Judge: Michael P. Linfield, Case: 22STCP03194, Date: 2022-09-28 Tentative Ruling

Case Number: 22STCP03194    Hearing Date: September 28, 2022    Dept: 34

SUBJECT:                 Petition to Release Property from Mechanic’s Lien

Moving Party:          1122 South Hope Owner, LLC

Resp. Party:             None

Petitioner 1133 South Hope Owner, LLC’s Petition to Release Property from Mechanic’s Lien is GRANTED. The Court GRANTS Petitioner attorney’s fees and costs in the amount of $1,855.00.

I.           BACKGROUND

On August 29, 2022, Petitioner 1133 South Hope Owner, LLC filed a petition to release property from mechanic’s lien against Respondent Shangri-La Construction, LP.

On September 12 2022, Petitioner 1133 South Hope Owner, LLC served notice of the hearing to remove mechanic’s lien on Dalia Wahab, Agent for Service of Process for Respondent Shangri-La Construction, LP. (Proof of Service, filed September 12, 2022, p. 1.)

II.        ANALYSIS

A.          Legal Standard

“The claimant shall commence an action to enforce a lien within 90 days after recordation of the claim of lien. If the claimant does not commence an action to enforce the lien within that time, the claim of lien expires and is unenforceable.” (Civ. Code, § 8460(a).)

“Subdivision (a) does not apply if the claimant and owner agree to extend credit and notice of the fact and terms of the extension of credit is recorded (1) within 90 days after recordation of the claim of lien or (2) 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. In that event the claimant shall commence an action to enforce the lien within 90 days after the expiration of the credit, but in no case later than one year after completion of the work of improvement. If the claimant does not commence an action to enforce the lien within that time, the claim of lien expires and is unenforceable.” (Civ. Code, § 8460(b).)

B.          Discussion

Petitioner states it is the owner of the real property located at 1133 South Hope Street, Los Angeles, CA (the “Property”). (Petition, ¶ 1.) Petitioner notes that on February 23, 2021, Respondent “caused to be recorded against the Property a mechanic’s lien in the sum of $11,878,398.01, for labor, materials, equipment, services and/or work allegedly furnished by Respondent for a work of improvement (the “Lien”).” (Petition, ¶ 4, Ex. 1.)

Petitioner asserts that “more than ninety (90) days passed between the time that Respondent recorded its claim of lien against the Property and the date when the Respondent brought an action to foreclose on its claim of lien.” (Petition, ¶ 6.) The Court finds that the Lien was recorded on February 23, 2021. (Petition, ¶ 6.) The Court notes that ninety days from February 23, 2021 is May 24, 2021. (Petition, ¶ 8.) No extension of credit was requested or recorded, and Petitioner demanded Respondent to remove the Lien in writing on August 3, 2022. (Petition, ¶¶ 10, 11, Ex. 2.)

The Court finds that under Civil Code § 8460, the Lien is unenforceable because Respondent did not commence an action to enforce the lien within the statutory limitation.

The Court grants attorney’s fees in the amount of $1,420.00 in association with the present petition. (Potter Decl., ¶¶ 6-8.) The Court grants the requested costs of $435.00. (Potter Decl., ¶ 7.)

III.     CONCLUSION

Petitioner 1133 South Hope Owner, LLC’s Petition to Release Property from Mechanic’s Lien is GRANTED. The Court GRANTS Petitioner attorney’s fees and costs in the amount of $1,855.00.