Judge: Cherol J. Nellon, Case: 23STCP02372, Date: 2023-10-09 Tentative Ruling

Case Number: 23STCP02372    Hearing Date: October 9, 2023    Dept: 14

Case Background

            Petitioner hired Respondent to perform work on its property. Respondent recorded a mechanic’s lien indicating money owed in the amount of $20,000.00.

            Petitioner now petitions this court per Civil Code §§ 8480 et seq. for an order releasing Respondent’s Mechanic’s Lien on the subject property.

Decision

            The petition is DENIED. This action is DISMISSED, without prejudice.

Governing Standards

            Civil Code § 8400 grants lien rights to contractors, material suppliers, equipment lessors, laborers, and design professionals, among others, who do authorized works of improvement on property. The lien may only be enforced if the claimant gives preliminary notice, unless the claimant is a laborer or has a direct contractual relationship with the owner. Civil Code §§ 8200, 8410. A claimant has 90 days after the completion of a contract to record a lien. Civil Code § 8414.

            A mechanic’s lien has priority over any encumbrance recorded after the work commenced. Civil Code § 8450. A claimant has 90 days after recordation of the lien to bring an action to enforce the lien, otherwise “the claim of lien expires and is unenforceable.” Civil Code § 8460(a). This limit may be waived for one year by a recorded extension of credit agreed to by both parties and recorded before a bona fide purchaser for value buys the property. Civil Code § 8406(b).

Civil Code § 8480 states in pertinent part:

“(a) The owner of property or the owner of any interest in property subject to a claim of lien may petition the court for an order to release the property from the claim of lien if the claimant has not commenced an action to enforce the lien within the time provided in Section 8460.

(b) This article does not bar any other cause of action or claim for relief by the owner of the property. A release order does not bar any other cause of action or claim for relief by the claimant, other than an action to enforce the claim of lien that is the subject of the release order.

(c) A petition for a release order under this article may be joined with a pending action to enforce the claim of lien that is the subject of the petition. No other action or claim for relief may be joined with a petition under this article.”

Civil Code § 8482 states:

“An owner of property may not petition the court for a release order under this article unless at least 10 days before filing the petition the owner gives the claimant notice demanding that the claimant execute and record a release of the claim of lien. The notice shall comply with the requirements of Chapter 2 (commencing with Section 8100) of Title 1, and shall state the grounds for the demand.”

Civil Code § 8484 mandates:

“A petition for a release order shall be verified and shall allege all of the following:

(a) The date of recordation of the claim of lien. A certified copy of the claim of lien shall be attached to the petition.

(b) The county in which the claim of lien is recorded.

(c) The book and page or series number of the place in the official records where the claim of lien is recorded.

(d) The legal description of the property subject to the claim of lien.

(e) Whether an extension of credit has been granted under Section 8460, if so to what date, and that the time for commencement of an action to enforce the lien has expired.

(f) That the owner has given the claimant notice under Section 8482 demanding that the claimant execute and record a release of the lien and that the claimant is unable or unwilling to do so or cannot with reasonable diligence be found.

(g) Whether an action to enforce the lien is pending.

(h) Whether the owner of the property or interest in the property has filed for relief in bankruptcy or there is another restraint that prevents the claimant from commencing an action to enforce the lien.”

Civil Code § 8486 requires:

“(a) On the filing of a petition for a release order, the clerk shall set a hearing date. The date shall be not more than 30 days after the filing of the petition. The court may continue the hearing only on a showing of good cause, but in any event the court shall rule and make any necessary orders on the petition not later than 60 days after the filing of the petition.

(b) The petitioner shall serve a copy of the petition and a notice of hearing on the claimant at least 15 days before the hearing. Service shall be made in the same manner as service of summons, or by certified or registered mail, postage prepaid, return receipt requested, addressed to the claimant as provided in Section 8108.

(c) Notwithstanding Section 8116, when service is made by mail, service is complete on the fifth day following deposit of the petition and notice in the mail.”

Civil Code § 8488 provides:

“(a) At the hearing both (1) the petition and (2) the issue of compliance with the service and date for hearing requirements of this article are deemed controverted by the claimant. The petitioner has the initial burden of producing evidence on those matters. The petitioner has the burden of proof as to the issue of compliance with the service and date for hearing requirements of this article. The claimant has the burden of proof as to the validity of the lien.

(b) If judgment is in favor of the petitioner, the court shall order the property released from the claim of lien.

(c) The prevailing party is entitled to reasonable attorney's fees.”

Discussion

            Respondent recorded a mechanic’s lien in the amount of $20,000.00on May 31, 2023. (Petition Exhibit A). Respondent had 90 days from May 31, 2023 (i.e. until August 29, 2023) to file an action to enforce the lien. Civil Code § 8460(a). The instant action was filed on July 7, 2023. Respondent’s assignor filed a separate action (LASC Case No. 23 STCV 17548) to enforce their lien on July 26, 2023.

            Petitioners have filed the wrong type of action for the relief they seek. A petition to release a mechanic’s lien is a special proceeding designed only for the removal of stale liens. Civil Code § 8480(a) permits the petition to be made where the claimant has not acted to timely enforce the lien. Civil Code § 8480(c) provides that such a petition may be made in the claimant’s action to enforce, but that it may be joined with “no other action or claim.”

            This action does not claim that Respondent has failed to timely enforce the lien. The Petitioners concede that Respondent has acted to timely enforce the lien. The claim in this action is that Respondent did not give proper notice before recording the lien. That position may afford a defense in the enforcement action or be grounds for a separate declaratory relief claim. But it is not a proper part of the release procedure.

            Petitioners argue that Civil Code § 8480(b) allows them to use the release procedure in this manner. It does not. Section 8480(b) merely clarifies that the release procedure is not the exclusive means of dealing with mechanic’s liens. There is no requirement that a property owner attempt the release procedure before, or in lieu of, seeking other legal remedies. It does not follow that a petitioner can seek those other remedies through the release procedure.

            In a related vein, Petitioners suggest that this action is a proceeding under Civil Code § 8490, rather than a proceeding under Civil Code § 8480. But there is no such thing as a proceeding under Section 8490. Section 8490 is not an authorizing statute. That section merely sets forth the procedural requirements for a judgment in any action that affects a mechanic’s lien.

Conclusion

            A petition for release of a mechanic’s lien is a special proceeding which may be employed only when the lien has not been timely enforced. Here, the lien has been timely enforced. The claim brought by Petitioner cannot be adjudicated in this proceeding. Therefore, the Petition is DENIED. The action is DISMISSED, without prejudice.