Cal Sierra Construction, Inc. v. Comerica Bank
206 Cal. App. 4th 841
| Cal. Ct. App. | 2012Background
- Cal Sierra filed suit to enforce a mechanic’s lien and stop notice on a project financed by the banks.
- Plaintiff recorded a mechanic’s lien and served a stop notice for $2,368,622.25; Travelers later paid part of the claim and acquired rights.
- Banks moved for a Lambert motion to release the lien and stop notice, asserting payment and incomplete work.
- Trial court granted the Lambert motion, denied new trial, and denied banks’ attorney fees; Travelers withdrew intervention.
- Plaintiff appealed; banks cross-appealed for fees; the appellate court reversed and remanded with directions to deny the motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether banks were entitled to use Lambert motion | Lambert unavailable to banks as non-owners | Lambert expedites protection in enforcement action | Banks not entitled; Lambert procedure not applicable |
Key Cases Cited
- Connolly Development, Inc. v. Superior Court, 17 Cal.3d 803 (Cal. 1976) (due process safeguards for liens; owner remedies before enforcement)
- Lambert v. Superior Court, 228 Cal.App.3d 383 (Cal.App. 1991) (Lambert motion; probable validity standard in enforcement action)
- Howard S. Wright Construction Co. v. Superior Court, 106 Cal.App.4th 314 (Cal.App. 2003) (authority to assess in Lambert context; substantial evidence standard)
- A-l Door & Materials Co. v. Fresno Guar. Sav. & Loan Assn., 61 Cal.2d 728 (Cal. 1964) (stop notices; lender considerations)
- Grinnell Fire Protection Systems Co. v. American Sav. & Loan Assn., 183 Cal.App.3d 352 (Cal.App. 1986) (stop notice implications)