Fontana Paving, Inc. v. Hedley Brothers, Inc.

We hold here that a mechanic’s lien claim recorded more than 90 days after completion of the work of improvement is ineffective notwithstanding a later filed notice of completion which erroneously recites a completion date postdating the claim of lien. As we read the applicable statutes, a valid notice of completion serves to shorten the lien-claim filing period. An invalid notice of completion has no legal effect, although it may furnish a factual basis for estopping a statute of limitations defense. Because there was no evidence supporting estoppel here, we will reverse the trial court’s judgment in favor of the lien claimant.

Factual and Procedural Background

Appellant Hedley Brothers, Inc. (Hedley) was the general contractor engaged to construct a Wal-Mart Store in Ridgecrest, Kern County, on property owned by Wal-Mart Stores, Inc. The written construction contract was dated May 17, 1990, and provided for substantial completion of the work no later than December 18, 1990. Hedley, in turn, entered into a subcontract with L M Contracting, Inc. (L M) for the asphalt paving work associated with the project. Respondent Fontana Paving, Inc. (Fontana) furnished asphaltic…