Mechanic’s Lien Claims

Law Offices
An Association Of Lawyers Not Including A  Partnership
1014 Broadway, Suite A
El Cajon, California 92021
Telephone • Fax (619) 749-0656

Beard Hobbs

Of Counsel
Adam Conzales

Trial Practice With Emphasis In
Construction Law and Civil Business Litigation

Mechanics Lien Claims

When recording a Mechanic’s Lien the law provides that the dollar amount stated on your Mechanic’s Lien should be the principal amount of your claim.   The interest rate should be 10% per annum.

The cost of preparing and recording your Mechanic’s Lien is an amount that you are legally entitled to recover, assuming that you go to trial and prevail against the project owner.   There is nothing in the law that prohibits you from settling your claim and convincing either the owner or the contractor to pay you the additional cost of preparing and recording your Mechanic’s Lien.

            Please take note, that it is not Master Liens duty to collect the cost of preparing or recording your Mechanic’s Lien.  Master Liens will record your Mechanic’s Lien for any dollar amount that you state you are owed.  It is your duty to provide Master Liens with a correct dollar amount and interest to be recorded with your Mechanic’s Lien.

The legal rate of interest on a Mechanic’s Lien is 10% per annum.  By virtue of a written contract you may be entitled to a different interest rate and/or service charges.  Contract interest rates that are different from the 10% approved by law and/or service charges are not something that should be put on your Mechanic’s Lien.  Remember that a Mechanic’s Lien claim is an equitable remedy and is completely separate and apart from  a claim based on a written contract.

If you intentionally overstate the value of your Mechanic’s Lien, the court can void your lien which in effect will make it unenforceable.   An unintentional misstatement of the value of a Mechanic’s Lien, is not a problem, because historically, the court has the power to reduce the value of the Mechanic’s Lien according to proof.

Hopefully this information will assist you in determining what amount and what interest rate you should provide Master Liens when requesting that Master Liens prepares a Mechanic’s Lien at your request.

Prepared by Beard Hobbs attorney at law.