by Andy Chen | Jul 3, 2020 | California
In a prior post, I went over the Preliminary Notice (aka “20-Day Notice”) as the first step in pursuing a Mechanics Lien in California. In another post, I went over the importance of having a construction contractor’s license in California. If you don’t have such a license, you’re forbidden from suing if a client doesn’t pay you. You’re also vulnerable to being sued for disgorgement of all compensation you earned while unlicensed. In this post, I’m going to address a question posed by a hybrid of these two posts: can you pursue a mechanics lien if you’re a construction contractor working without the required license? The short answer here is no. If you work in the construction trades and you don’t have the license that California requires you to have, you cannot pursue a mechanics lien against a client/customer who doesn’t pay you. The reason is the same statute I went over in my prior post, section 7031 of California’s Business and Professions Code. Section 7031(a) says: “Except as provided in subdivision (e), no person engaged in the business or acting in the capacity of a contractor, may bring or maintain any action, or recover in law or equity in any action, in any court of this state for the collection of compensation for the performance of any act or contract where a license is required by this chapter without alleging that he or she was a duly licensed contractor at all times during the performance of that act or contract regardless of the merits of the cause of action brought by the person, except that this prohibition shall...
