New Mechanic's
Lien Laws and Stop Notice Rules
Change Effective January 1, 2011!
Considered
experts in construction, Hunt Ortmann attorneys have been
assisting the Law Review Commission over the past decade on this
major revision to the Mechanic's Lien law and Stop Notice rules.
Having a heavy hand in the outcome of SB 189, Hunt Ortmann knows
what these changes really mean to you and how they will affect your
business. Some of the major changes are enclosed and listed below
for your information.
On October 1,
2010, Mechanic's Lien laws and Stop Notice rules changed for all
those in the construction industry of California as Governor
Schwarzenegger signed SB 189. The forms have changed, the rules have
changed, and you need to know before it's too little, too late.
Being actively involved in understanding
the construction industry, we at Hunt Ortmann Palffy Nieves Lubka
Darling & Mah, Inc. want to share with you the importance of these
upcoming changes to provide awareness so as to eliminate any
unwanted surprises in the future. Let's face it- nobody likes to be
in the dark.
Knowing how to approach Mechanic's Liens
and Stop Notices will ensure the documents remain valid when posed
with an issue regarding your business. Sometimes, especially when
dealing with new laws, you may require some guidance. That is where
we come in…
As a firm who specializes in
construction matters, Hunt Ortmann has over 20 years experience in
dealing with Mechanic's Liens and all other aspects of Lien Law and
construction.
Many companies
think they know the new rules, but we helped rewrite them. Since
1879, the State of California has protected and guaranteed
contractors, subcontractors and suppliers who have not been paid the
right to be compensated- make sure you are exercising your right to
be protected.
Although you have until July 2012 to
implement these changes, it remains important to understand how
these changes will affect you prior to the date of SB 189's
inception.
Changes Made by SB 189 Include:
-The current
waiver and release forms for progress and final payments will no
longer be usable.
-The Stop Notice (renamed Stop Payment
Notice) rules, particularly public agency related rules, have been
entirely reorganized.
-There are new and expanded grounds to
petition for the removal of a Mechanic's Lien and improved recovery
of attorney's fees.
-There is a new requirement for a Notice
of Intent to Record a Lien.
-The numbering of all code sections has
changed.
-Hundreds of other critical and minor changes to the laws.
If you have any
questions regarding the application of SB 189, please do not
hesitate to visit our Mechanic's Lien page on our website at
www.huntortmann.com or
contact us at (626) 440-5200.
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Hunt Ortmann Palffy Nieves Lubka
Darling & Mah, Inc. 301 North Lake Avenue, 7th Floor, Pasadena, CA
91101 | Ph. 626-440-5200 | Fax 626-796-0107
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Ortmann Palffy Nieves Lubka Darling & Mah, Inc.
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