Need a book? Engineering books recommendations...

Return to index: [Subject] [Thread] [Date] [Author]

Re: Pay when Paid

[Subject Prev][Subject Next][Thread Prev][Thread Next]
If you have a case reference that I can keep in my back pocket, I would
appreciate it. I may need to refer to it in small claims court someday.

Thanks,
Bill Allen

----------
> From: Brent Koch <brentk(--nospam--at)tdl.com>
> To: seaoc(--nospam--at)seaoc.org
> Subject: Re: Pay when Paid
> Date: Monday, September 15, 1997 6:23 PM
> 
> > From: Bill Allen, S.E. @ ALLEN DESIGNS <BAllenSE(--nospam--at)pacbell.net>
> > To: seaoc(--nospam--at)seaoc.org
> > Subject: Re: Pay when Paid
> > Date: Monday, September 15, 1997 4:35 PM
> > 
> > Do you believe that this court ruling is applicable for design
> > professionals (i.e., engineers contracting with their architectural
> > clients)?
> > 
> > Regards,
> > Bill Allen
> > 
>
----------------------------------------------------------------------------

> ------------------
> 
> I believe it is applicable. The basis for which the clause was struck
down
> remains the same in a contract between design professionals. 
> 
> Design professionals possess mechanics lien rights for the services
> performed for a specific job. These lien rights are protected under
> California Civil Code [what section - I have no idea]. The pay when paid
> clause causes an indirect waiver of these lien rights in the event of
> non-payment by the owner and is therefore void.
> 
> To establish and protect one's lien rights it is necessary to file a
> California Preliminary Lien Notice for each project at the commencement
of
> work on the project. Note that this is not a lien itself but merely a
> notice to the Architect and Owner that you are performing work related to
a
> specific project and that you are a person or entity who posses mechanics
> lien rights on this project.
> 
> One down side is paperwork. Preliminary notices are required at the start
> of contract work and various lien releases required as payments are
> received. Plus, should it be necessary to actual lien a project, a fair
> number of other forms get filed, resolution still takes  months, and
you'll
> probably still end up using legal counsel (although the cost of his
> services become as a part of the claim).
> 
> Hey, but if the amount is small enough, you can sue in small claims court
> and bypass all the mechanic lien heartburn.  I believe the claim ceiling
is
> being, or has been, raised.
> 
> Litigiously yours,
> 
> Brent Koch, P.E.
> Willis Construction Company
> San Juan Bautista, CA