Judge: Mel Red Recana, Case: 24STCP01645, Date: 2024-07-30 Tentative Ruling

Case Number: 24STCP01645    Hearing Date: July 30, 2024    Dept: 45

Superior Court of California

County of Los Angeles

Hearing date:              July 30, 2024

Moving Party:             Petitioner

Responding Party:       None

Petition to Release Property from Mechanic’s Lien

The Court considered the Petition.

The hearing on Petitioner CHA Hollywood Medical Center, L.P.’s Petition to Release Property from Mechanic’s Lien is CONTINUED TO _____ at ____ a.m. in Department 45 at the STANLEY MOSK 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.

Background

            On May 21, 2024, Petitioner CHA Hollywood Medical Center (“Medical Center”) filed the instant verified Petition to Release Property from Mechanic’s Lien (“Petition”) against Respondent Chino Steel Inc. (“Chino Steel”).  The Petition seeks an order releasing property commonly known as 1300-1322 North Vermont Ave., Los Angeles, CA 90027 ( “Subject Property”) from a mechanic’s lien filed on July 20, 2023, by Respondent Chino Steel.  (Pet. p. 2.)

            On July 2, 2024, Petitioner filed an Amended Notice of Hearing indicated that the Petition would be heard on July 30, 2024 in Department 45.

On July 24, 2024, Petitioner filed a Notice of Non-Opposition to the Petition.  To date, no opposition has been filed.

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).)

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, or claim against a payment bond, or on the records of the Contractors' State License Board.”  (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).)

On June 14, 2024, Petitioner filed Proof of Service indicating that the Petition and all supporting documents were personally served on Respondent on May 29, 2024, at 10604 Horley Ave, Downey, CA 90241.  Subsequently, on July 15, 2024, Petitioner filed Proof of Service indicating that the Amended Notice of Hearing was personally served on Respondent at the 10604 Horley address on July 7, 2024.

Here, Petitioner has not met its burden of proving that Respondent has been properly served with the Petition, Notice, and supporting documentation as the Court is not presented with any proof that 10604 Horley Ave, Downey, CA 90241, was Respondent’s proper address.  The Claim of Mechanic’s Lien lists Respondent’s address as 515 E. Banning Street, Compton, CA 90222, which is also the address where Petitioner served Respondent with the notice of demand to release mechanic’s lien.  Accordingly, the Court cannot determine whether Petitioner has complied with the service requirements of the instant Petition.

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.

(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.

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.)

On April 10, 2024, Petitioner sent Respondent Chino Steel a letter, by messenger and certified mail, at the address listed on the Claim of Mechanic’s Lien (515 E. Banning Street, Compton, CA 90222), demanding a release of the lien.  (Pet. p. 3, Ex. C; Gasparyan Decl. ¶ 6.)  Respondent did not respond to Petitioner’s demand or provide proof of releasing the lien.  (Ibid.)

Subsequently, on May 21, 2024, Petitioner filed the instant verified Petition, which states that the mechanic’s lien, Instrument No. 20230478110, was recorded with the Los Angeles County Recorder’s Office on or about July 20, 2023.  (Pet. p. 2, Ex. B; Gasparyan Decl. ¶ 3.)  Petitioner has attached a certified copy of the mechanic’s lien.  (Ibid.)

The Petition sets forth the legal description of the Subject Property and states that no action was filed within 90-days of recording of the lien.  (Pet. p. 2, Ex. A; Gasparyan Decl. ¶ 3.)  Petitioner also states that no extension of credit has been recorded, Petitioner has not filed for bankruptcy, and no other restraint exists preventing Respondent from filing an action to enforce the lien.  (Pet. pp. 2-3, Gasparyan Decl. ¶ 4.)

Petitioner seeks to have the Subject Property released from the mechanic’s lien and requests an order granting reasonable attorney’s fees and costs.

Although Petitioner has complied with all requirements for the instant Petition, the Court is not presented with sufficient proof that Petitioner complied with the service requirements.

Accordingly, the hearing on Petitioner CHA Hollywood Medical Center, L.P.’s Petition to Release Property from Mechanic’s Lien is CONTINUED TO _____ at ____ a.m. in Department 45 at the STANLEY MOSK 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.

Moreover, Petitioner may request attorney’s fees and costs pursuant to a separate noticed motion under Civil Code § 8488.

            It is so ordered.

Dated: July 30, 2024

_______________________

MEL RED RECANA

Judge of the Superior Court