Purpose of a Mechanic’s Lien

“The purpose of a mechanic’s lien is to prevent private property owners from obtaining a benefit to their property without paying the cost for it.” (Cal Sierra Construction, Inc. v. Comerica Bank (2012) 206 Cal. App. 4th 841, 848.) “The California Constitution directs the Legislature to provide for the speedy and efficient enforcement of mechanic’s liens in Article XIV, section 3.” (Connolly Development, Inc. v. Superior Court (1976) 17 Cal.3rd 803, 810.) “The mechanics’ lien system is the only creditors’ remedy stemming from a constitutional mandate.” (Id.)

Motion to Remove Mechanic’s Lien

“A motion to remove a mechanic’s lien is recognized as a device that allows the property owner to obtain speedy relief from an unjustified lien or a lien of an unjustified amount without waiting for trial on the action to foreclose the lien.” (Howard S. Wright Construction Company v. Superior Court (2003) 106 Cal. App. 4th 314, 318.)

“The grant of a motion to remove a mechanic’s lien is essentially a judgment on the underlying foreclosure action that no lien exists, and once the judgment is recorded, the lien is removed from the public records.” (Id. at 318.) See also, Civil Code §3148 (dismissal of action to foreclose lien or a judgment rendered therein that no lien exists shall be equivalent to the cancellation and removal from the record of such lien).

Procedural Steps to Removal of Mechanic’s Lien

The Legislature enacted the current statutory scheme for mechanic’s liens at Civil Code sections 8000 to 9566 and it has been operative since July 1, 2012. Civil Code section 8480 authorizes a party to file a petition to seek an order removing a mechanic’s lien when the claimant did not file an action to enforce the lien within the time required under section 8460, which is 90 days after the lien is recorded. Section 8482, however, states that the owner of property may not petition the Court for a release order unless at least 10 days before filing the petition the owner gives the claimant notice demanding that the claimant execute and record a release of the claim of lien.

Requirements for a Petition to Release Mechanic’s Lien

Section 8484 identifies the requirements for the petition for a release order, which include the following:

1. The date of recordation of the claim of lien. A certified copy of the claim of lien shall be attached to the petition.
2. The county in which the claim of lien is recorded.
3. The book and page or series number of the place in the official records where the claim of lien is recorded.
4. The legal description of the property subject to the claim of lien.
5. Whether an extension of credit has been granted under Section 8460, if so to what date, and that the time for commencement of an action to enforce the lien has expired.
6. That the owner has given the claimant notice under Section 8482 demanding that the claimant execute and record a release of the lien and that the claimant is unable or unwilling to do so or cannot with reasonable diligence be found.
7. Whether an action to enforce the lien is pending.
8. Whether the owner of the property or interest in the property has filed for relief in bankruptcy or there is another restraint that prevents the claimant from commencing an action to enforce the lien.

Hearing and Burdens of Proof

Sections 8486 and 8488 identifies the procedures for setting the hearing and the burdens of proof at the hearing. The petitioner has the initial burden of producing evidence on those matters. The petitioner has the burden of proof as to the issue of compliance with the service and date for hearing requirements of this article. The claimant has the burden of proof as to the validity of the lien.

Attorney’s Fees

Under Civil Code section 8488(c), the prevailing party on a petition to release property from a mechanic’s lien is entitled to reasonable attorney’s fees.