LEGAL NEWS


Explaining that former Civil Code section 3106 (now CC 8180) defined “completion” as “actual completion” not “substantial completion,” the Court held: As we have explained, the mechanic’s lien statute is intended to inure primarily to the benefit of persons who perform labor or furnish materials for works of improvement, and it is to be liberally construed for the protection of laborers and material suppliers, with doubts concerning the meaning of the statute generally resolved in favor of the lien claimant. Interpreting completion as actual completion gives lien claimants the maximum amount of time to assert their rights before such rights are cut off, whereas inter- preting completion as substantial completion could cut off mechanic’s lien rights much earlier.


Te Court of Appeals held:


(1) Picerne was installing grip tape on stair treads after July 25, 2006, which was original contract work not merely corrective or repair work; and (2) the roofing work performed after July 25, 2006 could not be warranty work because Castellino did not begin renting the apartments until October 2006. In short, explained the Court, “the roof and stairway work performed after July 25, 2006, is not comparable to adding a few strokes of paint or turning a screw.”


The Takeaway So what lessons can we take away


from Picerne? 1. “Completion,” even with the defini- tions provided under the Civil Code, can often be unclear. Tis is true under both the former and the current statute.


AGC Legislative Advocacy at Work AGC of California advocacy efforts drive home the funda-


2. Determining when completion has occurred can be extremely


mental role that construction plays in the economy — and the policy issues that must be addressed to ensure the industry continues to create jobs, drive economic growth and provide value for its members. Governmental affairs play a large role in AGC of California


service to its members. The association believes that working with elected officials on industry issues is the key to success for the future of construction. Following are some of the main issues that AGC’s legislative team is actively working on.


 Protect transportation funding: Funds for highway construction continues to be raided as a “quick fix” for legislators. As an industry AGC believes we must protect these funds to ensure future transportation projects are not in jeopardy.


 Streamline environmental requirements for a reasonable and effective practice.


 Eliminate regulatory burdens in order to cut project costs and speed up construction schedules.


 Create a fair tax structure to not overburden business owners and stunt economic growth in California. One of the keys to this is a reduction in business property taxes.


Renewable energy is the future for business in California


and AGC of California is working ensure a smooth transition. AGC of California believes reasonable oversight and creating uniform city ordinances to expedite the application process will help to build California as a leader in renewable and sustainable energy practices.


www.AGC-CA.org Associated General Contractors of California 19


fact dependent, requiring parties to show whether work performed was original contract work or merely corrective or repair work; if the work was warranty work; and, as seems suggested by the Court of Appeals with its “few strokes of paint or turning a screw” comment, even the substance of the work performed.


3. When there’s doubt, given Califor- nia’s liberal interpretation of the state’s construction payment remedy statutes, they will generally be resolved in favor of the claimant. 


Garret Murai is a partner at Wendel, Rosen, Black & Dean LLP and is co-chair of the firm’s Construction Practice Group. He is also the editor of the firm’s California Construction Law Blog (www.calconstructionlawblog.com), which provides an informative yet wry look at issues affecting the construction industry in California. He can be reached at gmurai@ wendel.com.


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