How much work does a mechanic's lien cover? How is it different from a stop notice? What jobs are required to be bonded? Must I choose among these remedies? Construction industry professionals frequently ask questions such as these when facing payment disputes or claims on projects. Unique remedies such as the mechanic's lien and stop notice can provide security for payment claims of contractors and suppliers who are not paid. On the other hand, these remedies also provide significant risks to owners and developers of projects.
This seminar is designed to survey the important issues about mechanics' liens, stop notices and payment/performance bonds on both public and private works projects in California. Speakers include well-known construction lawyers with experience in these issues. The participants will receive practical advice on the ways and means of prosecuting and defending against mechanics' liens, stop notices and bond claims. A special course manual, complete with forms and timelines, will be distributed.
- Evaluate the remedies appropriate for both private works and public works
- Understand important differences between mechanics' liens and stop notice remedies
- Comply with the strict deadlines and procedural requirements for asserting these remedies
- Develop methods of protesting against false or improper lien claims
- Comply with the numerous prompt payment laws enacted in California
- The attendee will be able to discuss procedures for claiming liens.
- The attendee will be able to identify protective procedures in the course of construction.
- The attendee will be able to review dispute resolution.
8:30 a.m. - 8:40 a.m.
A. Constitutional Right To Lien
B. Theory Of Unjust Enrichment
C. Legislative Tug Of War; Balance Of Interest; Deadlines And Procedures Construed Strictly
8:40 a.m. - 9:00 a.m.
II. Mechanics' Liens In General
A. Benefits For Contractor
B. Risks For Owner
9:00 a.m. - 9:10 a.m.
III. Private Works vs. Public Works: Multiple
A. Lien On Private Works Only
B. State/Local Agency Jobs; Payment Bonds
C. Federal Projects; Miller Act Bond Claims
9:10 a.m. - 9:50 a.m.
IV. Scope Of Mechanics' Lien Remedy
A. Three Tests For Entitlement
B. Direct Contribution
C. Intended To Improve Project
D. Request By Owner Or His Agent
E. Covers Contract Price Or Reasonable Value
F. Reaches Land And Structures
G. Problem Of Priorities
H. Design Professionals Special Lien
9:50 a.m. - 10:30 a.m.
V. Procedures For Claiming Lien ('Five
A. Contractors License Needed At All Times During Performance Of Contract At Issue, Limited Exception For Substantial Compliance
B. Preliminary 20-Day Notice
C. Preliminary Notice: Formal Requirements CC §3097 Provisions
D. Claim Of Lien
F. Effect Of Bankruptcy
G. Separate Works Of Improvement
H. Options (If Arbitration Required)
10:30 a.m. - 10:40 a.m.
10:40 a.m. - 11:20 a.m.
VI. Stop Notices In General
A. Benefits To Contractor
B. Risks To Owners
C. Scope Of Remedy: Similar To Lien Claims With Following Distinctions
11:20 a.m. - 12:00 p.m.
VII. Procedures For Claiming Stop Notice
(Public And Private Works)
A. Preliminary 20-Day Notice
B. Service Of Stop Notice
C. Lawsuit To Enforce
12:00 p.m. - 1:00 p.m.
Lunch (On Your Own)
1:00 p.m. - 1:40 p.m.
VIII. Protective Procedures For Owners/
Developers Before Commencement
A. Recording Payment Bond And Original Contract
B. Title Insurance
C. Landlord's Notice Of Non-Responsibility
D. Contract Clauses To Protect Against Liens
1:40 p.m. - 2:20 p.m.
IX. Protective Procedures In Course Of
A. Releases And Affidavits
B. Use Of Joint Checks Plus Release (CC §3262), Distinguish Problems With 'Payment In Full' Notation (CC §1526)
C. Notice Of Completion Or Cessation
D. Bonding-Off The Lien Or Stop Notice
E. Motion To Expunge
F. Public Works
G. Tender To Title Company For Defense And Indemnity
2:20 p.m. - 2:30 p.m.
2:30 p.m. - 3:20 p.m.
X. Construction Bonds
A. Nature Of Bonds
B. Common Law Bonds
C. Public Works (Mandatory For State And Local Agencies And U Of C)
D. Federal Jobs (Miller Act)
E. Importance Of Bonds
F. Bad Faith Punitive Damages
3:20 p.m. - 3:50 p.m.
XI. Prompt Payment Laws
A. Retention Statute
B. Progress Statute
3:50 p.m. - 4:20 p.m.
XII. Dispute Resolution
A. Mandatory Mediation/Arbitration
B. Mediation Trends And Techniques
4:20 p.m. - 4:30 p.m.
XIII. Questions And Answers