Judge Katherine Chilton, Case 22STLC02745 2022-08-08 Tentative Ruling

Judge: Katherine Chilton, Case: 22STLC02745, Date: 2022-08-08 Tentative Ruling

Case Number: 22STLC02745 Hearing Date: August 8, 2022 Dept: 25

PROCEEDINGS: PETITION FOR RELEASE OF MECHANIC’S LIEN

MOVING PARTY: Petitioner Splitting Hairs Hermosa, LLC

RESP. PARTY: None

PETITION FOR RELEASE OF MECHANIC’S LIEN

(Civ. Code § 8480, et seq.)

TENTATIVE RULING:

Petitioner Splitting Hairs Hermosa’s Petition for Release of Mechanic’s Lien is CONTINUED TO SEPTEMBER 13, 2022 at 10:00 a.m. in Department 25 at the SPRING STREET COURTHOUSE. At least 16 court days before the next scheduled hearing, Petitioner must file and serve supplemental papers addressing the errors discussed herein. Failure to do so may result in the Petition being placed off calendar or denied.

SERVICE:

[X] Proof of Service Timely Filed (CRC, rule 3.1300) OK

[X] Correct Address (CCP §§ 1013, 1013a) OK

[X] At least 15 Days Lapsed (Civ. Code § 8486(b)) OK

[X] Correct Manner of Service (Civ. Code § 8486(b)) OK

OPPOSITION: None filed as of August 3, 2022 [ ] Late [X] None

REPLY: None filed as of August 3, 2022 [ ] Late [X] None

ANALYSIS:

I. Background

On April 19, 2022, Petitioner Splitting Hairs Hermosa, LLC (“Petitioner”) filed the instant verified Petition for Release of Mechanic’s Lien (the “Petition”) against Respondent Southern California Acoustics (“Respondent”). The Petition seeks an order releasing property commonly known as 1559 Pacific Coast Highway, Suite 201, Hermosa Beach, CA (the “Subject Property”) from a mechanic’s lien filed on November 8, 2021, by Respondent. (Pet. ¶¶ 1, 3.)

Petitioner filed a proof of service demonstrating Respondent was served by certified mail, return receipt requested, with the Petition, Notice of Hearing, and other relevant documents on July 13, 2022, at 14928 Ranch Creek Lane, Valley Center, CA 92082. (7-15-22 Proof of Service.)

The Petition was inadvertently set for a trial instead of a hearing; however, the trial date was vacated, and the Petition was set for hearing on August 8, 2022. (7-5-22 Minute Order.) Petitioner gave notice of the hearing via certified mail on July 13, 2022. (7-15-22 Proof of Service.)

Respondent did not file a response.

II. Legal Standard

After a mechanic’s lien has been recorded, “[t]he 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.” (Civ. Code, § 8480(a).) A claimant must commence an action to enforce a lien within 90 days of recording the lien, otherwise, “the claim of lien expires and is unenforceable.” (Civ. Code, § 8460(a).) However, the 90-day time limit to commence an action to enforce a lien does not apply if there was an agreement to extend credit and a notice of that fact was recorded within 90 days after recordation of the claim of lien or more than 90 days after recordation of the claim of lien but before a purchaser or encumbrancer for value and in good faith acquires rights in the property. (Civ. Code, § 8460(b).)

III. Discussion

A. Service Requirements

“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.” (Civ. Code § 8486(b).) Civil Code § 8108 provides addresses at which a respondent must be served, depending on the title of the person to be served. For example, a claimant should be served at the address on the “claimant’s contract, preliminary notice, claim of lien, stop payment notice… [etc.].” (Civ. Code § 8108(e).) The petitioner bears the burden of proving that he or she complied with service and date for hearing requirements. (Civ. Code. § 8488(a).)

Respondent was served with Petition, Notice of Hearing, and other related documents on July 13, 2022, at 14928 Ranch Creek Lane, Valley Center, CA 92082, which is the same address that Respondent listed on the Mechanic’s Lien filed with the County Recorder’s Office. (7-15-22 Proof of Service; Petition p. 8 – Ex. A.) Service was made through certified mail with return receipt requested. (7-20-22 Proof of Service, p. 2 – Ex. 1.)

The Court notes that Petitioner has served and filed a defective Notice of Hearing that contains the wrong address for the courthouse where the hearing will take place – 825 Maple Avenue, Torrance, California. (7-15-22 Notice of Hearing.) The correct address for the Spring Street Courthouse is 312 North Spring Street, Los Angeles, CA 90012. Therefore, the service requirements of § 8486 have not been satisfied.

B. Petition Requirements

Civil Code § 8484 requires that the petition for release order be verified by the petitioner and allege 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.

(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.

A property owner may not petition for a release order until he or she gives the claimant notice demanding that the claimant execute and record a release of lien claim at least ten days before filing the petition. (Civ. Code § 8482.)

Here, Petitioner has satisfied all requirements of Civil Code §§ 8482 and 8484. On March 25, 2022, Petitioner sent Respondent a written demand to remove the lien at Respondent’s address listed on the Mechanics’ Lien Claim. (Pet. ¶ 5; Ex. B.) Petitioner contends that “Respondent is unable or unwilling to execute a release of its lien.” (Pet. ¶ 5.) Subsequently, Petitioner filed the instant verified Petition accompanied by a certified copy of the Mechanics’ Lien Claim, Document No. 20211667912, filed with the Los Angeles County Recorder’s Office on November 8, 2021. (Pet. ¶ 3, Verification, Ex. A.) The Petition sets forth the legal description of the Subject Property and states that “[n]o action to foreclose the attached certified Claim of Lien is pending, no extension of credit has been recorded, and the time period pursuant to Civil Code § 8460, during which suit can be brought to foreclose the Claim of Lien, has expired.” (Pet. ¶¶ 4, 6.) Furthermore, Petitioner has not filed for bankruptcy, and no other restraint exists preventing Respondent from filing an action to enforce the lien. (Pet. ¶ 7.)

Although the petition requirements have been satisfied, the Court CONTINUES the hearing on the Petition and orders Petitioner to correct the Notice of Hearing, serve it on Respondent, and file it with the Court at least 16 court days before the next scheduled hearing.

IV. Conclusion & Order

For the foregoing reasons, Petitioner Splitting Hairs Hermosa’s Petition for Release of Mechanic’s Lien is CONTINUED TO SEPTEMBER 13, 2022 at 10:00 a.m. in Department 25 at the SPRING STREET COURTHOUSE. At least 16 court days before the next scheduled hearing, Petitioner must file and serve supplemental papers addressing the errors discussed herein. Failure to do so may result in the Petition being placed off calendar or denied.

Moving parties are ordered to give notice.