{"id":902696,"date":"2024-05-15T14:58:02","date_gmt":"2024-05-15T20:58:02","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=902696"},"modified":"2024-05-15T14:58:05","modified_gmt":"2024-05-15T20:58:05","slug":"mechanics-lien-upheld-despite-lack-of-notice","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/mechanics-lien-upheld-despite-lack-of-notice\/","title":{"rendered":"Mechanics Lien Upheld Despite Lack of Notice to Senior Construction Lender"},"content":{"rendered":"\n<p>John Mark Goodman | <a href=\"https:\/\/www.buildsmartbradley.com\/2024\/05\/mechanics-lien-upheld-despite-lack-of-notice-to-senior-construction-lender\/?utm_source=Bradley+Arant+Boult+Cummings+LLP+-+BuildSmart&amp;utm_campaign=3dd1581409-RSS_EMAIL_CAMPAIGN&amp;utm_medium=email&amp;utm_term=0_b504caf31b-3dd1581409-78863422\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">BuildSmart<\/a><\/p>\n\n\n\n<p><br>In an unpublished opinion, a California appeals court has upheld a subcontractor\u2019s <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/the-life-of-a-mechanics-lien-claim-preserve-perfect-enforce-construction-law-musings-richmond-va\/\">mechanics lien claim<\/a> despite the subcontractor\u2019s failure to strictly follow the procedural requirements set forth in the mechanics lien statute (see\u00a0<em>Ram Concrete v. Montecito<\/em>, 2024 WL 1879352 (Cal. Ct. Appeal)). In\u00a0<em>Ram Concrete<\/em>, the trial court entered judgment for the subcontractor on its breach of contract and mechanics lien claim.\u00a0On appeal, the owner contended that the mechanics lien was invalid under the California lien statute because the subcontractor failed to give preliminary notice of its lien claim to the owner\u2019s construction lender.\u00a0The owner also contended that the senior secured interest of the construction lender prevented the subcontractor from foreclosing on the lien.\u00a0<\/p>\n\n\n\n<p>The appeals court rejected both arguments.&nbsp;As to the notice argument, the court recognized that the mechanics lien statute is remedial legislation and as such should be liberally construed for the protection of laborers and materialman. It reasoned that \u201c[t]o construe the preliminary notice statute strictly would require us to invalidate a lien against an owner who received notice because someone else did not receive notice. That strict statutory construction would allow a party who received the required notice to be insulated from liability because another party did not receive notice. We do not believe that the statute\u2019s purpose should, or does, lead to this aridly formalistic result.\u201d&nbsp; &nbsp;<\/p>\n\n\n\n<p>The court also rejected the owner\u2019s argument that the senior secured interest of the construction lender defeated the contractor\u2019s lien foreclosure claim. The owner could not point to any provision of the mechanic\u2019s lien statute requiring a mechanics lien holder to hold the senior lien interest on a property in order to foreclose.&nbsp;To the contrary, California law provides that a junior lienholder may enforce its lien by foreclosure, however its purchase of the property would remain subject to any senior liens.&nbsp;The court therefore found no merit in the owner\u2019s contention that the mechanics lien could not be enforced by foreclosure because there was allegedly a senior security interest on that property.<\/p>\n\n\n\n<p>A copy of the Court\u2019s decision is available\u00a0<a href=\"https:\/\/www.buildsmartbradley.com\/wp-content\/uploads\/sites\/34\/2024\/05\/H050865.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">here<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>John Mark Goodman | BuildSmart In an unpublished opinion, a California appeals court has upheld a subcontractor\u2019s mechanics lien claim despite the subcontractor\u2019s failure to strictly follow the procedural requirements set forth in the mechanics lien statute (see\u00a0Ram Concrete v. Montecito, 2024 WL 1879352 (Cal. Ct. Appeal)). In\u00a0Ram Concrete, the trial court entered judgment for&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/mechanics-lien-upheld-despite-lack-of-notice\/\">Continue reading <span class=\"screen-reader-text\">Mechanics Lien Upheld Despite Lack of Notice to Senior Construction Lender<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10772],"tags":[9895,88,76],"class_list":["post-902696","post","type-post","status-publish","format-standard","hentry","category-mechanics-lien-law","tag-advise-consult","tag-california","tag-mechanics-lien","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Mechanics Lien Upheld Despite Lack of Notice to Senior Construction Lender - Advise &amp; 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