Mechanic’s Lien and the California Constitution
by Sam K. Abdulaziz, Abdulaziz, Grossbart & Rudman
The case of Clarke v. Safeco finally confirmed that mechanic’s liens are protected by the California constitution. The case started out in a dispute over work done at an office of MGM. Subcontractors were not paid. The reason for failing to pay subcontractors was alleged to be that the prime contractors above the subs were not paid. Therefore, the “Pay-If-Paid” clause protected the upper tier contractors.