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Mechanic Lien

Under numerous state laws, the mechanic has numerous independent and cumulative remedies to enforce payment for labor services and/or materials he or she has furnished to a work of improvement on real property including an action for breach of contract, an action under a contractor’s license bond, an action under a payment bond, enforcement of a stop notice and foreclosure of mechanic’s lien.

Who gets mechanic lien rights? Not all people contributing to a work of improvement are entitled to a lien. For example, in California, a material supplier who has contracted directly with a subcontractor is entitled to a lien; however, that materialman’s supplier of equipment or materials is not entitled to a lien.

If a lien is filed, the first question is whether the party filing the lien has a right to maintain the lien if not within an entitled class.

In order for a claimant to be able to maintain a lien, it must be able to show that its services or supplies were used or consumed in a work of improvement. It is the burden of the mechanic to prove that the material, labor or equipment was actually delivered to and actually used in the particular construction project and that it was furnished with that purpose in mind. Further, the work must be a permanent work of improvement or no lien arises.

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