Full question:
Is there a monetary limit on a mechanics/contractors lien?
- Category: Contractors
- Subcategory: Construction Liens
- Date:
- State: California
Answer:
In California, a contractor can file a mechanic's lien on a property for unpaid work. According to Civil Code §3123, the lien amount must be the lesser of the reasonable value of the work performed or the contract price. There is an exception in subdivision (b) that allows contractors to include amounts for work due from written contract modifications or in cases of rescission, abandonment, or breach of contract.
If a contractor overstates the lien or includes unauthorized costs, the property owner can seek a court order to reduce or release the lien. Furthermore, under §3118, if a contractor intentionally includes charges for work not done on the property, they may lose their lien rights.
A California appellate court has ruled that a lien can exceed the written contract price if it includes the value of additional work requested by the owner before paying the remaining contract balance. Trial courts have discretion to adjust overstated mechanic's liens to the correct amount (Basic Modular Facilities, Inc. v. Ehsanipour, 70 Cal.App.4th 1480, 83 Cal.Rptr.2d 462 (1999)).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.