Litigation Guarantee in a Mechanic’s Lien Foreclosure

Updated on November 15, 2019

In today’s post, we discuss the importance of obtaining a litigation guarantee in a mechanic’s lien foreclosure action.

In order to enforce a mechanic’s lien, an action must be brought in the proper court within 90 days of the recording of the lien. (Civ. Code § 8460.) To ensure that the complaint adequately alleges all the elements of a mechanic’s lien foreclosure, the complaint should contain allegations regarding the following:

1. The existence of a debt owed to the claimant;
2. The amount of the debt;
3. The fact that claimant is a person entitled to a mechanic’s lien;
4. The priority of the lien over other encumbrances and liens on the property
5. The fact that claimant has complied with the statutory requirements, such as service of a preliminary notice when required and satisfaction of all applicable deadlines.

In addition, to the above pleading requirements, like a quiet title action, the claimant must: (a) name all persons claiming an interest in the property; and (b) serve them with as defendants. The purpose of this is to ensure that the judgment can be enforced against all necessary parties.

In order to satisfy the pleading requirement of lien priority and ensure all necessary parties are named, it is very important to obtain a litigation guarantee prior to preparing, filing and serving the complaint.   The litigation guarantee can reveal what liens exist against the subject property, the priority of the liens and where your lien falls within that spectrum, whether there is any equity in the property, and identify any parties that have an interest in the property. This also ensure that the actual legal owner of the property is named in the lawsuit. All of these are important considerations before you begin a mechanic’s lien foreclosure action.

Schorr Law has experience with litigating matters that require the use of a litigation guarantee. To see if you qualify for a free 30-minute consultation regarding your matter, please contact us by phone, email, or send us a message through our contact form.