CONSTRUCTION DEFECT JOURNAL

"News and Information for Construction Defect and Claims Professionals"

CONSTRUCTION DEFECT JOURNAL - ISSUE 242749 - WEDNESDAY, APRIL 23, 2025

If I Released My California Mechanics Lien, Can I File a New Mechanics Lien on the Same Project? Will the New Mechanics Lien be Enforceable?

Construction workers in front of crane

In general, the answer to the above questions is “Yes”, but only if you meet certain requirements.

December 29, 2020
William L. Porter - Porter Law Group

If I Released My California Mechanics Lien, Can I File a New Mechanics Lien on the Same Project? Will the New Mechanics Lien be Enforceable?

In general, the answer to the above questions is “Yes”, but only if you meet the following requirements:

  1. You must only release the mechanics lien itself, but not the “right” to a mechanics lien: There is an important distinction to be made between releasing a mechanics lien and releasing the right to a mechanics lien. Whether you do one or the other will depend on the specific language used in your release. In the case of Santa Clara Land Title Co. v. Nowack and Associates, Inc. (1991) 226 Cal. App.3d, 1558 a “release of mechanics lien” document was recorded TO THE County Recorder’s office which included a statement that the mechanics lien was “fully satisfied, released and discharged”. Based on this language, the court concluded that the mechanics lien claimant had waived its “right” to a further mechanics lien on the same property for the work in question. The court concluded that since the release stated that the claim was “fully satisfied” the right to mechanics lien on the project had forever been waived. The Nowak case can be distinguished from the case of Koudmani v. Ogle Enterprises, Inc., (1996) 47 Cal.App.4th 1650, where the release of mechanics lien only stated that the mechanics lien was “otherwise released and discharged” and not that it was “satisfied”. Based on the distinction drawn from the two cases, a simple mechanics lien release that only releases the mechanics lien itself, but not the “right” to a mechanics lien should be used. At the following link you will find a proper form to achieve this purpose: https://www.porterlaw.com/wp-content/uploads/2019/06/03PRI-Mechanics-Lie...

Mr. Porter may be contacted at bporter@porterlaw.com


Use the form below to search the CDJ Archives: Search by topic, name, keywords, etc...

CDJ ARCHIVES-NEWS YOU MIGHT HAVE MISSED