January/February 2012 Newsletter

We will be posting law updates, articles, CSLB Meeting Highlights, upcoming seminars, Did You Know? (Our Blog), and other valuable information for you.

The California Law Revision Commission and the Legislature have worked for many years to revamp the Mechanic's Lien, Stop Notice and Payment Bond process. SB 189 became law in 2010, and SB 190 became law in 2011. SB 190 cleans up SB 189. They both go into effect July 1, 2012. The changes are not very substantive to the entire process, but there are many of them and they will all need to be complied with. This article is meant to be a very brief overview of the items that are changing July 1, 2012.

 

The biggest change is the statutory reference changes. The Civil Code sections that deal with Mechanic's Liens, Stop Notices and Payment Bonds have been completely renumbered. As an example, the information currently found in Civil Code section 3081.1 will be found in the new Civil Code sections 8014 and 8300 after July 1, 2012.

A gentleman was telling his neighbor, "I just bought a new hearing aid. It cost me $4,000, but it is state of the art. It's perfect!"

"Really," answered the neighbor, "What kind is it?"

"12:30" was his response!

 

This article deals with workers' compensation and not the California Contractors' License Law. That should be kept in mind when you read this article.

 

Maria Ibarra, a homeowner, hired an unlicensed contractor (Claudio Quiroz) to build an additional four rooms and two bathrooms on her property, which already had an existing structure she was living in. Quiroz hired Eliazer Zaragoza to assist on the project. Zaragoza normally works at Taco Bell. On Zarogoza's second day of work, he did not receive any more instructions than what was given to him on his first day of work and he proceeded to remove stucco. He obtained a ladder that was on the property, set the ladder up and climbed on and off several times. Shortly thereafter, he fell from the ladder while trying to remove a nail, which resulted in an injury to Zaragoza's knee. Zaragoza filed a civil suit against Ibarra for his injury. Ibarra filed a Motion for a Summary Judgment which the trial court granted. A Summary Judgment Motion is where one can end the case without a trial since there is no dispute to the material facts of the case. The court found that Zaragoza assumed the risk of injury. No one alleged that there were any defects in the ladder. These were all undisputed facts.

 

On appeal, the Court of Appeal upheld the lower court's decision. Labor Code section 3351 extends workers' compensation coverage to any person employed by the owner of a residential dwelling whose duties are incidental to the maintenance of the dwelling. However, Labor Code section 3352 provides an exception stating that a worker hired by an unlicensed contractor on a home remodeling project is outside of the workers' compensation system if he has worked less than 52 hours on the job in the 90-days before the accident.

 

The court found that Ibarra was the owner of the property and that Zaragoza performed work that was incidental to the maintenance of Ibarra's home. Therefore, Labor Code section 3351 applied. However, Zaragoza was hired by Quiroz, an unlicensed contractor and worked less than 52 hours before being injured. As a result, Labor Code section 3352 applied and Zaragoza was outside the workers' compensation system. They also felt that Zaragoza brought the injuries upon himself through his use of the ladder prior to falling, and there was no negligence on the part of Ibarra.

 

 

I know I am not ever going to understand women!

I will never understand how you can take boiling hot wax, pour it on your skin, and rip the hair out by the root.

And yet, you are still afraid of a spider!

• Understand steps to take prior to starting construction
• Hear the Preliminary 20-Day Notice process explained and simplified
• Hear about the 2011 and 2012 changes to the Mechanic's Lien laws
• Understand the new Mechanic's Lien procedural requirements and forms, learn to comply
• Learn how to make your Mechanic's Liens and Stop Notices collectible
• Identify time limits and deadlines for recording Mechanic's Liens & serving Stop Notices
• Identify time limits and deadlines for filing Mechanic's Liens & Stop Notices
• Understand legal technicalities which make Mechanic's Liens & Stop Notices unenforceable and learn to avoid them
• Hear about the various bond claims available on private and public projects
• Learn the procedure for submitting bond claims
• Identify time limits and deadlines for notifying sureties and suing on bond claims
• Understand the law related to public and private projects, and the remedies and penalties available
• Identify circumstances that trigger prompt payment penalties

Email any questions to mca@agrlaw.com

• Hear about the 2011 and 2012 changes to the Mechanic's Lien laws
• Understand the new Mechanic's Lien procedural requirements and forms and how to comply
• Learn how to make your Mechanic's Liens collectible and your Stop Notices enforceable
• Identify time limits and deadlines for recording Mechanic's Lien and Stop Notice lawsuits
• Understand legal technicalities & defenses to collections and how to avoid them

Email any questions to mca@agrlaw.com

 

***** ***** ***** ***** *****

 

Collecting Your Money

Mechanic's Liens, Stop Notices & Bonds

&

Ask The Expert!

Presented by Kenneth S. Grossbart

Seminar Hosted by the Shasta Builders Exchange

 

Thursday March 1, 2012

Collecting Your Money 12:00 p.m - 3:00 p.m.

Ask The Expert! 3:30 p.m. - 5:30 p.m.

At Shasta Builders Exchange Training Center (SBE)

2985 Innsbruck Drive

Redding, CA 96003

 

Collecting Your Money

$65 for SBE members

$75 for Association and Professional members

$85 for Non-members

 

Ask The Expert!

$45forSBEmembers

$55forAssociationandProfessionalmembers

$65forNon-members

RegisterbyfillingouttheMechanic'sLienLawRegistrationFormortheAskTheExpertRegistrationForm

ParticipateintheCollectingYourMoneyseminarto:

• Learn how to protect your rights
• Learn which forms to use
• Learn about the new changes to the Preliminary Notice
• Learn the new laws that affect Mechanic's Liens & Stop Notices
• Learn what legislative changes there are because of SB 189 and others
• Learn what to do to make a Mechanic's Lien valid
• Learn how to record and enforce a Mechanic's Lien
• Learn the basic Stop Notice requirements
• Learn the basics on bond claims
• Learn common pitfalls to avoid
• Learn how to collect your money!

***** ***** ***** ***** *****

Collecting Your Money

Mechanic's Liens, Stop Notices & Bonds

The Flow Expo

 

Saturday, March 3, 2012

10:30 a.m. - 12:00 p.m.

At the PHCC-GLAA Flow Expo

Long Beach Convention Center

300 E. Ocean Blvd., Long Beach, CA 90802

Room 203B

 

Free with Trade Show Registration

 

Register for the Trade Show

 

Attend this seminar to:

• Learn how to protect your rights
• Learn which forms to use
• Learn about the new changes to the Preliminary Notice
• Learn the new laws that affect Mechanic's Liens & Stop Notices
• Learn what legislative changes there are because of SB 189 and others
• Learn what to do to make a Mechanic's Lien valid
• Learn how to record and enforce a Mechanic's Lien
• Learn the basic Stop Notice requirements
• Learn the basics on bond claims
• Learn common pitfalls to avoid
• Learn how to collect your money!

CONTRACTOR

A gambler who never got to shuffle, cut or deal.

BID OPENING

A poker game in which the losing hand wins.

BID

A wild guess carried out to two decimal places.

LOW BIDDER

A contractor who is wondering what he left out.

OSHA

A protective coating made by half-baking a mixture of fine prints, red tape, split hairs and bologna equally applied at random with a shot gun.

LIQUIDATED DAMAGES

A penalty for failing to achieve the impossible.

COMPLETION DATE

The point at which liquidated damages begin.