Can You Recover The Cost Of A California Mechanics Lien?

Can You Recover The Cost Of A California Mechanics Lien?You filed a mechanics lien, and it cost you money. Everything costs money these days it seems.  When you’re spending this money to get your Louisiana mechanics lien recorded, you’re probably wondering: Am I ever going to see this money again?  Do I have the legal right to recover the cost of filing this mechanics lien from the parties who owe this debt?  After all, you wouldn’t need to file the mechanics lien if they had just paid their invoice on time.

In California, there’s good news. The right to recover the cost of filing your mechanics lien is built right within the state’s mechanics lien statutory scheme.

California Civil Code article 3150 provides:

In addition to any other costs allowed by law, the court in an action to foreclose a lien must also allow as costs the money paid for verifying and recording the lien, such costs to be allowed each claimant whose lien is established, whether he be plaintiff or defendant.

As anyone following the California mechanics lien laws knows, this law is scheduled to change on July 1, 2012. While there are some substantive differences that will take effect on this date, most of the rest of the mechanics lien law will be pretty much relocated to another area in the Civil Code. That is the case for this provision. While the language is slightly different, see below, the result is the same:

In addition to any other costs allowed by law, the court in an action to enforce a lien shall allow as costs to each claimant whose lien is established the amount paid to verify and record the claim of lien, whether the claimant is a plaintiff or defendant.

If you file a mechanics lien in California, you are entitled to recover the costs you paid in having the lien recorded.  Remember, however, that you CANNOT include these costs in the mechanics lien amount itself. While it is recoverable, it is not to be included in the lien amount.  It’s just an amount you are entitled to recover above your lien amount as part of any mechanics lien foreclosure action.

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Can You Recover The Cost Of A California Mechanics Lien?
Can You Recover The Cost Of A California Mechanics Lien?
Can You Recover The Cost Of A California Mechanics Lien?
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About Scott Wolfe Jr

Scott Wolfe Jr. is the CEO of Zlien, a company that provides software and services to help building material supply and construction companies reduce their credit risk and default receivables through the management of mechanics lien and bond claim compliance. He is also the founding author of the Lien Blog, a leading online publication about liens, security instruments and getting paid on every account. Scott is a licensed attorney in six states with extensive experience in corporate credit management and collections law, with a specific emphasis on utilizing mechanic liens, UCC filings and other security instruments to protect and manage receivables. You can connect with him via Twitter, LinkedIn and Google+.Read Scott's Biography Post Here

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