 mechanic’s 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 MECHANIC’S LIENS GO TO THE CONTRACTORS’ STATE LICENSE BOARD WEB SITE AT www.cslb.ca.gov.

   • Note, failure to include this warning notice prior to recordation will render your Mechanic’s Lien unenforceable as a matter of law.
2. Serve The Notice of Mechanic’s Lien & Copy of Mechanic’s Lien Upon The Property Owner or Reputed Owner
   • As of January 1, 2011, a claimant must serve the Notice of Mechanic’s Lien and a copy of the Mechanic’s Lien via first class mail, registered mail, or certified mail, evidenced by a certificate of mailing, on the property owner or reputed owner prior to recordation of the lien.
     

     The Notice of Mechanic’s Lien must be addressed to the owner or reputed owner at the owner’s or reputed owner’s residence, place of business or at the address shown on the building permit on file with the authority issuing the building permit.

     If a claimant is unable to effect service upon the owner, the Mechanic’s Lien must be served via first class mail, registered mail, or certified mail, evidenced by a certificate of mailing, on the construction lender or prime contractor.

   • Note, failure to properly serve this Notice will render your Mechanic’s Lien unenforceable as a matter of law.
3. Memorialize Service Of Mechanic’s Lien By A Proof of Service Affidavit
   • When recording a Mechanic’s Lien with the county recorder, the claimant must now also include a Proof of Service Affidavit as well as the Notice of Mechanic’s Lien with the lien.
   • The Proof of Service Affidavit must be signed by the person serving the Notice of Mechanic’s Lien and must include the date, place, manner of service and facts establishing that service was made in accordance with the service requirements. It must also include the name and address of the person that was served with a copy of the Notice of Mechanic’s Lien and Mechanic’s Lien.
4. If You File A Complaint to Foreclose A Mechanic’s Lien, You Must Record A Notice of Pendency of Action Within 20 Days
   • The Proof of Service Affidavit must be signed by the person serving the Notice of Mechanic’s Lien and must include the date, place, manner of service and facts establishing that service was made in accordance with the service requirements. It must also include the name and address of the person that was served with a copy of the Notice of Mechanic’s Lien and Mechanic’s Lien.

Should You Have Any Questions/Concerns, Contact Lang, Richert & Patch

Failure to properly adhere to the 2011 requirements will render your Mechanic’s Lien unenforceable as a matter of law. The Construction Practice Group at Lang, Richert & Patch has more than 50 years combined construction litigation experience and is available to help protect your interests. Please contact us to address any construction issues, including the proper filing and recording of your Mechanic’s Lien and enforcement procedures through litigation.

Lang, Richert & Patch congratulates the following Super Lawyers: personal injury and wrongful death specialist Robert L. Patch II; construction and complex litigation attorney Val W. Saldana; bankruptcy and insolvency advocate Rene Lastreto II; employment and labor law attorney Charles T. Taylor; and construction law specialist Mark L. Creede.

Among Lang, Richert & Patch’s up-and-coming attorneys are Rising Stars: Matthew W. Quall, construction litigation attorney; Craig B. Fry, corporate and business transactions and bankruptcy specialist; Scott J. Ivy, business litigation, attorney; and Ana de Alba, business litigation attorney.

These 9 Super Lawyer and Rising Star honorees come from diverse practice areas and represent nearly half of all attorneys practicing with Lang, Richert, & Patch. Lang, Richert & Patch is proud to have among the largest contingent of Super Lawyer and Rising Star honorees in the Central Valley.

Lang, Richert & Patch continues to maintain its reputation as “The Firm of Distinction”, with five attorneys earning the title of Super Lawyer and two others being named as Rising Stars. The Super Lawyers hailing from Lang, Richert & Patch include; personal injury and wrongful death specialist Robert L. Patch II, construction and complex litigation attorney Val W. Saldana, bankruptcy and insolvency advocate Rene Lastreto II, employment and labor law attorney Charles T. Taylor, and construction law specialist Mark L. Creede. LR&P further recognizes Rising Stars, Matthew W. Quall, construction litigation attorney, and Craig B. Fry, corporate and business transactions and bankruptcy specialist.

The selection of Super Lawyers and Rising Stars from Lang, Richert & Patch represents the broad and diverse set of skills and backgrounds the firm brings to litigation matters. The seven Super Lawyer and Rising Star honorees represent two thirds of the lawyers currently practicing with Lang, Richert, & Patch and is by far the largest contingent in the Central Valley. Attorney Val Saldana commented that the title is, “as much an honor for the entire firm, as it is for the individuals involved”. Saldana further noted, “we have always taken a collaborative team approach to our complex litigation matters.” The multiple Super Lawyer and Rising Star distinctions demonstrate Lang, Richert & Patch’s ability to provide aggressive and effective results to a wide range of client demands.

Lang, Richert & Patch has strived for more than 40 years to provide its clients with premier legal services through establishing an open and collaborative environment while maintaining a result driven mentality. The experience and expertise of the firm has earned the respect of both the local and legal communities. The firm also received the prestigious, Martindale-Hubbell AV-rating, which is the highest peer rating for ethics and ability. Looking ahead, Val Saldana notes that, “we have worked hard to achieve preeminent status in the business litigation and bankruptcy departments. And we intend to keep on building.”

“In furtherance of this ruling and Prop 35, we urge the Legislature to send Governor Schwarzenegger legislation to allow the state to use design-build and public-private partnerships on even more projects to be constructed with the 2006 infrastructure bonds so that these important works can be delivered as quickly and efficiently as possible. California demands and deserves no less.”

The California Chamber of Commerce (CalChamber) is the largest broad-based business advocate to government in California. Membership represents one-quarter of the private sector jobs in California and includes firms of all sizes and companies from every industry within the state. Leveraging our front-line knowledge of laws and regulations, they provide products and services to help businesses comply with both federal and state law. CalChamber, a not-for-profit organization with roots dating to 1890, promotes international trade and investment in order to stimulate California’s economy and create jobs. Please visit their website at www.calchamber.com.