Collections: Mechanics’ Liens, Stop Payment Notices and Bond Claims
The right to pursue the collection of a construction-related debt through a mechanics’ lien is specifically guaranteed to contractors, subcontractors, suppliers and others by the California State Constitution, Article XIV, sec 3. The right to a stop payment notice and a payment bond claim derive from this right. Over the years, numerous statutes and hundreds of court cases have further refined these basic rights.
The evolution of these laws has resulted in an obstacle course of paperwork and service requirements. These include County Recorder filings and Superior Court filings – each with its own unique documentation requirements, deadlines and mandatory service rules. Claimants and their attorneys must properly complete the appropriate documents, serve those documents in a timely manner, maintain proof of service, record other documents as necessary and bring suit within proper timelines. Any single misstep along the way can be 100% fatal to the entire claim.
Pursuing your mechanics’ lien, stop payment notice and bond claim remedies should be trusted to attorneys who thoroughly understand this complex and often confusing area of law. There is no substitute for experience.
Porter Law Group is one of California’s foremost authorities on construction collections. The firm’s founder, William Porter, an expert on the construction collection process, lectures frequently before contractors, subcontractors, suppliers, developers and public entities on construction collection remedies, the necessary forms, and the procedures and deadlines. Mr. Porter has regularly contributed to construction collection legislation. Mr. Porter chaired the committee of California attorneys who rewrote all of the key California Civil Code sections relating to such public and private project collection tools as the Preliminary Notice, the Mechanics Lien, Stop Payment Notice, Payment Bond Claim, Prompt Payment Remedies and a host of other laws intended to protect the payment rights of California contractors, subcontractors, suppliers, and others. Porter Law Group’s construction-related forms, including mechanics’ lien, stop payment notice and bond claim forms, as well as applicable amendment forms, release forms and associated documents are widely used throughout the construction industry.
We educate our clients about collections rules and regulations, and advise them on strategies to strengthen their positions should they find themselves unpaid. We lead the industry in internet construction education through our educational video series found on AppliedLegal.com. We seek to resolve collection disputes out of court whenever possible. However, when necessary, we will not shy from a fight. Since 2000, we have represented more than 1,000 construction collections clients in court, and have received favorable outcomes in 90% of these cases.
From a simple mechanics’ lien on a single piece of property to a complex action on a multi-tenant commercial property with bankruptcy court involvement, Porter Law Group provides skill, experience and commitment in pursuit of a successful outcome to collections claims.
