How to Remove a Mechanics Lien from Your Property
It sometimes happens that a contractor or material supplier records a mechanics lien on your property that becomes expired. Other times, the mechanics lien may be wrong, invalid and unenforceable for some reason, serving no legitimate purpose. The contractor or material supplier may be reasonable and release the mechanics lien once these issues are brought […]
Enforceability Of Subcontract “Pay-When-Paid” Provisions – An Important Update
A California Court of Appeals opinion published earlier this month brings a change to payment bond claims brought by unpaid subcontractors and suppliers. The decision (Crosno Construction, Inc. v. Travelers Casualty and Surety Company of America) places limitations on a payment bond surety’s ability to rely on subcontract “pay-when-paid” language, stating that a payment provision […]
Mitigation, Restructuring and Bankruptcy: Small Business Tools in the Era of COVID-19
The impact of the COVID-19 pandemic has been sudden and severe. Worldwide, populations are dealing with a public health crisis, which has abruptly impacted the economy. As cases continue to increase across the United States, both the federal government and state governments, including California, are directing people to “shelter in place” and “socially distance” from […]
Killer Subcontract Provisions
We are frequently requested by subcontractor clients to review the subcontract that has been prepared by the prime contractor, before our client signs it. While no two agreements are identical, there are a number of problematic contract provisions that appear in many agreements. Here is a list of ten such provisions (and their variations) that […]
Is Your Home Improvement Contract Putting You At Risk?
If you are like many contractors, odds are that your home improvement contract (HIC) is not compliant with California law, putting you at risk for disciplinary action, voiding of the contract, and even criminal prosecution. Generally, the laws allow parties to contract how they wish. However, California HICs are an exception and California Business and […]
Corporate Formalities: A Necessary Part of Business
Many benefits exist in choosing to create a corporation or limited liability company (“LLC”) as your business entity. However, what attracts most people to these entities is the protection they afford the business owner(s) against personal liability for the business’ obligations, debts, and other liabilities. Whatever reason prompts your decision to form a corporation or […]
When is a Mechanics Lien Premature?
It is well-established law in California that the latest date on which a mechanic’s lien may be recorded relates to the date of completion (or cessation) of the project work, or, if a Notice of Completion is recorded, to the date of the recording of that Notice. As to the earliest date a subcontractor or […]
Holding A Meeting Among Parties To A Dispute
There are occasions when a meeting (pre-litigation) among parties to a dispute with similar and/or opposing interests can be productive. Many contracts require parties to a dispute to “meet and confer” prior to initiating a formal claim. The purposes of such a meeting may include reviewing and discussing the issue, identifying any common interests and […]
