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Construction equipment secured by mechanic's lien

Stop Payment Notice Attorneys

Overview

In California, stop payment notices can be issued on public and private projects alike anytime payment is overdue. These notices serve to put the project owner and lender on notice that the noticing party has not been paid. Further, a stop payment notice requires the recipient of the notice to withhold 150% of the amount included in the notice in order to secure the unpaid party.

The stop payment notice attorneys at Flores Ryan, LLP have expertise in every aspect of California stop payment notice procedures, deadlines, and law. We provide the legal expertise to ensure that stop payment notices are enforceable.  Our extensive experience in payment disputes including stop payment notices allows us to advance claims strategically to maximize the likelihood of a rapid and substantial recovery. 

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ARTICLES

Stop Payment Notice Chain Construction
Stop Payment Notice Deadlines

An overview the deadlines applicable to sending and enforcing stop payment notice.

Black and white construction worker
Establishing Breach Of Contract: You’ve Got To Prove It!

This article will discuss how to establish breach of contract, what qualifies as a legally sound breach of contract claim, and finally other possible recovery methods.

Boots of Contractor with Contractor's license maintained in good standing
Maintaining A California Contractors License In Good Standing

This article will cover the elements all contractors must pay attention to in order to ensure that their contractors license is properly maintained.

Construction question: Mechanic's Lien, Stop Payment Notice, Or Bond Claim?
Mechanic's lien, Stop Payment Notice, or Bond Claim?

A comparison of statutory payment remedies and when some or all should be employed.

KEY POINTS

  • Only amounts overdue for labor, services, or materials used to improve a project can be included in a stop payment notice.
  • In order to include amounts owed for labor, services, and materials in a stop payment notice, preliminary notice (if required) must have been sent within 20 days of the first day that the labor, services, and materials in question were provided.
  • On private projects, to eligible to send a stop payment notice, preliminary notice is required unless the stop payment notice claimant has a direct contractual relationship with the owner. If a lender is involved the direct contractor is required to send preliminary notice to the lender.
  • On public projects, to eligible to send a stop payment notice, preliminary notice is required unless the stop payment notice claimant has a direct contractual relationship with the direct contractor.
  • Stop payment notice will only require a lender to withhold funds if the stop payment notice is bonded.
  • A stop payment notice should be sent ASAP as it is only effective if there is still undistributed money to withhold.
  • Absent a notice of completion or cessation, the deadline to file an action to recover funds withheld pursuant to a stop payment notice is 180 days from project completion.
  • When a notice of completion or notice a cessation is recorded, the deadline to file an action to recover funds withheld pursuant to a stop payment notice is reduced to 150 days from that notice for direct contractors and 120 days from the notice for all others. A stop payment notice attorney should be contacted well in advance of this deadline.
  • Stop payment notice should not be released until the party due funds has been paid or the party withholding the money has agree to issue a joint check for the amount owed in exchange foe the release.

FORMS

Below you can generate the following forms are applicable to Mechanic’s Liens: