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A. J. Raisch Paving Co. v. Mountain View Savings & Loan Ass'n

Citations: 28 Cal. App. 3d 832; 105 Cal. Rptr. 96; 1972 Cal. App. LEXIS 800Docket: Civ. 29755

Court: California Court of Appeal; November 21, 1972; California; State Appellate Court

Narrative Opinion Summary

In this case, a mechanic's lien foreclosure arose between Mountain View Savings and Loan Association and A.J. Raisch Paving Company concerning improvements made on a tentative subdivision, Tract 2634. Raisch had contracted to perform site improvements, including sewer installation, for Donald L. Stone Homes, Inc., and subsequently filed a mechanic's lien. The primary legal issue involved the timeliness of Raisch's lien filing under former Code of Civil Procedure sections 1193.1(d) and (e). The trial court found Raisch's lien was timely, noting that the work was subject to governmental acceptance as mandated by Newark City Ordinance 62. Furthermore, the court held that costs for the sewer on Robertson Avenue, benefiting both Tract 2633 and Tract 2634, should be apportioned. The court rejected Savings and Loan's argument that the lack of final map approval negated the 'subject to acceptance' condition. Ultimately, the judgment affirmed Raisch's lien on Tract 2634 with cost allocation, while each party bore its own appeal costs. The court's decision reflects the application of equitable principles in waiving lien rights and statutory provisions for mechanic's liens.

Legal Issues Addressed

Apportionment of Costs in Mechanic's Lien

Application: The court determined that the costs for sewer work should be apportioned between Tract 2633 and Tract 2634, allowing a lien only for the portion benefiting Tract 2634.

Reasoning: The court found that costs associated with the sewer on Robertson Avenue, which also benefited adjacent completed subdivision Tract 2633, needed to be apportioned between the two tracts.

Mechanic's Lien and Governmental Acceptance under Code of Civil Procedure Section 1193.1(e)

Application: The court found that Raisch's lien filing was timely as the work was subject to acceptance by a governmental authority, fulfilling the criteria of section 1193.1(e).

Reasoning: The key issue was whether Raisch's project was 'subject to acceptance' by public authority... The Newark City Ordinance 62 mandated city council acceptance, fulfilling the criteria for section 1193.1(e).

Mechanic's Lien Waiver and Equitable Principles

Application: The court discussed that equitable principles allow contractors to waive their lien rights, but such waiver affects the ability to claim liens on certain tracts.

Reasoning: Contractors may waive their lien rights on parts of a tract, as equitable principles apply in mechanic’s lien foreclosure proceedings.

Timeliness of Mechanic's Lien under Former Code of Civil Procedure Section 1193.1(d)

Application: The court evaluated the timeliness of Raisch's mechanic's lien filing and concluded that it was timely filed, despite Savings and Loan's argument that it was not.

Reasoning: Savings and Loan argued that Raisch’s lien claim was untimely under former section 1193.1(d), which required a claim to be recorded within 90 days after a 60-day cessation of work.