Rental Equipment, Inc. v. McDaniel Builders, Inc.

Rental Equipment, Inc., appeals from a judgment in favor of respondents McDaniel Builders, Inc. and Developers Insurance Company, on its action for foreclosure on a mechanic’s lien. We affirm.

Summary

A preliminary notice under Civil Code section 3097 is a necessary prerequisite to enforcement of a mechanic’s lien. (§ 3097, subd (a).) Such a notice must include “A general description of the labor, service, equipment, or materials furnished, or to be furnished, and an estimate of the total price thereof.” (§ 3097, subd. (c)(1).) In this case, the preliminary notices gave estimates of $10,000, but the ensuing mechanic’s lien was in the amount of $159,898. The trial court found that the notices were fatally defective because they did not give an estimate of the total price, that is, they did not give a figure which was derived by a rational process, based upon relevant factors.

This case thus presents a question about the meaning of the word “estimate” in section 3097. We agree with the trial court that the statute requires “a derived figure, arrived at by rational analysis,” and further find substantial evidence for the trial court finding that the $10,000 estimates here…